5 reasons an overseas education loan is a great way to finance your studies abroad.

There are thousands of students who prefer to move abroad in order to pursue their further studies. Any plan to study further requires a lot of planning especially since education costs have become very expensive. Keeping in mind that we are talking about pursuing an education in an abroad education, you would most likely require an overseas education loan for all the expenses.

For such expenses, the most common solution for any student is to go for an overseas education loan which will take care of your education loan. However, there are many who are sceptical about this move as they are unsure whether an education loan would be helpful.

Read the following reasons to find out for yourself whether an overseas education loan can actually be helpful or not:

1) You can get 100% financing

We all know how expensive pursuing education can get. We have to worry about the hefty tuition fees of the university, the cost of the study material, library fees, extra projects, and so on could sum up to quite an amount. Now, banks will only cover up to a certain amount, beyond which you would have to take care of the funds with your own expenses. But if you take an overseas education loan from an NBFC (Non-Banking Financial Company), you can get 100% financing, which means that you can get covered for not only your academic expenses but also your non-academic expenses.

2) You can get unsecured loans

Many of us think that taking a loan would require providing collateral. However, this is not true. Banks do require collateral if the loan amount that you are applying for crosses the amount of Rs.7.5 lakhs. Since we are talking about pursuing education overseas, chances are that you would require a much higher amount. But this is not the case with NBFCs. Any good NBFC would provide you with an unsecured overseas education loan, which means that you do not need to provide any collateral.

3) You can build your credit score for the future

As we all know, a credit score is very important for any borrower looking to apply for a loan, no matter what type it is. An education loan would be the first loan that most borrowers generally apply for. This is a great way to get a good start on building your credit score for the future.

4) You can opt from numerous repayment plans

Before you apply for an overseas education loan, you need to make sure to choose a repayment plan that you find suitable. Any good financial institution should offer you multiple repayment plans so that you can choose one that you are comfortable with and have no problems in paying the loan back.

5) You can get tax benefits

According to Section 80E of the Income Tax Act, the interest that you pay for your education loan can be claimed for tax deductions. This means that you are also getting tax benefits when you apply for an overseas education loan. We hope that this article brings clarity on overseas education loans. All the best!