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What’s so special about education loans?

More and more students are opting for education loans these days! It has become the preferred finance solution over personal loans and a loan against property for those looking to pursue their further education. But why is this so? What makes a personal loan so special? Letu2019s find out!

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What’s so special about education loans?

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  1. What’s so special about education loans?

  2. More and more students are opting for education loans these days! It has become the preferred finance solution over personal loans and a loan against property for those looking to pursue their further education. But why is this so? What makes a personal loan so special? Let’s find out!

  3. Moratorium period Another very unique and helpful feature of education loans is the moratorium period. This period refers to a sort of ‘EMI holiday’ wherein students do not have to pay any instalments. This period usually lasts until 6 months after the student has finished his or her education or found a job. Only after the moratorium period is over will the EMIs begin.

  4. 100% finance Personal loans will offer one-time finance. However, education loans will step in to cover any of your education loan related finance requirements as and when they pop-up. This ensure that everything from entrance exam costs to the course fee and everything in between such as travel & living, purchase of laptop, study material, etc. is covered by the education loan!

  5. Lower rates The rates of an educational loan are quite low. This is probably one of the biggest reasons why education loans are become so popular. Personal loans have rates as high as 16 or 22 percent and a loan against property also has rates upwards of 10%. However, education loans are made available at rates as low as 8 or 9 percent per annum.

  6. Special benefits for academic brilliance Other loans will not offer any benefits if you have a good academic record or if you’ve out performed others in your entrance exams. However, most education loans will recognize your brilliance and offer you lowered interest rates, higher loan amounts or discount processing fees!

  7. Tax benefits Both personal loans and a loan against property will have no tax benefits. They just offer a finance solution to cover the cost of education. On the other hand, student loans will help you bridge your finance gaps and also help you save a considerable amount of money through tax benefits as well. With an education loan, you can use the total interest paid to known of an equal amount from your taxable income under section 80E of the Indian Income Tax Act.

  8. So to manage your finances in a better way, it is always advisable to use a student loan calculator. Hope this article has given you the understanding you need of student loans. Good luck and all the best! Related Blog:- Types of education loans

  9. Facebook:- https://www.facebook.com/AvanseEducationLoan/ Twitter:- https://twitter.com/avanseeduloan YouTube:- https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug Instagram:- https://www.instagram.com/avansefinancialservices/

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