In India, the cost of education is ever increasing. It is difficult for an aspiring student to finance his/her education and availing an education loan has now become a necessary norm for all students.
An education loan covers the tuition fees as well as other expenses. However, availing an education loan against property helps to remove any end-use restrictions. This helps in enhancing the monetary strength of a borrower who can use the funds to deal with any financial emergency.
Benefits of education loan against property –
Tax benefits Under Section 80(E) of Income Tax Act, the payable interest on your education loan qualifies for income tax deduction. You can claim deductions on your income tax with this feature for up to 8 years.
However, in order to avail the above tax benefits you need to make sure of the following –
1. The financial institution, to which you are applying for the education loan against property procedure, has to be authorised by the Central Government for granting tax benefits to your loan repayments.
2. Tax benefits are only applicable for education loans that help a borrower to finance their education costs after passing their senior secondary examination.
Coverage
An education loan against property not only covers the cost of the learning course but also other expenses like –
1. Tuition fees, hostel fees, library fees, examination fees, etc.
2. Cost of books, uniforms and other essentials.
3. Purchase of laptops if necessary.
4. Travelling expenses.
For education loans against property, borrowers can avail a moratorium period of 6-12 months from the date of completion of the educational course. This provides the borrower enough time to gain employment and start the repayment process of the education loan. Understand how a loan against property for education works and refer to leading lenders to avail the most beneficial loan terms.
An education loan covers the tuition fees as well as other expenses. However, availing an education loan against property helps to remove any end-use restrictions. This helps in enhancing the monetary strength of a borrower who can use the funds to deal with any financial emergency.
Benefits of education loan against property –
Tax benefits Under Section 80(E) of Income Tax Act, the payable interest on your education loan qualifies for income tax deduction. You can claim deductions on your income tax with this feature for up to 8 years.
However, in order to avail the above tax benefits you need to make sure of the following –
1. The financial institution, to which you are applying for the education loan against property procedure, has to be authorised by the Central Government for granting tax benefits to your loan repayments.
2. Tax benefits are only applicable for education loans that help a borrower to finance their education costs after passing their senior secondary examination.
Coverage
An education loan against property not only covers the cost of the learning course but also other expenses like –
1. Tuition fees, hostel fees, library fees, examination fees, etc.
2. Cost of books, uniforms and other essentials.
3. Purchase of laptops if necessary.
4. Travelling expenses.
For education loans against property, borrowers can avail a moratorium period of 6-12 months from the date of completion of the educational course. This provides the borrower enough time to gain employment and start the repayment process of the education loan. Understand how a loan against property for education works and refer to leading lenders to avail the most beneficial loan terms.
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