Top Reasons Students Should Opt for Education Loans

 With increasing college fees and other relevant study costs, taking a study loan has become a necessity for most students. An education loan for study abroad helps students complete their education without worrying about the financial aspects. Whether someone is planning to pursue a higher course in India or abroad, a study loan will go a long way to fund their education without any obstacles. Many leading financial companies are providing education loans for study abroad with affordable interest rates to support students in their educational journey.

Here are the top reasons why students should opt for education loans.

Comprehensive Coverage

Education loans for students often come with lower interest rates and cover a wide range of related expenses, such as college fees, travel ticket costs, books, and laptop costs, and more. These loans are easily available for students, helping them reduce the strain on their family savings and avoid the requirement of liquidating assets.

Flexible Repayment

Education loans come with flexible repayment options and a moratorium period during which students are not required to make EMI payments. This enables students to focus on their studies without worrying about repayment. As it is a specific loan designed to help students be ready for future earnings, most banks and NBFCs make it easier for students to repay the amount themselves after getting a job.

Tax Benefits

Students who take an education loan can benefit from a tax deduction on the interest repaid, as provided under Section 80E of the Income Tax Act. The interest paid on such loans can be deducted from taxable income, which helps to lower the overall tax burden. This deduction is available for a period of up to 8 consecutive years from the start of the loan repayment, providing valuable financial relief, especially in the early stages of a career when income may still be growing

While an education loan is a great way for students to fund their higher studies in their dream college in India or abroad, they should plan and select an education loan that fits their goals. They can use an EMI education loan calculator to make the right decision.