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Friday 12 August 2022
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Planning to Take an Education Loan? Here Are a Few Tips

Planning to Take an Education Loan? Here Are a Few Tips

Education and learning new skills will never go in vain. In these turbulent times, it is education that creates the difference between people who are succeeding & who are not. In order to have the edge over the competitors, you need to be well educated, skilled and smart. While education is expensive but education loan is the solution to your financial woes. An education loan will help you narrow the gap of finances that was stopping you from joining the course of your dreams.

An education loan is what you need to revive your career scope. If you are someone who has the drive to upskill yourself, you can avail an education loan that will improve your career growth chances.

How can an education loan be the saviour for you to build a career?

 The education sector has revolutionised in terms of quality of education as well as the variety of courses being offered. However, it makes the education cost a tad bit high for most students, and these students can opt-out for the education loan to lend a supporting arm.

Key points to keep in mind to make the best use of your education loan:

  1. Education loans encompass the course as well as charges that go along with it. Education loans also cover your accommodation charges, study equipment like laptops, coursework material, travel and other such expenses that assist you in your pursuit of higher education. The education loan amount is based on these expenses, and the interest charges will be calculated based on your family income.
  2. Any student can avail of this education loan with the parents or guardian. In an education loan, a student is the primary loan applicant, and parents are the co-applicants. Such loans are offered to students who are willing to pursue advanced courses in India or abroad.
  3. One key point is that you must arrange all your important documents and prepare a folio for the same. The banks will require documents such as acceptance letters, course details, course fee structure, previous mark sheets, documents that indicate the family’s median income and tax returns, and KYC documents.
  4. The best advantage of an education loan is that the repayment does not begin until and after the student has a job. The repayment begins shortly after the conclusion of 6 months from the date of starting a new job.
  5. An added advantage of an education loan is that, under section 80E of the Income Tax Act, 1961, you can avail a deduction of the interest amount. This tax benefit will help you save on the income tax you pay.

An education loan is a brave step of showing your commitment towards your future and is an investment in yourself. Before you think of applying for an education loan, you should gain clarity on what kind of course you want to pursue and where you want to pursue it. You can consult professionals to assist you with this process.