So you’ve finalized what and where you want to study, you’ve chosen the subjects you want to major in and have your backup options in place. The next most important thing you need to do is arrange the money to fulfill these objectives. You don’t want to burden your parents or have them ask relatives or break their retirement plans to fund your education. Instead you can choose to stand on your own feet by taking an Education Loans In India
1) This will help you cover the admission fees, the cost of exams, your stay in a foreign country and many other expenses that will arise when you travel overseas for the education you’ve always dreamt off! Besides these expenses, you can use an educational loan to cover things like library & laboratory fees, the purchase of books, equipment & instruments, to pay refundable deposits and even your flight tickets to the host country. Thus an education loan helps you cover the entire cost of your studies overseas without needing to burden your parents or relatives
Let’s get down to the specifics beginning with the amount you can borrow. A good lender will provide you as much as 20 to 40 lakh as the loan amount. This amount should be more than enough to cover the financial requirements of an education overseas.
2) As far as the tenure is concerned, you can expect a term of 7 to 15 years to pay back your Education Loans In India. The added advantage of an educational loanis that you have the option to start paying back the amount after you get a job, this known as moratorium period. Most lenders allow you a moratorium period that is the course tenure + 1 year or 6 months after getting job, whichever is earlier. Chances are, after your course, you will go on to get a job there and earn in a foreign currency for a few months. You can use this salary to back the loan amount without needing to rely on anyone financially!
3) Last but not the least is the interest rate which could be anywhere between 12 & 14 percent. If you’ve taken the loan in your parent’s name then the cost of interest can even help them save taxes. This is because the interest paid on education loan is allowed as a deduction from the total income under section 80E of the Income Tax Act.
4) Before you jump for joy, it’s important to note that you also need to be eligible for an Education Loan In India. Most lenders will look at your past academic track records. Some will even evaluate the quality of institute & course you wish to pursue. They will look into your ability to get a job & the estimate salary you could end up drawing after the course. Another important factor in deciding whether or not you get the loan is your credit score and the score of your parents if they’re co-applicants in your loan. It’s good to maintain a credit score close to 900 in order to get your education loan approved.
All said and done, an educational loan for abroad studies is that best to secure a bright future without burdening your parents financially.
If you are a bright student then ensure you have a bright future too, with an educational loan .
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