Have you been thinking about completing your higher studies at an elite foreign college but are worried about the soaring tuition fees? These days, education has been quite expensive everywhere. And not everyone is furnished with a comfortable financial cushion. If you too are facing this financial hurdle, student loans can be a great option for you to go and study in your preferred institution without depleting your personal funds. To know more about taking an education loan for abroad studies, click here: https://www.gyandhan.com/study-abroad-education-loans and make your studies in foreign, hassle-free.
Benefits Of Educational Loan For Studying Abroad
An educational loan offers many benefits. It is always a better option when it comes to studying abroad. Here are some of the reasons why student loans make more sense than self funding.
1. Your Savings Will Remain Intact
Getting an education loan for abroad studies will keep your savings like MFs, ULIPs, FDs and so on, safe. You can use your savings to settle your other expenses. But you will never have to spend your reserves on educational costs. Your savings can also be used for your education in the future, in case the program gets prolonged for some reason.
2. Get An Upper Hand At Income Tax Matters
When opting for an education loan for abroad studies, this is a crucial thing that you should surely not miss. According to a certain section of the Income Tax Act of India, students who opt for an education loan for abroad studies from a published financial institution can enjoy reductions on the interest paid on the loan. This lowers the interest rate to be paid. This reduction can be availed for eight successive years, with no particular limit to the amount to be claimed.
3. Invigorate Your Credit Score
A student loan is probably one of the first ways by which any student can build a credit history. A strong credit history will be created with timely repayment and compliance with the terms of the repayment. This will be of great advantage for the student’s funding requirements in the future with a strong credit score.
4. Simple Visa Approval
When you go for an education loan for abroad studies, the process of Visa approval gets easier. The Visa authorities are always on the lookout for a steady and reliable source of funding. At this time, student loans from government banks get easy approval as the source of cash flow is verified and reliable.
5. You Get To Guard Against Unexpected Expenses
Going abroad for studies can welcome you with many unexpected expenses. When you self-fund your education, it might become a burden for unexpected payments. When you take a student loan, you don’t have to worry about extra funds. All you have to do is just request your bank to pay out the additional cost.
6. You Get To Use The Moratorium Period
After a certain time, called the moratorium period, the repayment for secured loans starts. This moratorium period varies from six months to one year after your course ends. On one hand, this will give you the opportunity to entirely focus on your studies instead of worrying about settling your debts. And on the other hand, you will get a good amount of time after the completion of your course to pay off your loan. So, getting a student loan is always a better decision while thinking of studying overseas.
Studying abroad does not come cheap. But that does not mean that you have to compromise with your dreams. It is always best to find ways that can help you alleviate the interest rates on the education loan or give you the best offers. One of the best ways to do this is to take help from a third party financial institution that can guide you regarding the best course of action to take.