What are the types of education loans? [2022] | Types of Education Loan?
Types of Education Loan
Do you want to know what are the types of education loans? So after reading this blog post, your questions will be easily answered – Types of Education Loan?
What are the Types of Education Loan?
Education loan is basically a form of monetary assistance received by the students to meet the expenses related to their studies. Education loans can be availed through funding, scholarships and awards and are given in cash, which has to be repaid to the lender along with an interest rate. Students who wish to avail education loans are advised to borrow based on their needs as the repayment tenure of these loans can vary substantially depending on the lender and the amount borrowed by the student.
Most student loans available to individuals in India are offered at relatively low interest rates, and interest payments are not required to be made immediately. Students are usually given a period from the time the loan is taken to the time the repayment starts.
Education loans are unsecured loans that can be used to cover expenses related to education, such as tuition fees, books, living expenses and other expenses like transportation costs etc. If you want to get an education loan but are unemployed or still studying, a co-signer may be required to obtain the education loan, as can a qualified adult such as a friend, parent or relative. The loan can be repaid after the student completes his education. Given the flexible terms and conditions attached to the repayment of education loan, availing it is quite simple and straightforward.
Different Types of Education Loan – Types of Education Loan?
There are many different education loans that are offered for different types of education programs. Depending on the type of education, there are student loans for diploma and certificate courses, student loans for skill -based courses, student loans for study abroad, etc.
Whatever the course, there are two broad categories of education loans based on location.
1) Domestic Education Loan – For educational courses within the geographical limits of the country.
2) Study Abroad Education Loan – For educational courses outside the geographical boundaries of the country.
Apart from these, education loans can be divided on the basis of some other categories. These include the following:
On the basis of course of education:
- higher education loan
- diploma study loan
- loan for vocational courses
- On the basis of security of surety and/or guarantee:
- secured loan
- unsecured loan
What is education loan for study abroad?
As the name suggests, education loan for study abroad is a loan that can be availed for pursuing an education course abroad. Depending on the type of course, there are many options that are available under study abroad education loan.
Following are the education loans in India:
- graduate education loan
- Vocational/Graduate Education Loan
- career education loan
- loan for parents
- graduate student loans
Graduate student loans can be availed by individuals who have completed secondary education and wish to pursue a three or four year course to enhance their job opportunities.
Professional / Graduate Student Loans
Professional/graduate student loans can be availed by students who wish to pursue advanced degrees or higher education in colleges across the country. The student must have completed an undergraduate course in order to apply for an undergraduate student loan.
career education loan
Career education loans can be availed by students who wish to attend graduate career-oriented programs at trading and technical schools and colleges across the country.
loan for parents
Parents of students can avail these loans, which are unsecured, to meet expenses related to their child's education, such as tuition fees, living expenses, books, uniforms, and other expenses like transportation costs. Loans can be obtained not only by parents, but also by other adult relatives who wish to enroll their children in secondary schools, military primary schools, religious, private or non-public schools across the country.
We hope that after reading this blog post your question is what are the types of education loan? (Types of Education Loan) You must have easily found the answer to this question.
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