Education loans in India are rising in popularity. There are many reasons for this, the first of course, would be the cost of education in today’s day and age – it’s rising exponentially every year. Another reason would be the increasing number of students looking to pursue their further studies.
Seeing this rising demand, many lenders have entered into the fray, creating intense competition. This is good news for borrowers as these banks and finance companies are forced to innovate and provide benefits to attract customers. Therefore, if you are looking to take an education loan, you can expect the following benefits.
1. 100% financing.
This is one first benefits you can expect with education loans in India. Previously, when public sector banks ruled the roost, one would have to provide a down payment to secure an education loan. However, non-banking finance companies have shown up and made thing significantly easier for aspirants. You can now get 100% financing, end-to-end coverage of costs without any margin money.
2. No need for collateral.
Again, not too long ago, when public sector banks were your only options, you would have to provide collateral if your loan amount exceeds Rs. 7.5 lakhs, in fact, you still do! However, this posed a huge problem for students without anything to offer as collateral. Fortunately, non-banking finance companies have again come to the rescue to provide bright students loans sans any collateral.
3. Score-based benefits.
That’s right; this is another benefit you can enjoy with education loans today. Many lenders will offer lowered interest rates, inflated loan amounts or waive off the processing fees if you’ve been a standout student all your life. They offer the same benefits even if you’ve performed extraordinarily well in your entrance exams.
4. Moratorium period.
This is one of the biggest advantages you can enjoy with education loans in India. With this feature, you don’t need to start paying your loan until you’ve finished your course or found a job. Some lenders will provide you an additional 6 months after this as well. This is a really great feature as it allows you to devote 100% of your concentration towards your studies.
5. Quick turnaround times.
Many lenders offer now offer breathtakingly fast turnaround times. Previously, one would have to wait for days to get approvals and then wait for more days to get sanctions. However, today, one can get sanctions within the day they apply!
6. Tax benefits.
This is another huge benefit you can enjoy with education loans in India. You or your guarantor can use section 80E of the Indian Income Tax Act to get a huge deduction on your taxable income. In fact, you can claim the entire amount paid as interest in a year to claim equal amounts of deductions.
So if you’ve been thinking about taking an education loan, we suggest you turn your thought into action and apply. You will benefit from the following benefits and also achieve your dreams in the process.
Good luck and all the best with your studies.