With the increase in the cost of education each year, funding higher studies have become a matter of concern for parents and aspiring youth. Having big dreams but not having enough financial support has been troubling the youth of the country for quite some time now. This is where education loan comes into the picture and saves bright students from compromising on their desires due to shortage of funds.
Education loan in India helps you in not just funding the course of your choice, but also covers the cost of your entire education. From expenses of travelling to a new country for further studies to the cost of the essentials needed, everything is covered by such a loan. So, in order to find out more about the benefits of getting an education loan keep reading below.
The numerous benefits of getting an education loan
One of the major advantages of getting an education loan is that you will not be expected to pay the amount instantly after completing your course.
Education loan gives you enough time to accumulate the amount and then repay. You can easily find a job first, make a substantial savings and then start paying back the amount.
Individuals who claim the loan have an added advantage of claiming deduction on the entire interest amount of the loan. However, this can only be done when the person who is claiming the loan is repaying the amount under section 80E of the Income Tax Act. In order to avail the tax benefits, individuals have to fulfill certain conditions which are:
• The loan either needs to be taken from a scheduled commercial bank or the two gazette financial institutions. Taking an education loan from any other institution will not allow you to get the tax deduction.
• Secondly, the loan can only be taken to fund higher education, which is after passing your senior secondary examination.
One of the most attractive features of an education loan is the low interest rate it offers. In comparison to any other loan, education loan has low interest rates as public banks all over the world subsidy it. This is primarily done to improve the standard of higher studies all over the world.
Education loan has great repayment options as well. Individuals taking the loan can return the amount after securing a job. The burden on both parents and students are thereby reduced, making it easier to pay the amount over a long period of time, conveniently.
Education loan in India helps you in not just funding the course of your choice, but also covers the cost of your entire education. From expenses of travelling to a new country for further studies to the cost of the essentials needed, everything is covered by such a loan. So, in order to find out more about the benefits of getting an education loan keep reading below.
The numerous benefits of getting an education loan
One of the major advantages of getting an education loan is that you will not be expected to pay the amount instantly after completing your course.
Education loan gives you enough time to accumulate the amount and then repay. You can easily find a job first, make a substantial savings and then start paying back the amount.
Individuals who claim the loan have an added advantage of claiming deduction on the entire interest amount of the loan. However, this can only be done when the person who is claiming the loan is repaying the amount under section 80E of the Income Tax Act. In order to avail the tax benefits, individuals have to fulfill certain conditions which are:
• The loan either needs to be taken from a scheduled commercial bank or the two gazette financial institutions. Taking an education loan from any other institution will not allow you to get the tax deduction.
• Secondly, the loan can only be taken to fund higher education, which is after passing your senior secondary examination.
One of the most attractive features of an education loan is the low interest rate it offers. In comparison to any other loan, education loan has low interest rates as public banks all over the world subsidy it. This is primarily done to improve the standard of higher studies all over the world.
Education loan has great repayment options as well. Individuals taking the loan can return the amount after securing a job. The burden on both parents and students are thereby reduced, making it easier to pay the amount over a long period of time, conveniently.
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