As a parent, your aspiration to give your children the best life possible will always be a priority. From managing their schooling, their tuitions to extracurricular activities, you try to get them the best of things. You do everything for them not because you want something in return; you do it because your child’s future is your responsibility. There is honour in raising a child and see them evolve and achieve their dreams. Amidst all the naughty things a child does, there is innocence and love after all.
In today’s world, everything is expensive. Be it your daily needs, or the foundations of a stable future, like healthcare, housing, and quality education. According to a source, the cost of education is increasing day by day. Being a parent, it is imperative to support your child’s dream. No dream is big enough to achieve if you plan and work for it. So, don’t be scared about the high cost of education when your child is passionate about something and has big aspirations. If your savings are not enough and you fall short on meeting the entire cost, an education loan rescues you out of the situation and helps you bridge the gap. Start your enquiry and search for the right education loan while your child is busy applying to their choice of institutions.
Let us guide you through all you need to know about an education loan and how it can fulfill your child’s dreams:
- Protection of savings
When you take an education loan, your savings are untouched, enabling you to achieve long term financial goals of retirement, children’s marriage, and getting a house of your own. Education loans give your children the right education to sustain their future and help you stay financially independent for retirement years. And, your child will not have any extra pressure from your side.
- Coverage for expenses
Not only does an education loan cover the course fee but also includes other necessary expenses like hostel fees, exam fees, lab fees, library charges and more. It also covers the expenses for books, travels, and additional costs related to the completion of the course. Education loans reduce your financial burden significantly and make sure your child’s education is completed unhindered.
- Tax Benefits
Opting for an education loan has its perks, one of the most important being tax exemption. The entire amount of interest you pay for an education loan qualifies for income tax deductions, under Section 80E of the Income Tax Act. You can claim this income tax deduction upto 8 years. Education loans for higher studies have this benefit of tax exemption, so don’t compromise on your child’s education.
- Postponement Period
Postponement or Moratorium period is like a break period given to you during your loan term. You don’t repay the loan during this period. Education loans usually have a postponement period of six months to one year after the date of completion of the selected course. This allows enough time for your child to get a job and save up enough to start repaying the loan.
- Credit History
Responsible repayment of education loans ensures a positive credit score. This shows your credibility to financial institutions. A higher credit score allows you to get future loans at a lower interest. So make use of the best of both worlds and get an education loan to fulfill your children’s dreams.
Let You Children Dream Big
Every parent intends to provide their child with the best possible higher education. Whenever you plan to get an education loan for your child, make sure you select a trusted and established financial institution. Axis Bank provides attractive deals and offers on educational loans and understands your needs. Let your child pursue their ambitions while your banking partner takes care of the rest.