Education Loan: For Colleges, and also schools

No matter how important other things are in life, A child always remains the centre of a parent’s life, and every parent wants the best possible life for his or her children. Be it education, a good lifestyle or anything else, as a parent, one would always try to ensure that every dream of his or her child gets fulfilled. Among all the other efforts of securing your child’s future, like child insurance or investment on their behalf, there is one thing that really helps them out to fulfil their dream of having the best possible education, and be independent about it.
The cost of education has increased dramatically everywhere, and in order to get into a good job and have a well deserved head start to their career, it is imperative that your child gets the best possible education. If your income does not suffice to meet the cost of your child’s dream college, you do not need to be disappointed anymore. Opt for a sensible Education loan.
Education loans have a lower interest rate compared with personal loans. You could also get a further concession if you provide a collateral. It’s very likely that the fee your parents paid to educate you from kindergarten till graduation is less than the annual fee that you pay for your child’s playschool today. In a metro city, a playschool can make you poorer by Rs 35,000-1 lakh a year, while primary and secondary education in a private school can cost between Rs 50,000 and Rs 5 lakh a year.
Paying such high fees could be a problem if you face a financial crisis, but there’s no way you can remove your child from school, can you? Now, you can resolve this dilemma by simply stepping into a bank. Yes, banks have started offering education loans for children’s school fees, a phenomenon that took off about a year ago.
Earlier, education loans were offered only for professional courses. Now, you can take them to pay the school fee for classes ranging from nursery to senior secondary. The banks that offer this facility include public sector entities, such as Bank of Baroda, Central Bank of India, State Bank of Hyderabad and J&K Bank. The loan amount usually varies from Rs 30,000-1 lakh, but the Bank of Baroda has an upper limit of Rs 4 lakh. Though you don’t need an account with these banks to avail of the facility, accountholders are given preference. As a senior official from the Central Bank of India affirms, "We will give a loan to a customer even if he does not have an account with us, but serving an existing customer will be our first priority." Another condition is that the school should be affiliated to ICSE, CBSE or any state education board.
The loan is primarily meant to fund the tuition fee, but it can also be used to pay for other expenses, such as buying a laptop or any apparatus that may be required for projects. However, in such a case, the equipment will remain in the bank’s name as security till the total amount is paid.




Earlier, you would have needed a professional financial advisor to suggest the best possible policies for you in this case. But now, you can do all the research yourself, that too in an extremely easy and hassle free way. Simply use an Online Insurance quote calculator. These handy calculators are available on almost all the money management websites on the internet. You just have to enter the relevant information, and these tools will provide you with a detailed facet by facet comparison of various suitable policies for you. Choose out of them, and you are set to secure your child’s future, forever!