The quality of education plays a vital role in determining the financial and psychological benefits one draws from their professional life. Job-oriented degree programs at prestigious universities are specifically designed to equip students with tools needed to build a stronger tomorrow.
However, this quality education comes at a steep cost and often, meritorious students facing financial constraints are deprived of the shot at a better future merely due to lack of finances. Education loans are a viable way to fill the gaps that , grants and family resources leave behind. Most people prefer education loans over self-finance since the assurance of timely fee payment and inclusion of complete cost of education associated with education loans can seldom be derived from self-finance.
With the cost of education on an exponential rise and the importance of quality education widely recognised, many have come to see education loan as an investment since it comes packed with assured returns and excellent benefits, some of which are:
Income Tax Benefits
Tax Benefit is one of the most important advantages of that are taken for courses in India and abroad. It is a great way to save money while securing a better future for your children. This is one aspect which makes education loan a preferred choice over self-financing.
Education loan applicants are eligible for deductions on interest paid on the loan under Section 80E of the Income Tax Act of India, thereby lowering the rate of interest. The deductions under this section can be claimed for a total of 8 consecutive years including the year in which the loan is taken in or till the interest on the loan is fully repaid, whichever occurs earlier. It must be noted that only loans taken from gazetted financial institutions are eligible for these deductions.
Any Indian individual can claim deductions on interest part of the education loan availed for self, spouse, children or any other child of whom the individual is a legal guardian. It must be noted that education loans taken from friends and relatives are not eligible for tax deductions under Section 80E.
Improves Credit Score
Applying for an education loan and complying with the repayment terms can significantly improve your credit score, a parameter that plays a vital role in addressing financial needs arising in future. Approval of loans and credit cards are subject to a decent credit score, or CIBIL score. Low credit scores are associated with economic instability and can mar an individual’s credit reputation.
快穿系统女主深吻hIn addition to loan lenders, employers too associate high credit scores with trustworthiness. Repaying your loans on time improves your credit worthiness, a deciding factor for approval of any home, car, personal or other loan that you may avail in future. When you apply for a loan, the bank officials examine your credit history to determine your credit worthiness, based on which your loan can be approved or denied.
快穿系统女主深吻hDuring the course of higher education, students incur various additional costs besides the tuition fee. These costs include, but are not limited to, one-time registration fee, library fee, lab and equipment charges, living and personal expenses etc.
Education loans are largely comprehensive and extend funds that students may need to support a healthy lifestyle in a foreign country. This lifts the financial burden off parents’ and students’ shoulders and timely fee payment to the university/college ensures that a student’s study period advances without any bumps.
Various other benefits of Education Loan are:-
The ever-growing competition in the has worked in favour of the aspirants. The process has become increasingly transparent and hassle-free. Many banks even offer doorstep service and flexible repayment terms to beat the rising competition. It is, however, advised to explore various options and examine the product benefits of every bank before zeroing in on one. Contact India’s leading education loan providers through .
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