Q1. What is the eligibility criterion to avail a loan?
A. A borrower should be/have:
Q2. What are the purposes for which I can borrow money?
A. You can borrow money to fulfill your financial requirements for payment of your kid’s school fee, to enroll for online training/professional courses, skill development/vocational training courses. Loans are also available to corporate employees for any of the purposes not limited to a vacation, purchase of household appliances, wedding, medical expenses or anything else.
Q3. What is the minimum and maximum loan amount?
A. It is INR 20,000 and INR 500,000 respectively.
Q4. What is the minimum and maximum loan tenor?
A. The minimum loan tenor is 6 months while the maximum tenor can be up to 36 months.
Q5. How do I apply for a loan?
A. Loan application process includes the following:
1. For Salaried individual:
2. For Self-Employed Professional/Business:
Q6. Is it mandatory to have current address and permanent address as same?
A. No. However, it is mandatory to upload at least one of the address proof documents (Passport/Aadhaar/Voter ID/Electricity Bill/Water Bill/Landline Telephone Bill) that has the address same as your current address.
Q7. Is it mandatory to mention my office email address? What do I need to do if I don’t have an office email address?
A. Yes, office email address is mandatory if you are a salaried employee. Please ensure that you enter the correct office email address as you will receive an OTP on the same for verification.
In case you don’t have an office email address, you can mention your manager/HR’s office email address.
Q8. Why am I required to link my Social and Bank account?
A. There are multiple benefits of linking your social and bank accounts:
Q9. Can I apply for more than one loan at a time?
A. No, you can apply for only one loan at a time, and once it is repaid in full, you shall be eligible to apply for another loan.
Q10. My credit score is weak. Can I still apply for a loan?
A. Yes, we consider our internal credit scoring model, your payment and default history (if applicable), and any other mitigating circumstances. However, we reserve the right to ask for supporting documentation so that our underwriters can get a better picture of your ability to repay. The final decision on whether to approve a loan application or not rests with our Lenders.
Q11. Can I have a Co-Borrower?
A. Yes, for certain type of loans/certain category of borrowers, having a co-borrower is mandatory.
Q12. I receive my salary in cash and don’t have a pay slip. Can I apply for a loan?
A. No, you cannot apply for a loan if you don’t have a pay slip issued by your employer and your salary is not credited through bank transfer.
Q13. What is the criterion for interest rate determination?
A. We have a proprietary credit model which will assess your risk profile based on the details submitted by you, your credit score and various other parameters. You will then be assigned any one of the categories between ‘A and F’ based on the risk assessment, with ‘A’ being the low-risk profile borrower and ‘F’ being the high-risk profile borrower. Further based on the risk profile assigned, you will be eligible to avail loan at interest rates ranging from 11.50% to 25% p.a.
Note: These interest rates are subject to change from time to time.
Q14. Will I receive any notification for loan approval?
A. Yes, once the Lender approves your loan application you will receive a notification on your registered E-mail Id.
Q15. In how much time will the loan amount be disbursed?
A. You will be required to sign an agreement (online/offline agreement) with the Lender and provide NACH debit mandate for EMI payments, post which the requested loan amount will be disbursed to your bank account/directly paid to the institute in case of educational/skill development loan.
Q16. How can I repay the loan? What will be my EMI due date?
A. We will register your bank account for NACH mandate for loan repayments. Your EMI due date will be decided by the Lender and the same will be communicated to you in the loan agreement. For loans disbursed through TachyLoans, the normal EMI date is 10th of every month.
Q17. Is it compulsory to give NACH debit instructions for loan repayment?
A. Yes, this is a pre-disbursal condition.
Q18. Can I repay my loan before the end of loan tenure fully or partially? Are there any prepayment charges?
A. Prepayment of loans will be at the discretion of the lending institution.prepayment charges will be decided by the lender and the same will be communicated to you in the loan agreement.(Conditions Apply)
Q19. What are the late payment charges in case I miss my payments? Does my late payment get reported to the Credit Bureaus?
