Education helps you move from darkness to light – a famous and accurate statement. You can gain lots of wisdom and earn respect if you access the right resources to fulfil your desires. It is important to be literate as you learn the world and become wise enough to make your decisions. You can also invite better opportunities for employment by studying in the best of schools and completing related courses.
You can borrow an education loan to finance your studies and help you take that big jump. Whether you plan to study in India or overseas, you need funds to meet all the expenses. With loans, you can complete your education without facing a financial burden. The funds are readily available to you when you approach a bank or moneylender.
Personal savings remain intact
Higher education will make you reach for your savings. You may compromise on the quality in case they are not enough to meet the course requirements. A student loan prevents your hard-earned savings from getting exhausted. You can utilise them for emergencies in the future. The loan amount covers 100% of your educational expenses, thus keeping your savings intact.
Double tax savings
Tax exemptions are another advantage of an education loan in India. You can receive an exemption of tax on your education loan interest rate under the Chapter VI-A of Section 80E of the Income Tax Act of India. The interest payments made for the loan will fall under ‘Deductions.’ You can also get a concession of 0.5% on the tax collected at the source. These tax benefits on loans should alone drive students to take one.
Customised loan products
The loan market has grown over the few years. Lenders have recognised the demands for loan products catering to students pursuing education from a particular course, college, or country. You can assess your education loan eligibility and approach financial institutions like public sector banks, private banks, and Non-Banking Finance Companies (NBFCs) for specific and customisable loan products to study in India and abroad.
Repay after your education
The repayment for a student loan in India begins at the end of the study duration. Lenders also give additional six months to find a job so that students can take responsibility for the repayment. It ensures that the burden does not fall on the parent or the student during the study period.
When you apply for a student loan, it teaches you to learn to manage your finances. The repayment of the loan starts after graduation giving students ample time to figure out a repayment plan. You can decide the amount to spend, save, and repay towards the loan. It makes you financially independent while also building your credit history.
You can use the education loan calculator to plan your repayment and decide on an EMI that suits you financially.