Noteworthy Things to Know Before Securing a Student Loan
Posted by ankita kumari
from the Education category at
17 Dec 2024 05:47:02 am.
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Advantages of Education Loans
According to latest reports, the number of Indian students studying abroad is estimated to have doubled in the past five years to around 13.4 lakh. This is due to the many benefits that educations loans by reputed financial institutions have to offer:
Financial Support
An education loan acts as a bridge, helping students cover tuition fees, rental fee, and other expenses without exhausting personal savings or family funds. Whether you’re pursuing higher studies locally or planning to study abroad, education loans provide the necessary financial backing.
Tax Benefits
Under Section 80E of the Income Tax Act of India, borrowers can claim a deduction on the interest paid on education loans, significantly reducing the financial strain on parents. Thus, it is preferred to take an education loan even if you have surplus funds.
Flexible Repayment Plans
Education loans often come with borrower-friendly repayment terms, including a moratorium period during the study tenure and a grace period after graduation, allowing students to start repayment when they secure employment.
Competitive Interest Rates
Compared to other loan types, education loans generally feature lower interest rates, making them a cost-effective way to fund higher education. Borrowers seeking a student loan in India benefit from the competitive rates offered by many lenders.
An education loan is a valuable tool for securing your future and achieving academic goals. To navigate the process effectively, research lenders, compare interest rates, and understand the terms and conditions thoroughly. Being proactive and well-informed will help you make the most of this financial resource, ensuring a smooth and successful journey toward your dream education.
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