KC Overseas Education

With the cutthroat competition and rising inflation, availing an overseas education loan has become a must to pursue higher education from a foreign university. Earlier, parents used to save in order to finance their child’s education but in today’s date the cost of quality education is constantly on the rise, and it seems little difficult to be able to save that much amount. Hence, education loan comes to the rescue in such circumstances.

If you are planning to avail an overseas education loan for yourself or for your child, then this blog is for you. We are going to discuss about the perks of taking an education loan. So, without any further ado, let’s get straight into it.

Perks of taking an Overseas Education Loan

1. A Wide Range of Expenses are Covered Education loan for higher studies abroad covers almost all the necessary expenses including the tuition fees, accommodation charges, travel tickets, living expenses, charges for laptop and any other expenses like field visit required to successfully complete the degree.

2. Lower Rate of Interests The interest rates on the overseas education loan are quite less comparative to any other loan like home loan, personal loan, car loan. Female students also get a special discount of 0.5% in majority of the financial institutions.

3. An Opportunity to Build Your CIBIL Score CIBIL Score is the credit information report that plays an important role in any loan. A CIBIL score generally ranges between 300 to 900 and the CIBIL score above 750 is considered as a good score. Building a good score makes it easy to secure loans in the future with much ease.

4. Tax Benefit Under the section 80E of the Income Tax of 1961, the applicant and the co-applicant becomes eligible to avail a tax exemption for the education loan. As a part of it, they can pro-claim a definite percentage of the interest paid towards the loan as deductible from the total income.

5. Availability of the Moratorium Period In an overseas education loan, the financial institutions offer the moratorium period of up to 1 year before the repayment of the education loan begins. This period allows students to pay the loan after the completion of their degree without having to worry about the repayment.

6. Liberating parents from the loan burden An overseas education loan allows students to take the responsibility of their future by liberating their parents from education loan burden. Taking an education loan means if quite easy today if the student meets overseas education loan requirements. So, students can avail the loan on their name and have the sense of responsibility to repay.

7. Long Repayment Period An average repayment period on an overseas education loan is between 10 to 15 years. It is a sufficient time limit to be able to repay the education loan.

Worried about arranging funds for Masters in US? Get a detailed overview of an education loan to study in USA and its process to pursue your master’s degree in US.

While one plans to take an education loan, various financial institutions in India and overseas offer an education loan to study in USA. Check those out and consider factors like interest rates, the quantum of finance, processing fees, repayment period, etc while finalizing a bank.