Here are 3 exclusive benefits of an educational loan.

The cost of education is rising quickly. This has made it extremely difficult for some students to pursue their higher education. The situation looks even more uphill in case you plan to study overseas. Fortunately, there are a number of finance solutions available today. You can opt for personal loans, mortgage loans and educational loans to bridge your financial gaps and achieve your dreams.

However, which one of these loans is best suited for you? If you ask your friends and family, they might all provide contrasting views. This can leave you confused and unsure how to proceed. Keeping this in mind, the following article will help you make an informed decision by highlighting 3 huge benefits that only education loans can provide you.
 
1. Tax benefits:

Between the 3 finance solutions mentioned in the introduction, only educational loan offer the student tax benefits. This means that, in addition to covering your course fees and all your other education-related expenses, these loans also help you put some money back in your pocket. They are, in essence, a double-sided sword that helps you cut through the cost barrier and achieve your dreams. This benefit is provided to you under Section 80E of the Indian Income Tax Act. It allows you to deflate your taxable income by an amount equal to the total interest you pay in a year.

2. Moratorium period.

This is another huge benefit that only educational loans offer. A moratorium is just a finance term for an EMI holiday. It is a period where you can bid farewell to your monthly instalments and focus on your education goals. Some moratorium period can extend until 6 months after you’ve found a job as well. This allows you to settle into your job, cover other expenses and then switch back to your EMIs when you are financially ready.

3. Preferential benefits.

Just like a personal loan or a mortgage loan, an educational loan will also reward you if you have a strong financial background. The same applies if you have a co-borrower with a good financial profile. In either case, you can get lowered rates or higher loan amounts. However, when it comes to educational loans, you have an added benefit. Most of the leading finance companies will offer additional benefits if the applicant has a good academic record or excellent entrance exam scores.

Besides these 3 exclusive benefits, you can even get an education loan without collateral. Some lenders will provide you with 100% finance without any upper limit on the loan amount. This ensures that you can cover the course, living expenses, purchase of a laptop, etc. with ease. You can also expect fastest sanctions with an education loan. Some lenders will also offer doorstep services to speed up the process.

So as you can see, an educational loan has plenty of benefits to offer students like you. Therefore, if you are looking for finance solutions to cover the cost of your studies, look no further than a student loan. 

Good luck and all the best!