How do student loans work (India)?

In India, education loans are offered by various banks and financial institutions to help students finance their higher education. Here's how education loans generally work:

1. Application: You apply for an education loan from a bank or financial institution. You will need to submit your admission letter, mark sheets, and other relevant documents, along with your loan application.

2. Loan approval: The bank or financial institution reviews your application and assesses your eligibility for the loan. If you meet the eligibility criteria, the loan is approved.

3. Loan disbursement: Once the loan is approved, the funds are disbursed directly to the educational institution where you have secured admission. The loan amount can be used to pay for tuition fees, hostel fees, purchase of books, equipment, etc.

4. Repayment: Repayment of the loan typically begins after you complete your education, or after a certain grace period, depending on the lender. You may be required to make regular monthly payments, usually for a period of 57 years or more, depending on the loan amount.

5. Interest and fees: Education loans generally carry a certain interest rate, which can be fixed or floating, depending on the lender. Some lenders may also charge processing fees or other charges associated with the loan.

It's important to carefully review the terms and conditions of the education loan before applying, and to understand the repayment schedule and interest rates involved.