3 Key Benefits of Education Loan for Studying Abroad

Studying abroad brings great opportunity to grow your personality and attain career benefits. But, with the cost of education getting high every year, it is becoming challenging for students to cover their study costs on their own. An education loan is a financial aid to students to help them complete their dream education abroad. It provides complete financial assistance to students, allowing them to pay academic fees and handle other expenses during their studies in a foreign country. Today, many banks and NBFCs, are providing education loans for studying abroad at competitive interest rates. Apart from financial benefits, there are many more advantages of an education loan for students, making it a perfect way to fund your studies abroad. Here are some key benefits of loans for studying abroad.

Achieve Your Financial Goals

Often, parents shell out their savings or liquidate valuable assets to pay for their child’s education. It can affect their long-term financial goals, such as purchasing a flat, preparing for children’s marriage, etc. With an education loan, you can avoid the need to spend from your savings or disrupt your investment portfolio. Eventually, it will allow you to achieve your financial goals.

Tax Benefits

Another benefit of taking a study loan is getting tax exemptions for the amount. The loan applicant or the co-applicant can avail of an income tax exemption on an education loan, according to Section 80E of the Income Tax Act, 1961. A tax benefit on a study loan is a great way to save some money by claiming a tax deduction.

Cover Maximum Expenses

With a loan to study abroad, you can ease the living cost of a student in a foreign country. An education loan generally covers almost every vital expense students may require to complete their education. These include tuition fees, travel costs, and living expenses, including the purchase of computers, books, and other equipments.

 

These are some major benefits of taking a loan for studying abroad. Make sure you compare different options based on their interest rates and loan amount before selecting the right loan provider.