Benefits of taking an education loan for abroad studies

Getting quality education is essential in today’s competitive market. Many qualified students step back from pursuing higher studies overseas owing to increased educational costs. Thankfully, many banks and financial companies offer education loan for abroad studies. It funds your overseas education.

The education cost in foreign countries is expensive. Moreover, it involves expenses like accommodation, travelling, etc. All these add up to the already sky-rocketing fees. Hence, self-funding becomes insufficient. There are many benefits of opting for an education loan for abroad. Let us understand them:

Tax benefits: Students applying for overseas student loan get tax concession. The interest on the loan amount is fully tax-deductible without an upper limit. It is to ease the financial burden of the students. As a result, you get a reduced education loan interest rate.  You can avail of this benefit for eight consecutive years. The loan tenure for such a loan ranges from 10 to 15 years. Hence, try to shorten the loan term to avail the benefit for the entire duration.

Covers various expenses: The loan funds more than the university fees. Studying abroad comes with lots of additional costs. It requires you to shift there. Hence, expenses like your ticket costs, VISA processing fee, accommodation, books, tuition, library fees, etc. gets covered by the loan. It eases your financial burden relating to all aspects of studying abroad.

Flexible repayment: Lenders provide flexibility for repaying study loan for abroad. You get a grace period called the moratorium. It means you can repay after completing your study programme. The period ranges from six months to one year. It enables you to get employed before starting your Equated Monthly Instalments. Some lenders also do not charge for late-repayments.

Easy funds arrangement: Getting the loan enables you to finance your education immediately. Arranging funds by yourself can take a crucial time, causing a delay in admission. Universities have admission deadlines and involve a lengthy procedure. Hence, you cannot afford to lose time. Thus, education loans are the best way to get instant financing.

Protect your savings: Savings are hardly sufficient to cover the sky-high educational fees overseas. Using them goes in vain. Instead, the foreign education loan covers all the study expenses. This enables you to use your savings for investments and other needs. It also acts as a backup for loan repayment later.

Special offers: Lenders offer many special schemes to ease the financial burden of students. It depends on different factors and their policies. There are concessional interest rates provided to female, underprivileged, and differently abled students. It assists them in pursuing education despite financial constraints.

Keywords used: education loan for abroad studies, education loan for abroad, study loan for abroad, foreign education loan.

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