Government - owned banks have decided to provide cheaper education loans to girls students by extending a special interest rate discount of at least 0.5 percentage points (0.5%) on the card rate. The Indian Banks Association, which groups 27 public sector banks, on February 4 asked its members to make available new loans to girls at concessional rates, setting a borrowing limit of Rs 10 lakh for studies in India and Rs 20 lakh for education overseas.

The terms of the loans usually require any interest or principal payments after graduation. Read the terms of any and all loans before you sign. Make sure you understand those terms and what your repayment schedule and fees entail. Ask for assistance in interpreting the fine print if you are having trouble understanding it.

We have seen that a lot of students are very debt-averse.  If you have been accepted to a good program, your chances of getting a good job are very good and paying off the loan is not that big an ordeal as it seems.  So, if you do get admitted to a school of your choice, we would recommend that you explore this funding alternative.