Why taking an education loan is a wise decision.


An investment in knowledge pays the best interest! Therefore, if you’re planning to pursue your higher education, it is indeed a wise decision. Now, you can make this already smart decision, a smarter one by taking an education loan to cover the cost. Doubtful?  Let us explain why this is a good idea even if you may have the money to cover the costs on your own.

1. You’ll have money for emergencies.

Some students have their parents turn over all their funds to cover their education-related costs. But what if something were to happen? What if you suddenly need money to cover a medical emergency or some other financial exigency? You might be in a real squeeze then, but not if you take an education loan. This is because you will have all your savings intact and money to spare in case of an emergency.

2. Stay invested.

Another big benefit of taking an education loan is that you do not have to liquidate your assets. You can stay invested and continue to enjoy your returns while you fund the course fee and other expenses through the loan! Even if you have modest investment instruments, you should make enough returns to almost offset the interest of the education loan.

3. Tax benefits.

If your investments do not help you completely offset the interest of the loan, the tax benefits could surely help! This is because education loans are entitled to tax benefits. They allow you to use the annual interest amount to gain an equal amount of deductions from your taxable income. This will help you deflate the total amount of tax you have to pay considerably, every year, until the tenure of the loan comes to an end! 


4. 100% finance!

Another huge benefit of taking an education loan is that it will provide 100% finance. This means that you will get complete financing, without having the need to furnish any sort of down payment or margin money!

5. End-to-end financing!

This is one more huge reason why taking an education loan makes so much sense! It leaves you with nothing to worry about. Many lenders will cover not just the course fee but also other miscellaneous education-related expenses such as the cost of a laptop, the purchase of study material, entrance exam fees, travel & living expenses and more! This ensures you can give your 100% to your studies and not have to worry about paying for your education-related expenses.
6. Good for your credit score.

Taking an education loan will also build your credit score. If you repay your education loan emi amounts on time and without any hiccups, your credit rating will receive a huge boost. This will help you get loans with ease in the future! If some reports are to believed, your credit score will also be linked into insurance premiums and many other things, making an extremely helpful thing to have!

Hope this has been helpful, good luck and all the very best for your education!


Related Blog :- Advantages of Taking An Education Loan

Comments

Post a Comment

Popular posts from this blog

5 Handy Tips For Your Student Loan Application

Image
Going abroad for further studies can open up a wide world of opportunities for you. Maintaining a good academic record is a part of the process of gaining admission to foreign universities. You also need strong finances to back you up. While bank financing can be a real blessing, you would require the right guidance when it comes to your student loan application to ensure that you get the best deal suited to you. To help you out, we have listed five handy tips to follow for your student loan application. Figure out your paying capacity Before taking out a student loan, you should figure out how you plan to pay for it. If your parents are helping you with payments, do sit together and run up an approximate calculation. Also take into account the average salary that you might earn as soon as you graduate. This will help you plan your expenses and let you know how much of your salary will go into paying back the loan. Additionally, this calculation will also help you figure if ...
Read more

Here are few tips to get a lower interest rate for education loan plans.

Image
There are a lot of us who ponder over taking an education loan. Most worry that they are going to get stuck with a bad loan plan because of which they would face a lot of problems. This has been a major issue, as those that face trouble in paying their monthly installments take a hit on their credit scores. This mostly happens due to the high interest rates that are applied to the education loan that we take. But since taking a loan is very important since our future depends on it, you should not back down from taking a loan. As far as the interest rates are concerned, there are ways in which you can play it smart and get a good interest rate for education loan plans. Has this got your attention? Read on: Compare between the various lenders - Always keep in mind that you do not have to take a loan from the first lender that offers a loan plan to you. There are numerous lenders out there, and this gives you the upper hand as you can choose among those lenders that prov...
Read more

A Guide To Education Loan Criteria

Image
A quality, well-rounded education is extremely important for any individual that wishes to make something of themselves in today’s world. And students today are well aware of that. That is one of the major reasons that many students go above and beyond to educate themselves as much as they can. However, among the many obstacles they face, the rising cost of education is one of the biggest one. In such a situation, the best solution is to apply for an education loan. An education loan is basically money borrowed by students for their educational requirements. It is also the abundantly available option for funding your education as most banks and NBFC’s offer education loans. However, just because the option is available does not mean you can just opt for it.  Most lenders have a rigid set of education loan criteria that every applicant needs to fulfil. Here is a set of criteria that every applicant must fulfil to avail an education loan: Applicant- - An applic...
Read more