Overseas Education Loan is getting costlier every year. Higher education, especially abroad, can cost up to Rs 1 crore and more, especially if the students want to enroll in a good university. Earlier, to cater to the education needs of their children, parents used to dip into their savings or liquidate assets like gold and property. But these days, most people have started taking overseas education loans for funding a child's higher education. They look to make the student more independent and responsible. If you too are willing to take an education loan for study abroad, look at these benefits before choosing the best option for yourself.
Savings Protection
Taking an education loan for study abroad can
help you leave your savings untouched or undisturbed, helping you to achieve
your long-term financial goals like children’s marriage, retirement plans,
buying a property. It also prevents you from being financially dependent on
anyone post-retirement. The passive Investments
in most cases or the Return on Investments is higher than the actual cost of
the loan.
Coverage
Overseas education loan covers the course fee
along with other course expenses like hostel expenses, library charges, exam fees, and lab fees. The loan also covers
the cost of travel, books, so you don’t have to worry about anything during the
course of the program. All expenses related to overseas education are covered.
Tax benefit:
Under Section
80E of the Income Tax Act., the interest you pay on overseas education loans
qualify for an income tax deduction which can be claimed for up to eight years.
Under 80E the parent or guardian can claim to have an unlimited benefit which
reduces the effective interest rate.
Moratorium Period:
For an education loan for study abroad, the
moratorium period is the period of study for the borrower during the loan term.
During this period they don't have to repay the loan. The interest is charged
on simple interest added into the principal at the end of the tenure. In the case of overseas education loans, the
moratorium period ranges from 6 months to 1 year from the date of completion of
the course. This gives the borrower enough time to look for a good job and save
to start repayment of the education loan.
Credit history:
In case you are looking at taking a loan from
a lender in a foreign country overseas education loan has the unique benefit
of providing a start to your credit history.
If you repay your education loan on timely basis, you will keep the
credit score positive which will help them to get any other loan at reduced
interest rate easily in the future.
Wrap up!
If you are looking to take an education loan
to study abroad, see no more than Eduloan. We provide a single digital platform
for all the borrowers and banks and help them to connect so that students can
get the best overseas education loan at competitive interest rates. We have
over 15 lenders which include nationalised banks, private banks, NBFCs and
international banks such as Sallie Mae, Ascent or Earnest. We at Edu Loans are
the most comprehensive financial platform for Overseas education loans having
the maximum number of lenders to provide you the most suited loan based on
eligibility cost and convenience. Reach out to us for a dedicated relationship
manager who will guide you through the entire process until your loan
disbursal.
