As such, Education loans to study abroad become an easier way to secure
funds. The following points helps you gain some insight into why exactly you should consider
applying for an education loan for studying abroad:
Education
loan is one of the priority sector under which banks are required to lend by the Reserve Bank
of India.
Students applying for education loan for education abroad can avail tax benefits under
section 80 (E) of Income Tax Act 1961. Some of the highlights of this Act are:
a. Loan should be taken from approved
financial
institution
b. Loan should be for full-time studies
for any graduate
or postgraduate course.
c. Deduction is allowed for a continuous
period of eight
years.
The
loans provided for education usually cover the following areas:
a. Institution Fee
b. Hostel Fee
c. Examination Fee
d. Library and Laboratory Fee
e. Purchases of Books
f. Equipment and Instruments
g. Caution or Refundable Deposit
h. Passage money to the host country.
Most
of the banks provide an average of 7 to 12 years for the candidates to repay the education
loan.
An
aspirant can expect to be provided with atleast 20 to 40 lakhs for pursuing his/hers studies
abroad.
