Concerned about the sky-high tuition fees while planning for higher studies abroad? Well, in this case student loans for studying abroad would be the best option for you.
Read on to know the reason why study abroad loan is better in all the aspects while foreign education is on your mind.
The main benefits are as follows:
Savings stay Safe –
All your savings such as MFs, FDs, ULIPs, retirement savings, etc. are protected and can be used to meet other expenses by taking a student education loan. Moreover, if you are a good investor, you can pay interest to the lender by investing your money which will get you high return. In case the program gets prolonged due to unforeseen events you can use the savings to safeguard your education in future.
Benefits of Income Tax –
By opting education loan this is one of the most important benefits. Students who take an overseas education loan from a gazetted financial institution, under Section 80E of the Income Tax Act of India, they are eligible for deductions on the interest paid on the student education loan thus reducing the rate of interest to be paid. There is no upper limit on the amount to be claimed and they can avail this deduction for up to 8 consecutive years.
Credit Score Building –
A student can build his/her credit history through the overseas education loan. A strong credit history which acts as an advantage for the future fund needs can be gained by timely repayment and compliance with the terms of education loan repayment.
Moratorium Period Benefit –
In one of the kinds of overseas education loans – Secured Loans, repayment begins after the moratorium period (Degree Completion Period + Job Search Period). During the students’ study years instead of paying off their debts, this gives the students a chance to fully focus on their education.
Approval of Visa is Easy –
For almost all the visa authorities of nearly all the countries are concerned about the reliability of the funding source to ensure that the flow of funds remains steady. As the regular flow of funds is assured and government banks are reliable, at such a stage, student loans, especially from public sector banks help a student get easy approval for their visa.
Large Funds can be arranged Upfront –
Students require to show proof of funds for the entire intended duration or 1 year of their stay in many countries such as Germany, Canada, Australia, etc, for which they have to pay the complete amount upfront, which burdens the pocket. In such cases, to bear the entire amount and to disburse it directly to the university is when the education loans helps.
Unexpected Expenses’ Safeguard –
In cases where students are hit by unexpected expenses, they who self-fund their education have to bear the additional expenses and arrange for extra funds. Students who take a student loan for abroad can request the bank to disburse the additional amount and thus do not have to worry about unexpected expenses.
Isn’t this great?
Check out for the online loan application for abroad studies immediately and avail loan as per your requirement to have a hassle-free study abroad experience.
Good Luck!
foreign-education-loan 