Introduction
Education from a reputed institution is the biggest dream for any aspiring student. But this dream of higher education is jeopardized due to the increasing cost of education worldwide. This higher cost of education compels students to seek external financial support in the form of student loans.
A student loan originated to help students pay for their higher education and its cost. Like tuition fees, books, living, and other expenses. Students can get a student loan from any public/private banks, NBFCs, or private finance companies. For the best student loan in ahmedabad connect AGIL Finance.
There are many advantages of getting a student loan. And here we will learn about these advantages in detail.
Advantages of taking a student loan
1) Low-interest rates
The interest rates play a very significant role when you are contemplating to apply for a loan. But you don’t have to worry about interest rates when you choose to go for a student loan.
The interest rate on a student loan is much lower than on a personal loan. Above that, the government also provides a subsidy to the students who belong to underprivileged backgrounds.
2) Tax benefits
Another substantial advantage of applying for a home loan is tax benefits. Section 80E of the Income Tax Act, 1961 states that interest paid on an educational loan is entirely exempt from the total income. Another benefit of student loans is remittance on Tax Collection at Source(TCS). You usually have to pay 5% tax as TCS if the money you sent abroad is above Rs.7 lakhs. But if you have taken a student loan, you have to pay only 0.5% tax as TCS.
3) Long moratorium on repayments
The term moratorium refers to the period of time during which students do not have to begin paying EMIs on their education loans. The moratorium period on a student loan is much more extended than on a personal loan. With a student loan, you will get a moratorium period which includes your course duration plus a maximum of 12 months of time. This long moratorium period will help students stay more focused on their studies instead of taking tension on EMI payments.
4) Protect your funds
This increased cost of education obliges parents to liquidate their valuable assets. Such as gold, Fixed deposits, land, or other property to pay high education fees. But when you decide to take a student loan, you don’t have to worry about liquidating your assets. You can protect your funds to utilize them for other long-term future goals.
5) Develop self-dependence
The most significant aspect of a student loan is it infuses a sense of responsibility and self-dependence into the student. Qualities such as responsibility and self-dependence in students will make them more focused on their studies. And teach them financial discipline. Besides, a student loan will reduce the financial burden on parents.
Conclusion
After learning about the advantages of acquiring a student loan, we can anticipate that this knowledge will guide you to make a wise decision regarding applying for a student loan. And if you have already made up your mind about applying for a student loan, then a student loan from AGIL Finance will prove an excellent choice. AGIL Finance is one of the best finance companies in Ahmedabad. At AGIL Finance, we offer lending services ahmedabad and mortgage services in ahmedabad. Contact us at info1@agil.co.in to avail of our services or take help from our expert education loan agent in ahmedabad.
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