Ruchi Verma To achieve your dream and get the best education, you can avail education loan by keeping a few points in mind. In this article, we are sharing pointers to keep in mind when going for a loan.
Sometimes getting a bachelor’s degree is not enough. You may need to study further to enhance your chances of getting a good job or getting an edge over the rest of the competition. Many students need to study further and want to enroll in advanced courses, but not all students have the funds to help them do this easily. To help a student out in their endeavor for future security, financial institutes are now offering education loans. An education loan will help you narrow the gap in finances that was stopping you from joining the course of your dreams.
An education loan is what you need to improve your career scope. If you are someone who is willing to upskill yourself or make an educational plan for your ward, you can avail of an education loan as well to improve your career growth chances.
How can an education loan be the savior for you to build a career?
The education sector has seen great reforms in terms of the quality of education as well as the variety of courses being offered. But, unfortunately, that makes the education cost a tad bit high for most students, and these students can opt out of the education loan to lend a supporting arm.
Key points to keep in mind to make the best use of your education loan:
- Education loans cover the course as well as charges that go along with it. It also covers your accommodation charges, study equipment, coursework material, travel, and other expenses that assist you in pursuing higher education. The education loan amount is based on these expenses, and the interest charges will be calculated based on your family income.
- Any student can avail of this loan with their parents or guardian. A student is the primary loan applicant for an education loan, and parents are the co-applicants. Such loans are offered to students who are willing to pursue advanced courses in India or abroad.
- One key preparation point is that you need to arrange all your important documents and prepare a folio for the same. The banks will require documents such as acceptance letters, course details, course fee structure, previous mark sheets, documents that indicate the median income of the family, and tax returns as well along with the KYC documents.
- The best advantage of an education loan is that the repayment does not begin until and after the student has a job. The repayment begins shortly after the conclusion 6 months from the date of starting a new job.
- An added advantage of an education loan is that you can avail of a deduction of the interest amount under section 80E of the Income Tax Act, 1961nt. This tax benefit will help you save on the income tax you pay.
Conclusion
An education loan is an important step in showing your commitment to your future and is an investment in yourself. Before you think of applying for an education loan, you should gain clarity on what kind, of course, you want to pursue and where you want to want to pursue it. You can consult professionals to assist you with this process.
Also Read: Financial Literacy Tips
© Ruchi Verma
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With education loan, one can achieve his/her dream. Today education is becoming very expensive and getting a loan will sure make the path within one’ reach.
Ask me how much beneficial can be the educational loan. After being separated from my husband, the first thing came in my mind is continuing my son’s education. And this was the saviour actually. Thanks for such a helpful post.
With burgeoning costs of education. Higher education is an expensive proposition. An education loan is definitely becoming a necessity for funding education. But it is truly an investment to make for better career growth.
I knew about education loan but never knew the benefits associated with it. This is a great way for middle class families to afford quality higher education for their children.
Great information Education loan is very important and useful for students. these information will help me in future for my kids.
That’s so right. I too had taken an education loan for my higher studies and was glad I took that. later I could use the tax benefit on that. It is such an important topic all students must know.
This is an insightful post regarding educational loans and it’s importance in career. Most students dream to get quality higher Education and it’s been possible only because of these financial aids
Education loan is a boon when going for an expensive course or overseas education opportunities since it covers almost all costs. The income tax waiver is surely an advantage.
An education loan does help towards achieving the goal. It eases the financial burden so that the student can focus on studies. Thanks for explaining the details.
Thank you for sharing this information about education loan as it is really important to study further in every field and this detail forces really helpful for all the students who wants to study further
This is very informative post Ruchi. Today education loan is not a big deal in fact students need to take one for higher education if they would not like to burden their parents as it has lot of benefits too like no tax deduction.
Quite a comprehensively covered article about education loans. I remember during my college days there were many doubts about the same in my mind and cause of it I had opted for another stream which resulted in time waste. This information and facility need to be utilised by aspiring professionals to fund their education.
I think educational loan is the best thing to take and study. I took it during my masters and it took off the burden from my family so much.