Students wish to pursue education in reputed institutions to acquire quality education in India or abroad. The expenses of education in India is around 25lakhs, while in abroad universities it goes up to 1 crore. Due to low capita income of majority of the population, there is lack of funds with parents provided very less amount of income goes into saving because of inflation. Students tend to compromise with their choices or drop out for a year so that they can work and save money to fund their own education. Students should be told the benefits of student loans in India.
1) Students after approval of their student loan do not have to juggle between work responsibilities and studies. Educational helps in making student independent and takes care of student’s need so that they can excel in academics.
2) Student loans in India help you to pay tuition fees, hostel fees and also to add educational books, travel expenses, uniform or your educational trips. Almost 90% of educational expense is covered in it, which saves a lot of money from parent’s financial saving which is a great relief.
3) The process of getting student loans in India is very simpler as it requires minimum documents- couple of passport size-photographs, identity and residence proof documents which are Aadhaar and PAN card, score card of the exam you have qualified, confirmation letter from the university along with details of fee or any scholarship you have availed and it should include details of course.
4) The process of applying forstudent loans in India is also quite simpler because one does not have to provide any collateral or it does not require any third party guarantee which is quite advantageous for students because they do not have any past savings in large amount or credibility to give collateral.
5) Student loans through banks or NBFCs provide students with credit score when repayment of loan begins. When you start repaying loans through EMI on time, credit score is improved and maintaining good credit score will help in taking loans in future and enhance your credibility.
6) According to Income-Tax article 80E, the interest you pay for student loans in India helps in acquiring benefits of tax-deduction from the total amount.
7) Major advantage of student loans in India is that it provides sufficient moratorium wherein you have to start repaying your EMI after 6 months or 1 year of completing course. This concession gives time to students who are searching for good job opportunities so that they can save money and make arrangements to repay EMI and lessen their burden.
8) Student loans in India through banks or NBFCs are not only applicable for local institutions but also for overseas colleges, the money can be accessed in foreign land also.
I hope this article helps you to understand the widen horizon of student loans in India and its broad benefits to the students and also to their parents. Make a wise choice rather than making compromises in education so that you fly high! Good luck.