Cost of education is increasing day by day, an engineering degree from IIT will cost around 6 lakhs whereas the same degree from a private institute will cost around 10 lakhs. And if the student is willing to pursue an international degree from overseas, it will go up to 40-50 lakhs. In order to finance the degree, students opt for education loan for higher studies abroad. One of the biggest advantages of an education loan is that the EMI begins only after the student starts working. But there are some lesser-known benefits of availing an education loan. In this article, let us know what those are.
Here are the 4 Lesser-Known facts of availing an Education Loan
Education loan covers everything: There is a misconception that education loan only covers tuition fees. However, that’s not the case. Education loan covers all the charges right from university tuition fees, air ticket fair, purchase cost of study materials to refundable college deposits. Education loan covers everything required to complete your international degree.
Parents can get tax benefits on education loan: As per the section 80E of Indian Constitution, parents of the applicant become eligible for availing tax benefits. This rebate in income tax can be used to pay off the interest while paying the EMIs.
No Pre-payment penalty: If the student is repaying the education loan amount before the stipulated time period, banks do not levy a penalty on the early closure of the loan amount provided a student must have continued the loan for a stipulated interval.
Loan gets cheaper when starts working overseas: If a student is pursuing an international degree overseas, there is a possibility of getting a job abroad that will pay them in foreign currency. In that case, the depreciating value of rupee works in the student’s favor making the loan amount easily repayable.
There are many misconceptions regarding the overseas education and the factors relating to it. We hope that we have cleared out some of those. Before applying for an overseas education loan, a student should do a comparative analysis of various lender companies depending on the factors like margin amount, ROI, processing fees etc. For any queries related to overseas education loan, do reach out to us
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