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.

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A Guide to Education Loan without Collateral for Indian Students


How Can Education Loan Help You Achieve Your Dream Study Abroad?

The virtue of an education loan to study in Canada, New Zealand & Singapore or in any foreign country has its own degree of trust, dependence, and validity for any student nourishing in their dream the aspiration of attaining a higher education overseas.

Reasons as to how an education loan can help you achieve your dream education abroad have been jotted down in the following manner for the purpose related to improving your understanding of how adequate finance can serve your foreign education needs greatly.


Means to cover up your miscellaneous cost

Besides covering up the cost of the course, the education loan is a great financial support for funding the entire expense of your education in an overseas country. It is believed that such financial support can cover up to 90% of the cost of your study compared to what an individual student with low budget can ever afford.

Education loans help you greatly to deal with expenses like –

  • Tuition fees, hostel expenses.
  • Fees related to exam, lab and library.
  • Study materials.
  • Traveling expenses.
  • Accommodation/cost of living.

Relief to Parents

Parents looking for adequate financial support to fund the cost of education of their children get immense relief from the education loan, considering a larger fraction of their cost is sufficiently compensated with the loan. This, in turn, accommodates parental needs, especially in a time when their existing financial situation is not healthy enough to afford the exorbitant higher education abroad for their children.

Exemption to tax

Indian taxation law 1961 permits the borrowers of the education loan to enjoy tax exemption under its section, 80 E. The tax benefit earned thus helps the borrowers to easily pay back the principal part of the loan excluding the interest rate.

Improves Your Creditworthiness

Students borrowing education finance can have a better likelihood to earn creditworthiness in the eyes of the bank sanctioning the loan. Repayment of the borrowed loan as stipulated by your lender will not only improve your credit score but also the relationship with your lender, thus facilitating your chance to avail the further loan in future.

Affordable Loan At Easy To Pay Interest Rate

Education loans these days come at an attractive rate of interest. They are affordable to an extent that parents or students can avail the necessary funding under a flexible repayment schedule, which means – no chance to strain your nerves with repayment cycle to your lending bank.


An education loan is arguably one of the most important means for a student to fund the cost of his/her dream education abroad. It is particularly beneficial for the students whose financial condition is not healthy to afford the cost of higher study abroad. This explains as to why adequate financial aid can help you actualize your overseas education.

Need an education loan?

Consult team Saphairs India. We will be glad to assist you in whatever professional manner feasible. We have financed the “interest-simplified” education loans to many Indian students. How about you being the next recipient?

More Blogs:

A Guide to Education Loan without Collateral for Indian Students

How Education Loan Consultant Can Fund Your Study Abroad Mission