Education Loan

Education loans make funding for studying abroad more accessible and manageable. Here are some key reasons why applying for an education loan for overseas studies is a worthwhile consideration:

Priority Sector Lending:

The Reserve Bank of India (RBI) categorizes education loans as a priority sector, ensuring banks allocate resources for such purposes.

Tax Benefits under Section 80(E) of the Income Tax Act, 1961:

Students availing of education loans for studies abroad are eligible for tax deductions. Key highlights of this provision include:

• The loan must be from an approved financial institution.
• It should be for full-time graduate or postgraduate programs.
• The deduction is available for a maximum period of eight consecutive years.

Comprehensive Coverage:

Education loans typically cover:

• Tuition fees for the institution.
• Hostel accommodation expenses.
• Examination fees.
• Library and laboratory fees.
• Cost of books.
• Equipment and instruments.
• Caution or refundable deposits.
• Travel expenses to the host country.

Flexible Repayment Tenure:

Most banks offer a repayment period of 7 to 12 years, making it easier for students to manage their finances post-graduation.

Adequate Loan Amounts:

Students can secure loans ranging from ₹20 to ₹40 lakhs, providing sufficient financial support for their overseas education aspirations.