What are the Top 5 Advantages of Taking Education Loan?


The student, along with her parent, guardian, or a third-party guarantor, applies for education loans or student loans. The loan is intended to cover all expenses incurred while studying, such as admission, tuition, examination, and library fees; boarding and lodging; the cost of computers, books, and other equipment; travel expenses, and health insurance.

 

Low Rate of Interest

Interest rates are a major factor in deciding whether or not to take out a loan. Study loan interest rates are generally lower around the world, and they can be very low in India as well, particularly from public sector banks. They can be even less costly for people from low-income families, due to a government grant that covers the interest on the loan for the duration of the loan.


Easy Availability of Education Loan

The student, along with her parent, guardian, or a third-party guarantor, applies for education loans or student loans. The loan is intended to cover all expenses incurred while studying, such as admission, tuition, examination, and library fees; boarding and lodging; the cost of computers, books, and other equipment; travel expenses, and health insurance.

 

Safeguarding Your Savings

Taking out an education loan allows you to keep your savings intact, allowing you to pursue long-term financial goals such as a retirement fund, a child's wedding, or the purchase of a home. It will ensure that you are no longer financially dependent on your children after you retire.


Loan Moratorium EMI

During the loan term, the borrower is granted a moratorium period, which is similar to a vacation. They are not required to repay the loan during this period. In the case of education loans, the borrower is given a moratorium period ranging from 6 months to 1 year from the date of course completion. This gives the borrower ample time to search for a good-paying job and raise enough money to begin repayment of the loan. 


Self-reliance

The most an advantageous feature of a study loan is that it teaches a student to be self-reliant in their studies. Study Loan has an additional advantage of relieving the financial burden on the parents of a student. In this context, various platforms like EmpowerYouth are always there to help students to start their education without any burden or stress.

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