How a Study Abroad Education Loan can finance your child’s education and help you save on your tax?
May 17, 2019
Do you have an opportunity to study abroad, but are concerned because you may not be able to arrange for the money? There are options such as financial aids and scholarships that will reduce your financial burden. However, if those options are not available for you, consider applying for education loan. The top finance companies in India offer study abroad loans for students who wish to pursue their higher education in other countries.
What are the key requirements for applying for a student loan?
- Should be an Indian citizen and aged above 18 years
- Should have admission confirmed
- Should have a co-borrower in India
- The co-borrower should have an account in any bank in India and have cheque writing facility
- KYC of primary and co-borrower
- Details of course and fee details
What are the benefits of applying for education loans?
- Monetary support: You get the monetary support to take up your higher education
- Tax Deduction: Parents can avail tax deduction on the loan interest amount under Section 80E. There is no upper limit for this deduction. Under Section 80C, one can claim up to INR 1, 00,000 deduction for payment of tuition fees (Other fees will not be considered).
- Repayment Period: Lenders generally have 7 to 12 years repayment period
- Low Loan Interest: Compared to other types of loans, the interest on educational loan is generally lesser
- 100% Coverage: The education loan usually covers 100% of all your academic expenses and includes all fees
What are the expenses that the education loan amount covers?
The loan amount covers education expenses such as
- College and hostel fees
- Laboratory and library fees
- Exam fees
- Caution or refundable deposit amount
- Purchase of books, instruments, equipment
- Ticket cost to travel to the host country
If you notice, you will see that the loan amount can be used for all expenses related to the education and not for your personal use. So, you should make other arrangements for your personal expenses or check if you can take up jobs to support yourself as you study in the host country.
Nitstone Finserv is one of the top finance companies in India that offers study abroad loans for students. Whether you want to apply for education loan for MS abroad or to pursue education inside the country, we can give you the necessary funds. To know more about the education loan and the loan application process, you can contact us right away.