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Updated by shreya arora on Jan 26, 2023
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Benefits of Education Loan

Education loans for studying abroad in India are financial assistance options offered by various banks and financial institutions to assist students in covering the costs of their higher education in other countries. These loans are intended to help students pay for tuition, living expenses, and other costs related to studying abroad. They frequently offer a flexible repayment period and are available to students who meet specific eligibility requirements, including as a strong credit score and a co-signer.


No collateral Required:

Education loans for studying abroad, unlike other types of loans, do not require collateral.


Tax Benefits:

Interest on education loans paid by the student or parent is eligible for tax benefits under section 80E of the Income Tax Act.


Building credit history:

Applying out an education loan and repaying it on time also helps students build their credit history, which can be beneficial in the long run. It may also provide opportunities to apply for additional loans in the future.


Eligibility criteria:

Students who meet specific eligibility criteria, such as having a decent credit score and a co-signer, can apply for an education loan.


Low-interest rates:

Education loans for international study commonly have low interest rates, making them a more affordable option than other types of loans.


Flexible repayment options:

Many education loans for studying abroad provide flexible repayment options, such as extending the repayment period beyond the completion of the course. This allows students to gain experience in the workforce before beginning to repay the loan.


Easing the financial burden on students and their families:

Students and their families may face substantial financial challenges when pursuing a foreign education. Education loans can help to alleviate this load by providing financial aid to cover tuition, living expenses, and other costs involved with studying abroad.


Covering the high costs of tuition fees and living expenses:

Studying abroad may be a costly endeavor, with costs frequently reaching tens of thousands of dollars. Education loans for studying abroad can assist to offset these costs, making a foreign education more affordable for students.