Many Indian learners dream of a foreign degree from a highly ranked international university. However, the high costs—from very high tuition fees to day-to-day living expenditures—often make this dream out of reach for many. Education loans make studying overseas possible for deserving students by covering the full costs.
Read on to learn how they are making top international education more accessible.
Reasons Why Education Loans are Useful for Foreign Studies
Here are the reasons education loans enable students to fulfil their global education dreams – they provide structured financing to make reputed international universities accessible and fund invaluable experiences abroad.
1 Make Expensive Degrees Affordable
Overseas degrees often have steep tuition fees and living costs. An abroad education loan covers these significant expenses so deserving students can study abroad without financial worries. These loans help students join leading global universities for bachelor’s or master’s degrees by covering the significant expenses.
2 Flexible Repayment Plans
Overseas study loans offer long repayment periods after completing the course, making monthly instalments manageable. Using an education loan EMI calculator, students can assess their repayment commitments and choose EMIs aligned with their expected income, ensuring financial stability during repayment.
3 Collateral is not Always Needed
Public sector banks provide overseas education loans up to Rs 7.5 lakhs without collateral. This makes quality foreign degrees possible for middle-class students, too. A co-applicant may be needed for higher loan amounts between ₹7.5 lakhs to Rs 1.5 crores. However, these loans involve lower risks for banks due to good career prospects.
4 Assured Tax Rebates
Borrowers can claim tax deductions on interest paid under Section 80E of the Income Tax Act without upper limits. In the initial repayment years, tax savings on the high-interest amount provide significant tax decreases. Also, no GST applies on overseas education loans, further easing repayment.
5 Can Club With Scholarships
Students can combine scholarships and loans, and the scholarship amount helps reduce overall loan requirements. Students should check specific lender policies about this.
6 Funds Additional Costs
Financing is also needed besides tuition fees, daily living costs, health insurance, books, etc.. Most education loans cover 100% of acceptable expenses for an overseas degree within limits. Students can also take out loans if they need more finances.
7 Wide Course Eligibility
These loans fund extensive professional and specialised courses like engineering, medicine, management, artificial intelligence, etc. Short-term diplomas from recognised recognised foreign institutes are also eligible. Students can access global education in subjects they want.
8 Switch Lenders if Needed
Students can seamlessly transfer their overseas education loan to another bank if dissatisfied with the services. The new bank settles the old loan and continues repayment on existing terms. This facility ensures students can always find the most suitable loan.
Conclusion
Overseas education loans simplify the financial aspects of studying abroad. Students can focus on academics and career enhancement rather than costs. Leading banks customise such loans with flexible repayment, tax savings and more. The proper funding can help you access world-class global education and opportunities.
