The education loan scheme got a leg-up in the Interim Budget 2014-15 when finance minister P Chidambaram announced a moratorium period for all education loans taken up to March 31, 2009, and outstanding as of March 31, 2013. Nearly 9,00,000 student-borrowers raked in benefits to the tune of around Rs 2,600 crore.
The two big advantages with an education loan are, one, you get a moratorium of up to seven years on an education loan, when you don’t even have to worry about paying the EMI; and second, besides tuition fee, education loans also cover a big portion of your boarding and loading expenses during your stay abroad. Another advantage is that there is no penalty on pre payment of an education loans.
The catch? You need to be able to flash the admission letter from a reputed institute.