5 reasons why higher education loans are amazing!
Higher education loan is a big hit these days. It’s no surprise actually, what with the cost of education steadily rising every day. However, there are still a number of students who have big plans & equally promising futures that are hesitant when it comes to education loans. They are afraid of such loan products, and fearful of debt altogether. If you are one such individual, afraid to take the plunge into debt and achieve your dreams, the following article will give 5 reasons why education loans are amazing and the best option to cover your financial gaps & realize your dreams.
1. With one, you won’t have any financial worries.
Most higher education loans cover every aspect of your study plans. This ensures you have zero financial woes while fulfilling your educational aspirations. Everything from your course fee to your travel expenses will be taken care of. Even other expenses such as the cost of entrance exams, the proof of funds for a visa, any study material that needs to be purchased, the cost of laptops or equipment and any deposits that need to be paid will be covered by the better education loans.
2. Low-interest rates can be lowered further.
One of the biggest pain points of any loan offer is the interest rate. However, education loans can be less of a burden to handle in this regard. This is because most lenders will levy Education loan interest rates ranging from 10 to 14 percent on your loan. This is way lower than what you would have to shell out in the case of a personal loan. Moreover, if you’ve aced your way through college and entrance exams, most lenders will be willing to slash your rates a little on account of your academic record.
3. No security needed.
Non-banking financial institutes have made higher education loans extremely user-friendly. Gone are the days where students had to back their loan application with their valuable assets and hold them as collateral to procure the loan. These days, most lenders will be more than willing to approve loan application upwards of 20 or 30 lakhs, without any security, as long as you show merit & promise.
4. Focus on studies not repayments.
There’s probably no other loan offering out there that allows you to skip on your repayments for a few years. But with education loans, you can finish the course/find a job and then start repaying the loan amount 6 months after that – this is called the moratorium period and is a huge boon for students. It allows them to focus fully on their education and start repaying their debts when they are in a financial position to do so.
5. Tax benefits.
Another amazing thing about higher education loans is the fact they help you save a lot of money through tax benefits under Section 80E of the Income Tax Act – which states that all the interest you pay in a year, without any limit, can be used to claim an equal amount of deductions from your taxable income.
So why hold back, opt for a higher Education loan, fulfill your dreams and enjoy these amazing benefits in the process. Good luck and all the best, study hard!
1. With one, you won’t have any financial worries.
Most higher education loans cover every aspect of your study plans. This ensures you have zero financial woes while fulfilling your educational aspirations. Everything from your course fee to your travel expenses will be taken care of. Even other expenses such as the cost of entrance exams, the proof of funds for a visa, any study material that needs to be purchased, the cost of laptops or equipment and any deposits that need to be paid will be covered by the better education loans.
2. Low-interest rates can be lowered further.
One of the biggest pain points of any loan offer is the interest rate. However, education loans can be less of a burden to handle in this regard. This is because most lenders will levy Education loan interest rates ranging from 10 to 14 percent on your loan. This is way lower than what you would have to shell out in the case of a personal loan. Moreover, if you’ve aced your way through college and entrance exams, most lenders will be willing to slash your rates a little on account of your academic record.
3. No security needed.
Non-banking financial institutes have made higher education loans extremely user-friendly. Gone are the days where students had to back their loan application with their valuable assets and hold them as collateral to procure the loan. These days, most lenders will be more than willing to approve loan application upwards of 20 or 30 lakhs, without any security, as long as you show merit & promise.
4. Focus on studies not repayments.
There’s probably no other loan offering out there that allows you to skip on your repayments for a few years. But with education loans, you can finish the course/find a job and then start repaying the loan amount 6 months after that – this is called the moratorium period and is a huge boon for students. It allows them to focus fully on their education and start repaying their debts when they are in a financial position to do so.
5. Tax benefits.
Another amazing thing about higher education loans is the fact they help you save a lot of money through tax benefits under Section 80E of the Income Tax Act – which states that all the interest you pay in a year, without any limit, can be used to claim an equal amount of deductions from your taxable income.
So why hold back, opt for a higher Education loan, fulfill your dreams and enjoy these amazing benefits in the process. Good luck and all the best, study hard!
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