Quality education is a stepping stone to a brighter future. When you are planning to study in another country, you must become familiar with the expenses. Thinking about self-financing or any other option would be a mistake in the future. You will need to plan the tuition fee, accommodation, and living in a different nation in a way that will not create a burden on your pocket. Scholarships are also available for students to fund their education, but they are merit-based, so they are not accessible to every student.
Choosing an education loan for abroad studies will be an appropriate yet safe option to finance your studies without overburdening your family. Study abroad loans have thus become the saviour for all students who want to go abroad but don’t want to burden their families with their financial needs.
We all save money for emergencies; spending this money on international education will undoubtedly deplete a large portion of it. Because no one can predict when an emergency will occur, planning to take out an overseas education loan is a wise decision that will keep your savings safe for when they are needed. You will be able to better manage your mutual funds and fixed deposits if you take out education loans. Saving your money is a requirement to deal with any kind of situation in life. As a student, when you take out an education loan abroad, you will definitely become more financially disciplined and intelligent about spending money only on necessary things.
The education loan and interest payments based on your loan will make you eligible for tax deductions under Section 80E of the Income Tax Act. You can avail of the deductions in your tax payments by claiming the amount you are paying as interest on your education loan. Any student who takes an education loan from a nationalised bank is eligible to avail of the tax benefits of their education loan. Before taking the loan, you must inquire with your lender about these tax benefits. Let us take an example: if you pay 5 lakhs in interest on an education loan each year, you are eligible for a deduction under the overseas education loan. Do not forget to discuss this with your lender. Tax deduction is one of the lucrative benefits of education loans for overseas studies, which is why the majority of students are now openly choosing education loans to finance their overseas studies.
Options like self-funding and scholarships do not provide you with the variety to explore as much as possible. But education loans give you the freedom to explore the best kind of loan based on your requirements. Secured and unsecured loans are available in the market for students, so those who have collateral to provide can apply for the secured loans. On the other hand, those who don’t have collateral have no need to worry; you have the unsecured loan option to make your dream a reality. All you have to do is look for the options provided by various lenders.
Taking out a student loan for study abroad will help you improve or build your CIBIL score. Timely repayment of dues, interest, and compliances will make your CIBIL score better. Not only this, but whenever you will require funding in the future, having a good CIBIL score will be an advantage. A good credit score is an essential requirement for anyone who requires a loan, so having a good credit score would be an advantage for such a person.
An education loan covers almost all the expenses, like tuition fees, study material, living abroad, and travel fares. Make it easy for students to manage their expenses without any stress. Student-centric loans are structured by focusing on all the relevant expenses, from university fees to living in a new country without any stress. 100% financing is one of the great benefits of education loans, making it possible for students to live a stress-free life in a new country without worrying about expenses all the time.
There is a myth that you must begin repaying the loan as soon as the lender disburses the funds to the borrower. However, this is only a myth; reality is quite different. EMIs or any interest payments will usually start after the moratorium period. Once you complete your education, you will still have an additional 6 months or 1 year to find a suitable job. There's no need to hustle about repaying the loan.
When an individual decides to study at a foreign university, it is preferable to take out an education loan. Now that study abroad loans have an easy and flexible repayment option, you don't have to mentally stress yourself out about how to repay your loan. For a student loan to study abroad, now students have a longer period to repay them. A moratorium period is provided as a relaxation to complete your studies without any worries about loan repayment. Additional time is given to find a job for an individual. Thus, in every way, an education loan is a one-stop solution for all your financial needs related to overseas education.
Conclusion:
Student loans are a way to expand your opportunities for educational and professional success without depleting your savings or exhausting yourself by relying on family and relatives. Do not let anything, including financial constraints, prevent you from achieving your dream of a quality education; all you need to do is plan and take action to achieve your goal of studying abroad. For instant student loans online, you can contact Education Loan Guru, and they will take care of the rest of your financial concerns
By Education Loan Guru
