These days, students lack sufficient collateral to offer as security when applying for student loans. For students looking to apply for an unsecured loan through government banks who are having financial difficulties paying for their education.
The most extensive platform in India for matching prospective government financial institutions with students pursuing education is taking help of education loan providers in India. However, a student must first gather all necessary information before submitting their loan application, since we pride ourselves on offering services that are both clear and transparent.
Our goal is to assist students throughout India in obtaining an unsecured loan. Learn about all the advantages of education loans and the key characteristics of student loans in this article.
Benefits of Education Loans in India
Financial Benefits
Students who take out an education loan benefit from Section 80E of the Income Tax Act of 1961. According to this, by disclosing the specifics of their student loan repayment, loan applicants or their co-applicants may be eligible for a percentage exemption on their annual income tax payment. It would relieve the strain and do away with the requirement to sell off your investments.
Pay after Education
One benefit of student loans is a moratorium period. Also referred to as a repayment holiday, the moratorium period allows the borrower to avoid making payments while they are pursuing their education. Banks are not allowed to force students to pay EMIs throughout their study term; only those who are willing to do so may do so. Because they don't have to worry about money throughout their study time, students may finish their coursework, get employment, and then make the necessary repayments.
A Wide Range of Expenses Covered
The fact that an education loan can be used for a variety of costs is its greatest benefit. It covers living expenses, food costs, tuition, fees for the institution, transport costs (both ways), study materials, laptops, library fees, and a host of other things for students.
Education Loan Subsidy Schemes
Benefits of study loans include the government of India's introduction of education loan subsidy programmes to assist students from economically disadvantaged backgrounds. Programs such as CSIS, NMDFC, NSCFDC, NSKFDC, NBCFDC, and others. To learn more about all of the programs offered in India, students should read the page on Education Loan Subsidy Schemes in India.
Build your CIBIL score
Students have a fantastic opportunity to establish their credit history when they assume responsibility for loan repayment. The student can produce a strong CIBIL report if they uphold discipline and regularity by making their EMI payments on time. Before making a loan offer, banks typically take the applicant's profile and CIBIL history into account. You can get lower interest rates and larger loan amounts in the future with a strong credit score.
These are a few advantages of education loans available to students studying in India. The majority of the time, branch managers at government banks do not adequately inform students about the advantages of taking out an education loan. For instance, a moratorium period suspends the borrower's obligation to pay the lender for that time. However, banks frequently overlook these, forcing students to arrange money to cover basic interest while they are in school.
Consequently, it is recommended that students apply through education loan providers in India, as their staff has been collaborating with several renowned government banks to facilitate a simple and hassle-free application procedure for students.
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