A. A cheque/NACH bounce charge of INR 500/- per instance of dishonor will be levied in addition to penal interest @ 3% p.m. on the overdue amount till date of payment, subject to a minimum of INR 500/-. Yes, your payment history gets reported to the Credit Bureaus.
Q20. I did not receive an OTP on my phone. What should I do?
A. This may occur because of DND activation on your phone, use of dual SIM or mobile network issue. Kindly check for these. If you still did not receive the OTP, feel free to contact us at 080-48529900/+91-9108900900.
Q21. Who is eligible for deduction us/ 80E?
A. Education loan should be taken by Individual (not to HUF or other type of Assessee )
Q22. Is loan taken in name of any family member is eligible for deduction?
A. NO, Loan should be taken by Assessee HIMSELF. If loan is taken in name of any relative then he/she is not eligible for deduction.
Q23. What is eligible amount?
A. The amount eligible for deduction is repayment of education loan interest.
Q24. Which expenses are covered?
A. The loan includes not only tuition or college fees but also other incidental expenses for pursuing such studies like hostel charges, transport charges etc.
Q25. How much amount is deductible?
A. There is no limit for amount of repayment of interest. Unlimited amount of interest can be deducted under this section. However there is no benefit available on the repayment of principal amount of the loan.
Q26. If loan is taken / money is borrowed from friend or relatives to repay the loan then same is deductible?
A. You can deduct the entire interest amount from your Taxable Income only.
Q27. Can loan be taken for any education?
A. The loan should be taken for the purpose of higher education and
Q28. Can higher studies be pursued outside India?
A. There is no condition that the course should be in India.
Q29. For what tenure / how long deduction can be claimed?
A. This deduction is available in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest is paid by the assessee in full, whichever is earlier.
Initial Assessment year means previous year in which assessee starts paying the interest amount.
Q30. What is meaning of higher education?
A. Higher education means " any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority to do so;
Income tax department has added (W.e.f. A.Y. 2010-11) additional fields of studies (including vocational studies) pursued after passing the Senior Secondary Examination or its equivalent from any school, Board or University recognised by the Central or State Government will also be covered under deduction in respect of interest paid on loan taken for higher education.
Q31. Can loan be taken from relatives?
A. The loan should be taken from any financial institution or any approved charitable institution. (in simple main Banks are covered). Interest on Loan taken from relatives or friends will not be eligible for deduction under section 80E.
Q32. What is meaning of charitable / financial institution?
A. Aapproved charitable institution means an institution specified in, or, as the case may be, an institution established for charitable purposes and [approved by the prescribed authority] under clause (23C) of section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G;
Financial institution means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;
Q33. Can loan be taken for relatives?
A. The loan should be taken for higher study of himself or studies of relative. Earlier to previous year 2006-07 the above deduction was available only for Interest on loan taken and repaid by the assessee for his own studies.
Q34. Who is relative?
A. Relative under this section means the in relation to an individual, means the spouse and children of that individual the student for whom the individual is the legal guardian.
Earlier to previous year 2006-07 the above deduction is available for loan taken and repaid by the assessee himself for his studies only but after finance act 2007 ,"the deduction is available for the purpose of higher education of his relative also. relative, in relation to an individual, means the spouse and children of that individual or the student for whom the individual is the legal guardian.
There is no deduction available for repayment of principal ,this deduction is available to only for interest repayment.
This deduction is available for individual only and not for other type of assessee.
The loan should be for pursuing higher studies means loans taken not only for tuition or college fees but also loan taken other incidental expenses for pursuing such studies like hostel charges,transport charges etc etc is also covered under this deduction,
There is no condition that the course should be in India .
80 E (deduction on Interest on study loan) was available to parents and person himself but now after finance act 2009(2) it is available to Legal guardian also.