5 benefits of taking an educations loan

 

An investment in knowledge pays the best interest. Be that investment in education in India or abroad, and for executives or for students. As the world becomes a global village, the opportunities for students to learn in prestigious institutions reach sky high. Students can then apply to the schools of their choice, learn there, and land at their dream job.

 

At times, getting in the school of your choice may seem financially impossible but various financial lenders exist to tide over this obstacle.

 

An Educations loan helps a lot to fulfill these aspirations. Students don’t need to look further than a reliable NBFC lender to fund their education.

In this article, we let you know the benefits of taking an educations loan:

 



1.    Saves your financial assets for the future

When you apply for educations loan, you keep your important assets from being liquidated to fund your child’s learning. This way you can save your investment portfolio, your retirement plans, and other assets from being used up. These assets can then be used to safeguard your post-retirement life or your future ambitions in general.

 

2.    All expenses covered

Studying at top schools not only requires you to pay your college tuition fee, but also to tend other vital expenses. Along with the tuition fee, the educations loan covers your other expenses like, the library fee, the exam fee, travelling, accommodation and stationery expenses. An education loan holistically covers the total cost of learning at the school of your choice.

 





3.    Tax deductions on loans

According to Section 80E of the Income tax act, the interest paid on the education loan will be deducted for up to maximum period of 8 years. If you pay back the loan within 8 years of completing your education, you can avail the benefit of saving the interest applied on the principal amount of your student loan. This is a healthy opportunity for the students to build up their savings, and use it to buy assets for themselves.

 

4.    The moratorium period

Moratorium period is the free period for the borrowing students before they begin to pay the installments of the loan. Usually, the moratorium period lies between 6 months after getting a job to 1 year after completing education, whichever comes earlier. Students can use this as a buffer period to make a plan on how to pay back the education loan.

 

5.    Inculcates good financial habits

Once a student takes an Study loan, he should condition himself mentally to pay it back in future. This is a perfect opportunity for the student to plan his financial life and pay the EMIs on time, once he starts to earn. It is a perfect exercise to earn a good credit score in case he has to avail other types of loans in the future.

 


So, here are 5 benefits to securing an educations loan for your education, in India or abroad. We would advise you to look at the eligibility criteria of the potential lenders thoroughly before deciding on one and enrolling in a course at a school of your choice. A good NBFC lender will help you plan your graduate studies better without mounting any financial strain on your shoulders.

 

Related Article - Looking at 4 important things to consider before taking an education loan

 

Comments

Post a Comment

Popular posts from this blog

MBA specializations that you can do in India with the help of study loans

Image
  For the last 15-20 years, the number of students who are opting for an MBA after their graduation has increased rapidly. Reasons behind this sudden increase include demand for candidates with a specialization, lack of job opportunities for basic degree holders, and to increase one’s market value. This has caused students from all the streams to go for an MBA that would give some weightage to their profile. However, unlike earlier times when only a plain MBA degree used to be offered, there are different specializations in MBA that are being offered by B-schools to their students based on their field and requirement. We have listed below a few types of MBA specializations that you could apply for with the help of study loans : 1.       MBA in Digital Marketing One of the most sought after specializations, an MBA in digital marketing is offered by all of the B-schools in India. Digital marketing has made it easier for brands to connect with potential customers using the internet.
Read more

Here’s all that you need to know about the parental involvement in CBSE schools in Gurgaon

Image
  Gurgaon is known to have the best ranked CBSE schools in the country, with experienced faculty members who are also known to provide quality learning methods that result in upgrading the education level.     The one aspect that makes all the CBSE schools in Gurgaon unique is their constant efforts of encouraging parental involvement. Wondering what is parental involvement in schools? Don’t worry, this article will provide you with all the information regarding parental involvement. Read on to find out how.                                                                                                            What is parental involvement all about in school? It means that parents wholeheartedly contribute to the education process of their child. Parents contribute by volunteering in classrooms and helping with organizing functions. Schools that give utmost importance to parental involvement believe that it leaves a positive impact on the academic and overall achievement le
Read more

4 questions to ask yourself before taking an education loan for studying abroad

Image
  Education loans have helped millions of middle-class students to pursue their higher studies in prestigious universities around the world. It is a boon for the ones who can study further in their fields but do not have funds to pay their higher education expenses. In recent times, education loans for studying abroad have become more accessible, which have resulted in students actively applying for such loans. In this article, we will tell you about 4 questions that you should ask yourself before getting an education loan for studying abroad , and thus, be a responsible borrower.       Do I satisfy the eligibility criteria, and do I have documents to prove it? This is the first question you should tackle. If you don’t stand eligible for an education loan for studying abroad, the other questions turn invalid. So, know the education loan eligibility criteria of the lenders. See if you fulfil those eligibility criteria. And gather proofs or documents that prove your eli
Read more