- If you’re paying off a training loan, you might allege tax deduction on the title loans Cordova interest purchased upwards to 8 many years you/s 80E
While a daddy otherwise a student looking to just take an education loan, here are a few factors to consider:
Amount borrowed: Education loans usually cover the course fees and other expenses associated with getting an education overseas such as living expenses, examination fees, study material, travel expenses, and insurance.
You can purchase loans varying anywhere between ? 20 lakh or over so you can a total of ? 1.5 crore Very lenders discuss the expenses included in the mortgage number and you will students should be diligent about ensuring all of these expenditures also are utilized in plans. So it decreases the financial burden regarding an offshore studies considerably.
Margin money: A student must finance a fixed part of the financial requirement, or margin money,for overseas education and avail of an education loan for the rest. Some lenders do not even require the student to contribute such margin money. Others require the margin to be brought in on a year-on-year basis as and when disbursements are made on a pro-rata basis.
Rate of interest: Interest rates on overseas education loans depend on the tenure and ticket size of the loans. Loan providers also consider the students’ repayment capability, merit-worthiness, and job prospects after their education to ascertain the rate. Interest is calculated using simple interest and most lenders provide a floating interest rate that is their own base lending rate plus a spread. The interest rate ranges from 6.6% to 24%.
Equity: An overseas education loan can either be secured or unsecured. If a student takes a secured loan, a tangible collateral has to be provided as security in case the person defaults on repayment. Read more