How an education loan is good for your finances in the long runby Arjun Pal Student
One of the biggest reasons why so many families in India – especially from the underprivileged social strata – have access to education is the phenomenon known as education loan. This is especially true when you consider higher education which happens to be the costliest form of education all around the world. What you may not know is that these loans can also be beneficial when it comes to turning around the financial futures of your family.
It brings great income
We have already alluded to the extra expenses that are incurred in higher education in general. This is especially true for the vocational courses as well as other ones where the graduates are in high demand such as management, doctor, engineers, etc. This means when you take loans to gain entry in these courses and graduate successfully you can get jobs where you get a lot of money. This benefits you in the long run as you can build up wealth and help your family lead a much better life.
You get tax benefits
You may not know this but you get tax benefit on education loan as well. This benefit is provided by Section 80E of the Indian Income Tax Act. As per this regulation, the interest that you pay for the loan can be deducted from your income tax. Kindly remember that the tax benefit is not provided for the principal that you are paying back for the loan.
You can build a good credit score
If you can pay the loan back properly it can help you improve your credit score as well. This helps you later on in life when you are looking to get a loan to start your independent business. The lenders in these cases trust you because you have already paid off one loan in full earlier on. So, this is one more way in which a study loan could be of benefit to you.
Most people in life are not born with a silver spoon in their mouths. So, they have to struggle hard to do well and realize the goals & ambitions that they have in life. They need all the help that they can get in life and this is where education loans, especially from the best service providers such as Axis Bank can be of much help for them. They become the tools that these people need to fulfil the goals they have in life.
Created on Nov 1st 2021 07:10. Viewed 96 times.