Benefits of education loan in India

Education abroad is widely recognized as a cornerstone of life, shaping individuals’ futures and unlocking countless opportunities. It is often viewed as a pathway to success, offering invaluable knowledge and skills. While education itself is a form of wealth, the true value lies in quality education. 

An increasing number of students are choosing to study abroad to access such education. Recent RBI data reveals a significant surge in the enrollment of Indian students in overseas studies, which is anticipated to rise from about 1 million in 2019 to potentially 2 million by 2025.

This highlights the growing preference for skill-based education overseas. Lets take a look at some of the benefits of getting education loans for study abroad in India. 

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Benefits of Indian education loan: Features

• Financing education abroad poses a significant challenge, often addressed through student loans.
• Various establishments offer education loans, with public sector banks dominating the marketplace.
• Financial lenders typically provide benefits like low interest charges, no pre-payment fee, and minimal processing fees.
• Private sector banks and NBFCs (non-banking financial firms) are also emerging as viable options.
• Private banks regularly offer advanced customer support, albeit with higher interest costs and quicker processing time.
• Loan applicants or co-applicants can benefit from tax exemption on the Indian education loan option under Section 80E of the Income Tax Act 1961, allowing them to deduct a portion of the interest paid from their gross income.

Benefits of Indian Bank education loan by Government banks:

• Lower interest rates: Government loan providers of overseas education charge lower interest rates than private banks for education loans.
• Longer repayment terms: Government banks can extend repayment terms for international student education loans, usually to 15 years, making it easier for students to repay debts and reduce monthly payments.
•  Moratorium period: Government banks often provide a moratorium period on international education loans, allowing borrowers to start reimbursement after completing their studies and securing employment, making the transition period less demanding. 
• Subsidy schemes: Government banks offer various subsidy schemes for international education loans, together with interest subsidies for the economically weaker segment (EWS) college students, lowering the general debt value.
• Collateral-free loans: Government banks expand no-collateral education loans up to a certain amount, typically ₹7.5 lakhs, eliminating the need for borrowers to provide protection for the loan. 

Benefits of education loans for Indian NBFC banks:

• Curriculum Flexibility: Non-Banking Finance Companies (NBFCs) offer flexibility regarding the types of programs eligible for education loans, covering a wide range of applications globally.
• Loan Coverage: NBFCs provide education loans that cover 100% of tuition fees, travel charges, lab charges, housing, books and gadgets, library expenses, caution deposits, and different relevant expenses
• Loan Procurement: Compared to traditional banks, NBFCs provide greater accessible terms and simple processes, making it less complicated to get loans for unconventional educational pursuits.
• Processing Time: Financial establishments, in particular NBFCs, expedite the loan approval process no matter the program type.
• Processing Fees: NBFCs usually charge a processing fee of 1% to 2% of the loan amount.

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Benefits of education loans by Indian private lenders:

• Higher Loan Amounts: Private banks generally provide bigger loan amounts for international education than government banks, covering lessons, charges, and living fees. 
• Competitive Interest Rates: Private banks typically provide competitive interest rates compared to government banks, allowing college students to save money on loan payments in the long run.
• Faster Loan Processing: Private banks generally have faster loan processing times than government banks, which is beneficial for college students wanting to make a one-time investment in their studies overseas.
• Personalized Service: Private banks provide personalized help throughout the loan application process, which is particularly useful for college students unfamiliar with the procedure or people with complex financial situations.

Highlights of Indian education loan options for different banks

Financing solutions are tailored for students pursuing education abroad while paying in Indian Rupees (INR).

Conclusion

In conclusion, opting for an education loan shifts the responsibility of repayment onto the student upon completion of their studies and the moratorium period. This not only relieves parents of financial burdens but also fosters a sense of accountability and financial independence in the students.

Ready to make your dream of studying abroad a reality? Let Nomad Credit be your guide to unlocking the best INR loan options tailored specifically for your educational journey overseas. 

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