Advantages Of An Education Loan
When you begin your study-abroad epic journey, you will find that there is a lot in store for you. You will be spoiled for choice with a variety of courses to choose from, universities to investigate, and housing options to consider.
What’s more important, and something that many students overlook in the beginning is the funding and financing options available to them. While scholarships and fellowships may or may not be available to you, a study-abroad loan is a simple and convenient way to demonstrate financial support. There are numerous benefits to taking out an education loan, which we have discussed in depth in this blog.
Why Education Loan is Important to Study Abroad?
On the one hand, you can apply the option of applying for the best study-abroad scholarships. The big question, however, is whether scholarships will cover all of your study-abroad expenses. If not, do you have enough money to cover the remainder of your expenses? Most of the time, the amount of money that students can borrow far exceeds the amount of money that they or their families have saved. Financial constraints cause reduced spending, which may limit your ability to attend your preferred institution. This is where the emphasis on getting a student loan comes into play.
6 Most Important Advantages Of An Education Loan
Accessibility & Availability
Student loans, unlike scholarships or grants, are easily accessible to the majority of the student population because they are available from a variety of sources. Along with banks (both public and private), a large number of NBFCs (Non-Banking Financial Corporations) offer student loans with relatively simple procedures. Many other organizations also assist students by providing endowment loans and other incentives, making this one of the most significant benefits of an education loan.
When deciding whether or not to take out a student loan, interest rates are a major consideration. Education loan interest rates are typically lower throughout the world, including in India, particularly from public sector banks. They are, in fact, more affordable for people from low-income families, thanks to a government subsidy that covers the interest on the loan for the duration of the course.
Kuhoo is a reputable education loan marketplace where you can apply for education loans to study abroad at the lowest interest rates possible.
Good Repayment Terms
Another important factor to consider before taking out an education loan is the repayment plan. Most loans require immediate repayment, but because student loans are based on potential income, many banks offer flexible repayment options, making it easier for students to repay the loan themselves once they get a job.
One of the most significant benefits of an education loan is the associated tax breaks. Under Section 80E of the Income Tax Act of 1961, the interest on your loan is completely tax deductible. This helps a student in saving money during the repayment period.
One of the most significant benefits of an education loan is that it teaches students to be responsible for their education. Aside from relieving your parents of a significant financial burden, student loans provide an additional benefit. Obtaining an education loan also ensures that you are completely immersed in and dedicated to your studies in the hopes of landing a rewarding career that will allow you to easily repay your loan.
Choose From Customized Loan Plans
Lenders and creditors have identified the need for student loans tailored to a specific subject, college, or country. Education loans are now available from public sector banks, commercial banks, and Non-Banking Finance Companies (NBFCs) in India and abroad. Whether you need a loan for an executive MBA program or a vocational training program, you’ll be able to find one that meets all of your requirements.