Educational loan is a financial support system provided by banks and financial institutions to help students pursue higher education without financial burden. It plays an important role in making education accessible to all, especially for students from economically weaker backgrounds.
In India, many banks such as State Bank of India, HDFC Bank, and ICICI Bank offer education loans for studies in India and abroad. These loans cover expenses like tuition fees, books, hostel charges, and even travel costs for foreign education.
One of the key benefits of an educational loan is the moratorium period, during which students are not required to repay the loan. Repayment usually starts after completing the course. Interest rates are generally reasonable, and students may also get tax benefits under Section 80E.
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