The Convenience of Education Loans for Students

It is every parent’s and child’s dream to get a quality education from a reputed or top-tier university either in India or in some foreign country like the US, the UK, Canada, etc. The cost of education, however, is increasing year by year and not all parents can afford to send their child for higher education. This means that even if the student has the potential to do really well in the degree of their choice, they simply lose out on the opportunity due to lack of funds. A few decades ago, paying for the child’s education through solely savings was possible. However, nowadays, it is not possible to only use savings unless the family is upper middle class or upper class. Education loans for students make it possible for the students to achieve their dreams. Education loans for students are loans that are offered by banks and non-banking financial companies (NBFCs) to help the parents pay for the students’ education. Education loans for students provide funds for the course fee and other expenses that the students might have to endure during the duration of their degree. Now, you might be wondering how education loans for students are convenient because of the word ‘loans’. In most people’s head, a loan means a liability. Fortunately, that is not the case with education loans for students. Here is the convenience of education loans for students:

1)      Easy to get- Now by this, we do not mean that the process is easy. We mean that they are readily available because of the numerous banks and non-banking financial companies (NBFCs) that offer education loans for students. You can apply either at the physical branch of that bank or non-banking financial company or you can apply online through the lender’s website. Even government banks have online application forms, making the process a bit easier than it used to be.

2)      The existence of the moratorium period- The moratorium period is the period where the applicant (you) or the co-applicant does not need to pay off the loan. When it comes to other loan types, the repayment starts immediately. However, in the case of education loans for students, the repayment period starts a year after the completion of the degree or 6 months after the applicant has obtained a job.

3)      Tax benefits- Under Section 80E of the Income Tax Act, citizens who are paying an interest on education loans for students, are eligible for a tax deduction for up to 8 years.

4)      The student’s life changes- If not for education loans for students, most students would not be able to get the education they truly deserve. With education loans for students, they can get the quality education as well as the quality job they need and deserve. They also make the student more financially independent and responsible overall.

Remember that education loans for students are a huge responsibility that should not be taken lightly. Do your research and then only apply for the loan. We hope this article was informational and we wish you the best for your future education and career!

How To Choose The Best Student Loans For Studying Abroad.

Nowadays, students have started depending on student loans to complete their higher studies, especially abroad. Unfortunately, international education is incredibly expensive especially for a country like India where the price of the rupee has been dropping significantly. Due to this, students who have the potential sometimes hold themselves back from studying abroad due to the lack of fund. That is where student loans come into the picture. Student loans have been a great help to students when it comes to achieving their goals and academic dreams.

Parents with students who want to go abroad for higher studies often hesitate from taking a student loan due to the risk of debt. For students who have proper and adequate information about student loans can easily pay back the student loans without landing in a pile of debt. This article will highlight how to choose the best student loans for studying abroad.

1)      Research about the best student loans for studying abroad- Most banks and non-banking financial companies (NBFCs) offer student loans for studying abroad and the procedure has been made easy because of online applications. Due to this, the internet is your best friend when it comes to researching for the best student loans for studying abroad. Read Google reviews, read answered questions on Quora, read the reviews on the websites of the banks and non-banking financial companies (NBFCs) and even ask your colleagues, friends, or relatives that you know have taken student loans.

2)      Compare interest rates- As in the case of other loans like car loans, home loans, etc., there is an interest rate that is applicable to the student loan. The interest rate is the amount the bank or NBFC charges as interest to the person who takes out the loan, which is usually expressed as a percentage of the loan. Different banks and non-banking financial companies (NBFCs) have different interest rates. Go on the individual websites and compare the interest rates to make sure you get the best deal.

3)      Choose the bank or non-banking financial company that has repayment benefits- Not all banks or non-banking financial companies (NBFCs) offer repayment benefits. Choose the bank or non-banking financial company (NBFC) that allows a tax paying citizen to get a deduction post repaying the interest on the student loan. There is no maximum limit for claiming this deduction.

4)      Choose the bank or non-banking financial company that funds up to 90 percent of the entire education- In some banks, once the student loan has been approved, the funds go directly to the institution to pay for the tuition fees. These funds cannot be used for anything else such as the accommodation costs, travelling, etc. However, if you choose a bank or a non-banking financial company (NBFC) that funds up to 90 percent of the education, then the money goes directly into your account and you can sponsor all of the child’s educational needs.

International education is a dream for most students that is, unfortunately, left unfulfilled due to the lack of funds. Thankfully, student loans can make that dream come true. We hope you got all the information you needed to choose the best student loans for studying abroad! Good luck to you and your child!

Things Students Should Know About An Educational Loan EMI Calculator.

An education loan EMI calculator is something not all students know about. In fact, many borrowers don’t end up using this tool before applying for their loan! This is despite the fact that such calculators can help make light work of beforehand preparations. In order to spread awareness about this tool, the following article will tell you all there is to know, including what this calculator is, how to use it, the benefits of doing so, etc.

So what is an educational EMI calculator?

Of course, as the name suggests, it an online calculator that helps you compute the installments payable on your study loan. It will tell you every single installment you have to pay to successfully repay your loan.

Where do I find one?

There are a number of place where you can find an educational loan EMI calculator. To being with, your lender’s website should have one. Almost every aggregator site will also have an EMI calculator you can use. You could use both to double-check the numbers.

How do I use the calculator?

It’s extremely easy! Once you find the calculator, you have to simply fill in some simple details. These usually include the loan amount you plan on applying for, the tenure you will select and the interest rate of your loan. Then just hit enter and the calculator should throw up a comprehensive estimation of your EMIs.

What are the benefits of using such a calculator?

It helps plan your repayment: That’s right, with such a calculator and the results it provides, planning the repayment of your loan is a piece of cake. You know how much you have to set aside to cover the repayments of your loan. You can start cutting down on your expenses and figure out how to budget your income to meet the installments.

It helps you check your affordability: Do not confuse eligibility with affordability. Eligibility is the decided by your loan worthiness whereas affordability is decide by your financial capacity. What this means is that, you might be eligible for a certain loan amount, but you may not be able to afford the installments for the same. The educational loan EMI calculator will tell you how much the EMIs are and you can take a call on your affordability.

It saves you time and energy: If you were to calculate your EMIs mentally, without the help of this tool, it would suffice to say that it would take you forever. You’d have to juggle reducing balances with complex formulas and could end-up tearing your hair out. This is something the tool offers to do for you in seconds and for free!

So there you have it! We hope we have given you enough of reason to try one of these tools before you apply or you student loan. Besides for the educational loan EMI calculator, you can also use the eligibility and repayment calculator to further bolster your planning and preparation.

Hope this has been helpful, good luck and all the best!