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Is it a good decision to take an education loan


Date: 20 May 2016   Posted By: Pappu Das     Group: Finance and Investments    Category: Banking   

Is it a good decision to take an education loan if the annual income is less than fifty thousand rupees? Is it easy to repay?

Wondering whether or not you should take an education loan? Find out with expert advice if this is a good decision or not based on your annual income.


Author: sushma    20 May 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

There is no wrong in taking educational loan for your studies. education loan can be paid after completing your education and securing a job. Here, you are not clear about who is getting the annual income of 50000. If you father is getting that annual income, you can get education loan as you can only clear the loan. If you are working and if you want to avail education loan for your higher studies, then you can pay the interest on your loan from your salary. After completing education and securing a good job you can repay the loans. But to get education loan, marks obtained should be very good. There should be no back logs. Based on the marks, bank will decide whether to sanction the loan amount or no.

Author: Venkiteswaran.    20 May 2016      Member Level: Diamond     Points : 4  (Rs 4)    Voting Score: 0

Education loan is not designed like other loans and credits depending on current financial capacity or security. It is a need based credit to facilitate poor, but meritorious students to pursue higher studies and then repay the loan from the earnings they get from the job after successful completion of the course.
So if you area studious, hardworking and meritorious student, but not having sufficient finance to proceed with your dream higher study then education loans are there to support you so that lack of finance alone should not stop you from higher studies if you are otherwise eligible.

So forget about what is your family's income now. You can approach your (family's) bank for an educational loan. Study well and get a good job and then repay the loan in regular instalments fixed by mutual consent under guidelines.

Please read the article "How To Be Prudent To Avoid Education Loan From Becoming A Debt Trap" in this web site, which can help you plan better in this regard.
Best Wishes


Author: Mahesh    20 May 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

If the annual income is less than fifty thousand then it is really hard to pay the loan of any type. I assume the educational loan is of the price more than 50 thousand. And in such condition paying the small EMI for the same would be harder. Apart from that it would be even harder to maintain the lifestyle while the income being that low and also with the EMI running. So you need to understand it is better to take loan when you are earning more. Otherwise taking loan affects your base lifestyle.

Only take loan which you can pay without affecting your lifestyle. Otherwise taking loan compromising the lifestyle could lead to more issues in the life. You may have other options such as doing part time job and the small business to repay for the loan. It may not be much but it should give edge to the existing earning.


Author: Timmappa Kamat    20 May 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

It would not be a bad idea to take an educational loan. The above response seems to be confused about the exact difference between an educational loan and personal loan. Please confirm whether the annual income you mentioned is of your father. In such a case, it would be perfect to opt for an educational loan as the responsibility of repayment would be yours.
Normally banks provide an educational loan to those students who pursue their undergraduate and postgraduate levels in career-oriented courses. That does not mean you can opt for the loan only in engg, medicine or nursing. Courses like BA, BSc and BCom are also covered. If the loan amount exceeds 7.5 lakhs, you will need to arrange a collateral security.


Author: [Anonymous]    20 May 2016      Member Level: Diamond     Points : 1  (Rs 1)    Voting Score: 0

Education is a facility for those meritorious students who wants to pursue higher studies but not able to do the same due to poor financial situation of family.
So, if your father's earning is Rs 50000/- per year and you want to go for higher studies, you can go for it.
But please make sure that your academic qualification must be excellent.


Author: Sheo Shankar Jha    20 May 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

To take an educational loan in order to fulfill one's ambition is not a bad idea. Education definitely improves the skills of the individual - be it a medical education or otherwise. In such cases, skill and talent can be nurtured by availing of the educational loan from a bank.
However, you must make a detailed enquiry regarding the repayment of the loan, EMI structure and the other hidden costs if any. Ensure that recovery of loans should be initiated only after completion of your education and the most preferably upon joining any organisation so that there is no undue stain with respect to repayment of educational loan.


Author: Partha Kansabanik    21 May 2016      Member Level: Diamond     Points : 2  (Rs 2)    Voting Score: 0

As a thumb rule, taking loan is not a good idea if you can arrange the money on your own. However, the concept of education loan has started gaining popularity with the increasing expenses of quality education, or to meet the cost of studying abroad. So, while taking education loan, a candidate must be reasonably assured that the course being opted by him/her would help him/her to get a decently good job by which he/she would be able to repay the loan quickly and easily. This should be the main consideration. Getting Income Tax rebate or similar issues should be of secondary consideration.

Author: Anilkumar    23 May 2016      Member Level: Silver     Points : 2  (Rs 1)    Voting Score: 0

Now a days education is most important in our life and education expenses or fees are going higher and higher, middle class and lower class cannot bear that much amount. Then they go for education loan. You take education loan complete education. When you go for job then you have to repay the loan until you or your father has to pay the interest of loan. In income tax you will get rebate or deduction.

Author: neelam joshi    23 May 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

I believe if someone is really putting his effort for getting sucess and have a believe that he can achieve something and will be able to repay the debts and not make his family to come on the roads, then its a good decision for that person to take a risk becuase that will be a calculated risk.
But if someone is not serious about the issur and just thinking about taking risk in the hope that he will be able to get money by reaching in a foreign country and getting job then uts a total foolish decission becuase earning in foreign country is very difficult for imigrants in these countries if you dont have any special talent or skill.





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