What is education loan?
Education loan is a special kind of loan granted by banks under which some amount of money is granted to students at special rates. With the help of education loan, the students can achieve higher and costly studies at cheaper rates.
Benefits of Education loan
The interest paid on the education loan can be claimed as deduction, as per Section 80E of the Income Tax Act, 1961. The income tax benefit can only be claimed on interest part of the loan. The principal part does not qualify for tax benefit.
1. Application form filled by dually applicant and co applicant or guarantor.
2. Passport size photographs
3. Identity and Residence Proofs – PAN Card or Adhar Card
4. Form 135
5. Proof of Assets like LIC/RC of Vehicle/Property etc.
6.Statement of All Outstanding Loan Accounts and Credit Cards last 6 months
7.Proof of past Academic record
8. Copy of passport with valid visa (in case of overseas study)
9.Income certificate for availing interest subsidy, if eligible.