What is Education Loan

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What is Education Loan?
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• Acquiring quality education has become a
  necessity to lead a quality life. However,
  quality educational institutions good courses
  have become expensive and not everyone can afford
  to bear the increasing educational expenses.
  Students, in such cases, choose to take the help
  of education loans to fund their studies and
  reduce their parents financial burden. Education
  loans prove to be quite useful to students who
  want to pursue further studies with part-time
  work or for the ones who do not have great family
  assets. You can acquire education loans through
  the banking sector or through NBFCs. Here are the
  benefits why you should opt for Education loans

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• Wide coverage Not only does the education loan
  include tuition fees of the institution, but also
  covers other expenses such as - educational
  books, travelling, hostel fees, cost of uniform,
  etc. Moreover, 100 of education expenses are
  covered through educational loans. Parents do not
  have to pay for any extras.
• Simple Eligibility Eligibility criteria to take
  educational loans are very flexible and it easily
  applies to everyone - one has to be citizen of
  India and should be able to produce admission
  letter from the institution. So, eligibility
  criteria are never a hurdle for people seeking
  loan. This is the reason why students are
  choosing take education loans on a large scale.

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• Minimum Documentation Students are comfortable
  in taking education loans, because the process is
  quite simple and demands very basic documentation
  - your passport size photograph, residence and
  age proof, admission confirmation letter with
  fees details, mark sheet and also details of any
  scholarship you are applicable for. Students
  dont have to take extra efforts to arrange the
  documents as they are very elementary.

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• Tax Exemption The section 80E of Income tax
  states that the interest borrower pays on study
  loan is used to reduce your tax for up to 8 years
  during the repayment of the loan.
• Moratorium Period Education loans provide enough
  moratorium period. It usually gives 6 months
  after course completion to look for good job
  opportunities so that you can make arrangement to
  pay EMIs and also save enough money. This helps
  in easing the burden of repaying the loan.
  Students become independent and can explore many
  opportunities during this time.
• Maintain a credit score Once you start repaying
  your education loan on time, it will help you
  enhance your credit score and keeping good credit
  score increases your possibility of taking loans
  in future.

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• Ease of Availability Education loans are not
  only available for institutions in India but also
  for abroad university, this facility is
  advantageous because large percentage of student
  nowadays are willing to explore education
  overseas which is very expensive and education
  loans are boom to them.
• Saving Education loans help in protecting your
  parents savings which can be used for various
  other expenses. Since in education loan no
  collateral is required it avoids debt and
  borrower is not trapped in financial crisis.

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• I hope this article has helped you to understand
  the importance of education loans. Now, you can
  easily plan for your higher studies and dream
  high!
• RELATED ARTICLE - Important points you need to
  know about education loan eligibility

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• For more details visit here -
• https//www.auxilo.com/education-loan/