Articles
What should you be aware of student education loan
by Kanika Shelatkar Insurance ConsultantEducation loan offers you the possibility of pursuing your
dream education but do comprehensive research on course, college and return on
investment before you go for it.
Sheetal Rawat, a physiotherapy student from Hyderabad,
recently completed her four-year course but is now apprehensive about repayment
of a 4-lakh education loan, which she took five years ago to finance her
studies. She is in desperate need of a job as repayment of the loan will start
in a few months.
There are a lot of students facing the same problem of
repaying loans in India, and there are several reasons behind this crisis,
including wrong college choice, low performance, a crisis of jobs, useless
degrees etc.
The amount of defaulting education loans in India
has risen over the past four years and is one of the causes of increasing bank
NPAs. Banks are the only source of capital when the parents are unable to
finance the higher studies, but one should look at the return on investment
before selecting a course.
So, if you plan to take a student education loan,
here is what you should know.
Benefits of education loan
Education is an investment for a middle-class family, and
students get more serious about learning when they have to manage the education
loan interest. Education loan also provides tax benefits under 80E Income Tax
Act. Many of us take a loan for better education and decent employment. Some
even take out loans because they do not want to place a financial strain on the
family. Therefore, if you can prove yourself and be able to repay on time, then
a loan for education is the best way to help you get a better education. Education
loan EMI calculator helps you to calculate the interest amount to be paid. Loans
are usually repaid within three to 10 years. It also depends on the bank and the
course you have selected.
Research about the college and course
Before taking an education loan, it is essential to look at
the job prospects. One major issue with today's education system is a meagre
return on investment for various higher education courses. It is prudent to do
some industry-oriented courses alongside conventional education to make you
more competitive in the job market. Do a fair assessment of the course before
taking out a loan. Think about the return on investment before enrolling for a
class.
Default on EMI
Sponsor Ads
About Kanika Shelatkar 
Insurance Consultant
11 connections, 0 recommendations, 73 honor points.Joined APSense since, March 18th, 2019, From mumbai, India.
Created on Apr 2nd 2020 03:35. Viewed 420 times.
