In Pursuit Of Knowledge

“As a society, we can and should invest more money in education”

- Daphne Koller

College and Higher Studies are part of the Indian Dream. It shouldn’t be part of a financial nightmare for families. And therefore, easy credit is made available by government and few non-government entities for all those willing to pursue higher education.With college fees increasing every year, especially for higher education courses, many have no option but to opt for education loans. Education loans run on the basic premise of study now and pay later, which is a deferred payment. The Indian banking sector began aggressively promoting and lending education loan from the year 2001 onwards. Currently, most leading banks in India, public sector as well as private, offer both education as well as vocational loans to students for a regular degree as well as post-graduate courses by recognised universities in India and abroad. The government of India provides educational loan through 27 nationalised banks. Banks and other lenders together disbursed around ₹20,000 crore in education loans in FY17, up from around ₹17,000 crore a year ago. An interesting feature of an Education loan is that it not only funds your higher studies but also helps in saving tax. The interest paid on the education loan can be claimed as a deduction, as per Section 80E of the Income Tax Act of India, 1961.

The Growth in Education

Sector As per a FICCI research report, India presently has one of the largest enrolments in tertiary education across the world. That said, by 2030, India will be amongst the youngest nations in the world with nearly 150 million people in the college-going age group. Currently, as per IBEF report, in FY 2015-16, the education market was worth about USD 100 billion and is expected to reach USD 180 billion in FY 2019-20. The higher education system in India has undergone rapid expansion and will result in increased lending of education loans to the needy aspirants.