Why People Are Depending on Study Loans in India
In the last few years, so much has changed like the economy,
fashion, climate, and even education. Higher education is a dream for many
people. However, due to financial setbacks, it can’t always be achieved by even
the brightest students. Higher education has become increasingly expensive even
in India. Study loans in India help bridge the gap between the amount the
family lacks for the education and the amount required. Study
Loan in India help pay for the basic expenses such as the tuition,
accommodation costs, and other costs that the family might not otherwise be
able to afford. For those who might want to go abroad or even pursue higher
education in India, such as MBA, MBBS, etc., study loans are a godsend. Here
are a few reasons why people are depending on study loans in India:
1) Study loans in India help you pay for higher
education- The most obvious reason is, of course, that study loans in
India help you pay for higher education. It is a known fact that, Indians value
education to a great extent and having a professional degree means you have the
upper hand when it comes to being considered for a job.
2) Educating your children becomes affordable- When you
have children, educating them is one of your main responsibilities; but it is
also one of the main reasons for stress and grey hair because you have to
manage monthly expenses and fulfil your children’s dreams. Even after working
endlessly, some parents cannot afford the burden of higher education. This is
where study loans come to save the day. Education Loan in India
have a quick and convenient application process, fast disbursal of funds, and a
deferral period wherein the repayment does not start immediately, giving the
family and/or child time to save up some money.
3) Tax benefits- Under Section 80E in the Income
Tax Act, repayment of interest on study loans allows a tax paying citizen to
get a deduction. There is no maximum limit to claiming this deduction. You can
even take out an education loan for vocational courses, which was not possible
before 2009.
4) Students become more responsible- Though
this is not a monetary reason, per-say, it is definitely an advantage for the
parents. Having to repay the loan amount makes the students more responsible
and they work extra hard when it comes to their education. The pressure of
repayment makes them constantly aware.
5) Most banks fund up to 90 percent of the entire
education- Yes, you definitely read that
right. Most banks that offer a study loan in India, fund up to 90 percent of
the entire education of the student. Not only are tuition costs covered; but
also other costs such as hostel expenses if the university is out of the
student’s city, exam, library, and lab fees are covered, costs of books and
other essentials, travelling expenses, etc.
If you are considering taking a study loan in India, remember
to do proper research and compare interest rates of various banks and non-banking
financial companies (NBFCs). We hope this article helps you in your decision.
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