Factors to be considered while availing for a study loan
Higher education has become a necessity more than a choice. But with the costs of education getting high, only a few of them can afford higher education from their own pocket. Amongst many of the options available the study loans in India are the top choices over traditional finances and the personal loans. They are given by the various banking and the non-banking institutions in India. The study loans are given at a lower interest of 12.75 % with nominal processing fees of mere 1 to 2%.
Here are the key reasons why study loans are a better option:
Moratorium period:
Education loans offer a provision of moratorium period. You can start the repayment of the loan after you get a job. In this provision you also get time to settle financially with the new work. Hence, you can start the repayment of the loan after 6 months of getting a secure job. This will help you in planning the repayment of the loan you have taken.
Tenure of repayment:
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The tenure of the study loans in India is the important thing that is considered while you apply for a study loan in India. It is a long term commitment hence; opt for a lending institution that provides flexibility in the tenure of repayment of the education loan. This way you will not feel burdened by the loan you have taken.
Tax exemption:
In case of the study loans in India, the borrowers gain from the tax benefits under the section 80 E of the Income Tax Act, 1961. The benefits are available on the interest rate amount alone. Unlike the study loans in India the personal loans do not offer any concessions in the tax deduction. To avail this benefit one has to submit the bill proof.
Interest rates and processing fees:
When one decides to opt for any loan the most important factor he or she must consider is the interest rate applicable. The Interest rates offered by various banks and non-banking financial institutions is different. Generally the study loans in India are offered at a lower interest rate than the other traditional options like the personal loans. Also the education loans provide flexibility in the interest rate and the repayment tenure. Hence, it is a rational decision to take up an education loan instead of going for personal loans. Additionally, the processing fee which is applicable on all the loans is also very nominal as compared to other financing options.
If the student is availing for a Study Loans In India he or she should keep all his documents hand, so that he doesn’t have any last minute confusions. Resort to a sedentary lifestyle and avoid unwanted expenses. This will reduce the burden of the loan from the shoulder of the students. He can also take a part time job in order to equate with the expenses, this will lead him to save money. Taking up a part time job will help you reduce the burden of the loan.
