Student Loan: Definition, its works and types.

Student loan, as the name suggests, this loan is related to the students. Today our topic of discussion will be student loan. Today, student loan is given to students in different countries to make education easily available and students are getting the benefit of this initiative. In this revolutionary world of education, this loan has proved to be a boon.

What is student loan: definition

Student loan is an agreement between the lending bank and the student, under which the bank lends money to students at a low rate of interest, so that the student can complete college or university education. After doing this money was repaid by that student with interest. The main purpose of the student loan is to provide the students with the materials used in studies such as books, tuition fees, living expenses and all other materials which are necessary for the students in their studies. Student loans are available at different interest rates in different countries. Provided at| Student loan maximum used to get university education.

How do student loans work?

The student is the only one given by the government or private institution through which the student completes the university education and gets the professional degree. Student loan also works like all other loans but in this loan the loan is repaid at a low level of interest rate. student loan current provided by both government and private institutions in different countries. This loan is shared under an agreement between the institution and the student. The main reason for the demand for this loan is that it is available at a low interest rate that is availed by students. goes to Gaya and at this time the student is unable to get a university education. Live in such a way that they do not have the means of employment.

Types of Student Loans:-

Student loans cannot be divided into main parts. Although it has been divided into various parts by many websites, which is unfair. Our team, after researching from various places, has come to the conclusion that student loans can be divided into two main parts-

1. Loan with direct subsidy-

This loan is the one, through which loan is given to the students for pursuing graduation, but this loan is interest-free, that is, in this loan, the students are given interest-free while giving the money back to the institution.

2. Direct loan without subsidy-

This loan is also given to the students for obtaining degree and education in subjects like graduate, undergraduate and professional, but in this loan, the student repays the money along with interest.

FAQ ( Frequently Asked Questions )

1. How much loan can a student get?

There is no fixed maximum limit on the amount of money that can be given as loan to students through student loan. The student can take a loan according to his comfort and education budget. Maximum ₹ 20 lakh is fixed as loan for NRI students and ₹ 30 lakh for premium institutions.

2. Which bank is better for education (student) loan?

Not all students get the same education. Some students take education in their home country while some students go abroad for education. State Bank of India provides the best student loans at low interest rates. If the student comes under the category of OCI then what is the eligibility criteria for taking Punjab National Bank loan? is suitable for If you want to pursue university education in countries like Canada then ICICI Bank will be most suitable.

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