Introduction
Credit is a sum of money which is provided by banks, financial institutions, and licenced money lenders to the borrower for a variety of purposes at a charged rate. There are various reasons for availing credit facilities from the banks or moneylenders, and one of the motives of the borrower for taking a loan is the education of his or her child. It is a well-established fact that education is the single most important thing for the growth and personality of an individual. Education is considered an expensive investment in a child. This article provides a general overview of what an education loan is.
What is an education loan?
An education loan is an amount of money borrowed by a student to pursue his or her secondary or post-secondary education for the development of his or her life. An education loan works as a support for parents in terms of financial arrangements for tuition fees for their children. Every parent has a dream for their children that they will do their best possible to provide a quality education for their children. It is a hard fact that education is the most expensive thing to afford for most individuals, so they prefer to avail the facility of an education loan. For more information, visit the best licensed money lender in Philippines.
The criteria for availing the facility of an education loan
To avail the facility of education loan for a student, certain documents need to be submitted to the concerned authorities. Students should submit a fee structure, admission letter, marksheet of 10th and 12th class, KYC documents, etc. to the concerned financial institution. It should be noted that the student must be a citizen of the country in order to qualify for the loan. If the student wants an education loan, then he should also fulfil other statutory requirements.
The importance of education loans
There are various benefits of availing the facility of an education loan. An education loan carries a lower rate of interest as compared to other loans. An education loan helps the family to save their investments and savings for the future and gives financial independence to the family. Education loans also had a tax benefit. An education loan is granted to the student with the least documentation and is approved easily. Education loans can be taken from the best licenced money lenders because they are not much concerned about documentation, which leads to quick approval of the loan.
Conclusion
Quality education is every parent’s dream. An education loan helps an individual to pursue his/her studies without worrying much about financial problems. Education loan gives financial independence to the concerned families and offered at low rate of interest.