How Will A Study Abroad Education Loan Benefit You?
Posted by RitaBiswas on December 16th, 2019
One of the first thing that comes to a study abroad aspirant’s mind is how to manage the education expenses. While arranging for funds the only two things that come to mind are Scholarships and Financial aids.
Although, the huge competition in international education makes scholarship extremely competitive and it is not always possible to secure such benefits. But that is not the case for Overseas Education Loan. In today’s date education loans have become an easier way to secure funds.
The below points will help you gain some understanding into why exactly you should consider applying for an education loan for studying abroad:
1. Education loan is one of the priority sectors under which banks are required to lend by the Reserve Bank of India.
2. Students applying for overseas education loan can easily avail tax benefits under section 80 (E) of Income Tax Act 1961. The important criteria of this Act are:
a) Institution Fee
b) Hostel Fee and Mess Expenses
c) Examination Fee
d) Library and Laboratory Fee
e) Purchase of Books
f) Equipment and Instruments / Laptop
g) Caution or Refundable Deposit
h) Passage money to the host country
i) Travelling Expenses / Air Tickets
j) Overseas Travel Insurance
4. Most of the banks provide an average of 10 to 15 years to repay the education loan.
5. The loan amount that is generally granted to a study abroad aspirant ranges from 20 to 40 lakh rupees. Although, this amount can vary on the higher side, basically if the student is applying for bachelors as the study duration is longer than masters. The student can also avail nearly 80 lakh to 1.50 Cr rupees (Nationalised Banks).
Benefits of Education Loans
Valid for one and all: Any student who wants to study abroad can apply for a study loan. Even the students from economically backward sections of the society can take overseas education loans under the sponsored subsidy scheme by Government such as ‘Central Scheme to provide Interest subsidy’ (CSIS).
Effective for all courses: Study loan can be availed to pursue courses like, graduation, post-graduation, diploma courses, vocational courses in foreign universities.
Can be availed without much an ado: Education Loan for Abroad Studies are broadly and effortlessly available. In fact, study loans are a priority product in all banks as per the RBI’s guidelines.
Wide range of loan amounts: Financial Institutes can offer loans anywhere between Rs.20 lakhs to Rs. 1.50 Cr. The size of the loan depends on the course applied for, University ranking and the duration of the course along with the parents’ financial credentials.
Low interest rate for female students: Usually female students are offered loans at lower interest rates.
Easy repayment: Also, another great advantage of study abroad loan is that the loan amount need not be repaid immediately. The student gets the advantage of Moratorium Period which is the sum of study period and job search period. The repayment tenure can extend up to 10 to 15 years after the completion of the course.
With the global economy facing instability in recent years, education loans provide security to international students whose personal funds might dry out due to unexpected crises. This article gives an insight on how the education loan is beneficial to study abroad aspirant. But to know about the entire process of education loan you can walk into any study abroad consultants and avail assistance for Overseas Education Loan process.
So, don’t waste time, just search the best education consultant in your city and immediately visit them.
Don’t stress! All the Best!
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