What are the Top 5 Advantages of Taking Education Loan?

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

 

Low Rate of Interest

Interestrates are a major factor in deciding whether or not to take out a loan. Studyloan interest rates are generally lower around the world, and they can be verylow in India as well, particularly from public sector banks. They can be evenless costly for people from low-income families, due to a government grant thatcovers 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 educationloans or student loans. The loan is intended to cover all expenses incurredwhile studying, such as admission, tuition, examination, and library fees;boarding and lodging; the cost of computers, books, and other equipment; travelexpenses, and health insurance.

 

Safeguarding Your Savings

Taking outan education loan allows you to keep your savings intact, allowing you topursue 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 financiallydependent on your children after you retire.


Loan Moratorium EMI

During theloan term, the borrower is granted a moratorium period, which is similar to avacation. They are not required to repay the loan during this period. In thecase of education loans, the borrower is given a moratorium period ranging from6 months to 1 year from the date of course completion. This gives the borrowerample time to search for a good-paying job and raise enough money to beginrepayment of the loan. 


Self-reliance

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

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