From Tax Benefits to Savings Protection, Why Education Loans Matter?

You may have heard it many times in your academic pursuit that finance is the lifeblood for the sustenance of education for students. The entire lifestyle of your academic sojourn hinges around it, along with other attributes, such as your dedication, perseverance and dream to accomplish something academically better in your life. The point is, education needs funding for its persistence, and there is nothing better substitute than education loans these days to fund and support your academic journey in a foreign land or in your home country.

Benefits of education loan to study abroad

Savings protection – If you have savings in your bank account that you want to keep for rainy days, education loan can give you safety net to those savings, so that you can maximize your savings for addressing long-term financial goals, such as home purchase, child’s marriage or retirement corpus.

Covers course expenses – Education loan to study abroad is not only helping you with covering fees associated with your academic pursuit in overseas land, but it also gives financial relief by covering expenses accompanying exam fees, hostel fees, lab fees, accommodation charges and so on. Moreover, traveling expenses and costs related to study materials etc. are also managed by it. Managing these expenses on your own, without education loan, can be exceedingly daunting task for any student.

Tax exemption benefits – As per the prevailing regulation of the Indian government known as Section 80E of the Income Tax Act, students or parents taking education loans for overseas education of their child/children are allowed to have tax exemption benefit up to certain percent, as per the regulation governs. The loan applicant qualifies income tax deduction which can be claimed for nearly 8 years.

Moratorium Period – This is the time duration granted by a bank to the loan-borrower. Under this provision, the borrower is given a leeway of not repaying the borrowed fund, for a period ranging from 6 months to one year (from the date of completion of the course), as per the discretion of the bank. According to analysis of this facility, the borrower has sufficient deadline for searching for a new job and settle in an employment, earn well and repay the loan amount in compliance with the deadline.

Creditworthiness – This is one of the most important benefits associated with education loans that you can enjoy. Not only the finance helps you bankroll your costly foreign education but it also gives you an immense advantage like improving your credit score. The benefit of this advantage is that you become qualified applicant, in case you opt for another loan later in future. As a matter of fact, most of the loan-financing companies in India prefer the loan applicant who has an impressive credit history, something acting as a fine catalyst to your feather in becoming the qualified applicant regarding a new loan.

Looking for more assistance in education loans to study abroad? Why don’t you consult our team and have this sorted out without any hassle? Rest assured, we will help you out of your financial woes with distinctive professionalism so that you can accomplish your dream education abroad without worrying for finance.

Our Related Blogs:

A Guide to Education Loan without Collateral for Indian Students