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 of 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, you can avail 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 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 education 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 of 6 months from the date of starting a new job.
- An added advantage of an education loan is that you can avail 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.
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 do 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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