Reasons Education Loan in India is good for Students.
In an ideal world, every student would get to study in the college of their dreams to pursue the field of education they’ve always dreamt of.
However we live in a world that is anything but ideal and this brings us to discuss the benefits of taking an education loan in India.
This is a must read for students and parents to know why and how to get an education loan in India to fulfill your, or your child’s academic dream.
Educational loans come with convenient repayment options
If you thought that you will need to repay your education loan while you study or are looking for a job, you think wrong. Many banks offer education loans which allow students to repay their loan either after completing their course or after finding a job, subject to few conditions. This benefit of educational loan in India allows students to be worry free in terms of financial backing and gives them peace of mind.
You may be able to avail an educational loan without a collateral security
An education loan in India without the hassle of arranging a collateral security? Yes! Depending on which bank you go to, you may not be asked to give a collateral security for loans below a certain benchmark. This benchmark can vary from Rs. 4 lakh to Rs. 7.5 lakh in certain banks. You may however be asked to provide a third-party guarantee.
Interest on education loan in India is tax deductible under Sec 80 E
The interest that you will pay on your education loan in India is deductible under Sec 80 C of the Income Tax Act, 1961. Here are highlights of the conditions of the deduction allowed.
The education loan must have been taken for the purpose of ‘higher education’
The education institute must be recognized by the Central, State of Local governing body.
For more details on the deductions available to you on your education loan in India, please visit the website of the Income Tax Act, 1961 here.
Education loans may help you build a credit with the bank or the financial institution
Any relationship that you can have with your bank or financial institution in terms of credit or lending will be beneficial to you in the longer run. Your education loan may be the first step that you take towards building a rapport with a bank in India. This will definitely make accessing credit easier in the future.
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