5 reasons why education loans are amazing.

For many, an education loan is a life saver! It has helped so many students realize the future they’re always dreamt of, this is despite the ever increasing cost of education loan in India & the world. However, many aspirants are still very skeptical of these finance solutions. They are afraid of going into debt. Keeping this in mind, the following article will highlight 5 reasons why these loans are amazing and worth considering. Have a look!

1. They provide 100% financing.

If you’ve been wondering how to meet the cost of your education, just imagine getting 100% finance! Wait, why stop at imagining? Just opt for an education loan and get it for real! Most non-banking financial companies & some private banks will be more than filling to foot the entire cost of your education. So if you were worried about the ever increasing cost of education, just relax and start looking for student loans, they are the answer you’ve been looking for.

2. Cover education-related expenses too!

More than cover your entire course fee, most lenders will go a few steps further and provide financial solutions for all your other education-related expenses as well. From the cost of your entrance exams to the proof of funds required for a visa (in case of overseas education), an education loan will have your back! You can even finance the purchase of a new laptop, your study material & books, travel, and even living expenses.

3. Don’t have to repay immediately.

An Education Loan in India is probably one of the only finance solutions that allow you to start repaying the loan much after getting the disbursal. Most other loans will require you to start making payments right from the first month after getting the disbursal. However, with a student loan in India, you don’t have to pay even a single installment until finishing your course or found a job. Some lenders will give you 6 months after these events too!

4. Tax benefits.

On one hand, an education loan in india helps you pursue your dreams; on the other hand, it helps you save an amazing amount of taxes. This is made possible by section 80E of the Indian Income Tax Act that states that any interest amount paid in a year towards an education loan can be used to claim deductions against the borrower’s taxable income. The quantum of deductions is exactly equal to the interest amount paid in the year without any capping.

5. Low interest rates.

If you were to borrow a personal loan to cover the cost of your education, you’d have to deal with interest rates as high as 10 or 22 percent. In comparison to this, an education loan will be made available to you at rates as low as 10 to 16 percent. This can result in very affordable finance and loads of savings.

We hope this has been informative and gives you the impetus needed to opt for an education loan to cover the cost of your studies. Good luck and all the best, study hard!