The most critical decision in life is when
you must pursue a higher degree or further studies, and you are wondering if an
education loan is your best bet.
There is a lot of research and due
diligence that goes into applying for an education loan in India,
and it is in your best interest to know precisely what you are looking to study
before you apply for a loan. Following are some tips to get started –
One of the first things a student must do
is narrow down their course prospects and research on the 2-3 courses that they
wish to pursue. Based on your study of the course, their curriculum, institute,
and job opportunities, you can then finalize one direction.
Once you know the course you wish to
pursue, it is essential to decide the institute/college and the country you want
to pursue it in.
Based on the course and the institute you
want to pursue it in, you can then get an estimate of the course fees and find
out exactly how much you’ll need to pay over the term.
You can also find out if the college you
are applying to, has provision for scholarships or any other financial aid
provisions. Scholarships are one of the best ways to reduce the education loan
burden.
Additionally, you can also check for
entrance exams and their fees, if any.
When it comes to study loans, keep the
following points in mind:
There is a provision of starting EMIs a
year after the course finishes or six months after the student is employed, and
you must make a physical note of the same.
If you have the desired provisions and can
pay before the stipulated term, then you should start paying EMI even during or
before the moratorium period offered by the loan providers. This way, the
interest will not accumulate further in this period.
You can try to reduce the amount you pay as
a monthly instalment by increasing the loan period, but that will also increase
the total interest you end up spending on your overall loan. So, if you are
ready to pay more over your total sum borrowed, then you can ask for longer
payment tenures as well.
There are ample tax benefits that you can
avail under 80E of the Income Tax Act, on your loan. Once you have landed a job
after completing your course, get your tax working from your company and do not
forget to provide your student loan details to be able to avail tax benefits
every year.
