Education Loans from India and its long-term advantages
Synopsis:Get a low-interest education loan in India. Learn about the benefits of a student loans with tax benefits, as well as repayment plans. Learn more.
Accessing a quality education should be the highest goal of each student. But, it might not always be feasible to attain that goal because of the cost of education. But, the financial hardship should not be a reason to deter students from attending school. It is possible to take advantage of the student loan!
There are numerous benefits to student loans. For instance, the interest rate on education loans is significantly lower than the interest rate charged on personal loans and many more. Parents can help that their children are able to get an early start into their careers through the help of student loans.
Let’s explore the advantages of educational loans in depth and the reasons why they are the perfect option for financing your education!
What’s an educational loan?
With a soaring rate of inflation and the rising costs of goods and services, it’s not easy to afford education at an excellent institution. Depending on the type of course you choose, you could pay between Rs 5 lakh to 12 lakh to get a master’s degree, and around 50 lakhs for an medical degree. Business schools can also charge as high as Rs 7 lakh. Of course, the costs vary between institutions. It can be much more expensive if you are receiving a degree abroad.
The benefit of a student loan is that it’s an asset that can help you pay for your education to help you acquire the required skills to be successful in your career choice. The loan for education may be taken out by the student, their parents, or even an individual spouse, on behalf of the students.
What’s included in a loan for education?
The amount of the loan you can avail depends on the fee structure of the course you want to pursue and your personal information and also the income of the applicant’s co-applicant. Additionally, the total amount you can used as an education loan comprises the following:
- Fees for courses
- Costs for accommodation and travel
- Materials for study and other equipment expenses
What exactly are advantages of student loans?
Rates of low interest
Personal loans are becoming more popular and could be the most effective option to pay for tuition, the reality is that you may be paying more money out of your budget. This is due to the fact that they are a bit more expensive. loans for education cost will be less than the interest rate for other types of loans. The benefit of IDFC FIRST Bank’s education Loan you can take advantage of a student loans at competitive interest rates starting at 8.5 percent per year and receive the full amount of education financing in the shortest time!
A variety of courses
It is possible to obtain an education loan for students for a variety of kinds of degrees or courses that are not only within India but also overseas. This is particularly beneficial for those who wish to pursue their studies outside of India but are afraid due to the cost of course costs and other fees. For instance, with IDFC FIRST Bank’s Educational Loan over 18,000 courses are offered in more than 25 countries as well as 3200+ colleges! Additionally, IDFC FIRST Bank ensures you a smooth and easy journey with a simple application process and receive a fast education loans.
Flexible repayment choices
The majority of loans require the repayment of EMIs together with the interest each month, in contrast to personal student loans. Usually, the moratorium time for student loans is for a long time and will be considered until the duration of the course is completed with the grace time. Typically, the student is required to begin repaying EMIs in the first six months of finding a job, and one year following finishing the course, or sooner. This provides a great chance for the student as well as their family to be able to more effectively manage their spending and not fret about having to pay back the loan immediately. Students can choose to pay EMI’s as soon as they start or choose to pay a portion or the entire interest due during their course, which gives the option of a flexible repayment plan.
Tax benefits
The importance of educational loans can be seen in their ability to could assist you in saving tax and also. The interest you pay on student loans is fully tax-deductible under the Section 80E in the Income Tax Act, 1961. You are able to take advantage of this tax deduction for interest payments over a period that is up to 8 years, which typically covers the entire term of the loan. Educational loans from India are with attractive income tax advantages.
Self-dependence
A loan for education can help you understand how important it is to practice budgeting for your finances since students are the ones responsible for the repayment of their loans. It is possible to free your parents from financial burdens. If you want to become financially independent, begin making a budget for your monthly EMIs and take care of managing your expenses from the moment you begin working.
It is easily accessible
Loans for education are readily available to students in all colleges. Students can contact any bank they like to get the loan for education. IDFC FIRST Bank Education Loan allows you to join your preferred institution by assisting you with prompt financial assistance. Additionally, it facilitates quick loan approval for education through an easy application process that allows you to concentrate on the other important aspects of your educational journey and without any stress.
Can you improve your credit rating by obtaining a loan for education?
Regular loans payments help students establish their credit score. A solid credit history by using education loans could be beneficial when trying to reach other goals such as buying a home or car using loans. A well-planned EMI repayment plan will assist students to achieve the highest CIBIL score.
What is the conditions to be able to get a loan for education from India?
Here are some crucial conditions to meet for obtaining the loan for education in India,
- You must clearly state the cost of the course as well as the other costs involved.
- It is necessary to apply with an additional applicant, which could be at least one of your parents, or their spouse, or sibling, or any legal guardian.
- The details of the income of the applicant are usually required for obtaining an education loan
- Insurance is essential for taking a course outside of India
Conclusion
Education loans are among the most important financial products that contribute to the development and growth of any nation because it allows students to give the wings to their ideas and are ultimately the future of any country.
IDFC the FIRST Bank’s loan for education will lead you to the education you want. It is possible to apply to get an IDFC FIRST Bank education loan online using the FIRST Uni application (android exclusively). The app lets you look into various schools as well as scholarships, courses, and other opportunities to help you achieve your goals. You can also receive personalized assistance via a friend and meet with professional counsellors for creating SOPs and resumes for test-preparations, and much more.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The content is generic in nature and are intended for solely informational purposes. It’s not a substitute for advice specific to your specific situation. This information may be subject to revision, updating or completion, as well as revision or amendment, and could change substantially. This information does not intend to be distributed or use by anyone in any state or country where use or distribution would be in violation of laws or regulations or expose IDFC FIRST Bank, or any of its subsidiaries to registration or licensing conditions. IDFC FIRST Bank will not be held accountable for any direct or indirect risk or obligation caused by the use of this information making financial decisions that are based on the content and the information contained. You should consult with your financial advisor prior to taking any decision regarding your finances.
The benefits, features and promotions discussed in the article are in effect as of the date of publication on this blog. It is subject to change without prior notice. The content herein is subject to additional product-specific terms and conditions, as well as any terms and conditions that are applicable. Please refer our website www.idfcfirstbank.com for latest updates.
