Get the right education loans to fund your dreams of learning.
It seems really unfair if a meritorious student doesn’t get to achieve his or her desired career goals only due to lack of finance. Almost every bank offers education loans these days. But not all come up with convenient rates of interest and repayment formalities.
Students are in need of more options of education loan, where they can find rapid loan processing system, faster disbursal, and lower ancillary expenses. Education loans need to come with competitive interest rates and also seamless repayment formalities. The repayment formalities need to start off (as some banks do) only after the completion of the moratorium period. The more the repayment formalities carry customizable and conducive terms, the more will the students be benefitted by the education loan. Education loan that comes with tax benefits, post-graduation EMI schedule, and a flexible tenure make higher studies more affordable and convenient.
Students are offered a moratorium period by some banks against their education loans, which allow them to repay the education loan only after six months post the completion of the course. In some educational courses like that of an engineering course, students get an additional one-year exemption, apart from the four years during which the course runs; to start with the repaying.
Whichever education loan you go for, ensure that it allows the repayment to be started only post one year after the completion of the course, even if the student doesn’t succeed in getting a job during the placement sessions.
As soon as the repayment starts, the borrower is free to utilize the advantages he is entitled to, under Section 80-E of the Income-Tax Act. With such conducive education loans, students are able to put full attention on their career goals and study with no stress.
An education loan covers only the academic cost of any particular course, so it might not be adequate enough to meet the entire cost of an educational course, but still it comes a long way in helping you with your desired career option. Most of the parents decide to go for education loans rather than utilizing their savings account. They tend to keep the savings for emergency purposes only.
Generally speaking, an education loan is the first loan a student avails. So while repaying it if he or she can build a good credit history, it will be beneficial for him in getting future loans like that of automobile loans, home loans, personal loans etc.