I advocate debt free life. Still, I strongly support taking educational loans.
Spending towards education is not an expense, it is an investment. It will educate the child and expand the mind. He or she can take right steps towards life, career etc., People take Educational loans for high-value professional courses. The returns are also equally lucrative for such courses. The child will get an employment opportunity with the education gained. Needless to say that employment will pay him or her for lifetime. Education uplifts not only the individual, but also the entire family and the generations to come.
I took an education loan for INR63000 for my MBA course in ICFAI University. My MBA in International Business gave me a competitive edge while looking for a job. I got a opportunity to work with Standard Chartered Bank. It opened the door of opportunities and steady income. That was a huge leap for a first generation graduate like me.
In India, no margin money or security required for educational loans up to 4 lakhs. Third party guarantee is required for loans above 4 lakhs and up to 7.5 lakh, A collateral is required for loans above 7.5 lakh.
Having said that, it is very important to repay the loan promptly. Bank lends you the public money. The banks allow the student to start repayment once the course is over. Some banks allow additional 3 months to 6 months of grace period to start the repayment. In my opinion, this is a good debt. Find a guide on educational loans here.