Among many categories of debt, education loan is one of them which helps students to accomplish their studies either in India or in foreign country.
With this financial support, provided at low-interest rates, youngsters have been facilitated by the government to pursue their dreams.
Here are key benefits of education loan, as per PolicyBazaar.
Anyone can opt for Education loan to study in India for graduate, post-graduate, professional and/or doctoral courses/degrees.
Loan cannot be assigned to the student alone, the parent or guardian needs to be co-signor for the loan.
Female students are usually offered discounts and/or lower interest rates when it comes to education loans.
The annual family income and the course pursued by the education loan applicant are primary determinants of the loan amount.
Generally, loans below Rs 4 lakhs do not require a security or guarantor.
Usually, the maximum loan limit for students studying in India is capped to Rs 10 – 15 lakh and up to 20 lakh for those who wish to study abroad with an Educational loan.
The normal student loan repayment period is 5 to 7 years, but flexible options for settlement of education loans with longer time period, i.e. 10 to 15 years is also available.
The benefit of education loan also goes beyond financing money. This form of loan also enables a person to get tax deduction benefit U/s 80 (E) of the Income Tax IT Act and reduce tax liability in the proportion of the tax slab applicable on the individual.