back in the day, going in for higher studies was a
choice but to get ahead in the world today, one has to pursue his or her
further education. The only problem is the cost; rising inflation rates and the
always increasing cost of education have made it hard to finance one’s further
education. In times like these, a loan is the best way to finance these dreams.
There are few options you can choose from when it comes to finding an option to finance these dreams. But among them all, two are very popular, the personal loan and the Students loan. People are often confused as to which one they should go for. Well, if you are one of these people then we have the answer; always go for educational loans. Wondering why? Read on, this article will give 5 reasons why an educational loan trumps a personal loan and why you should choose it!
First reason is moratorium period:
Moratorium period is the grace period given to applicants before paying their first EMI.Its maximum upto one year. It’s very thoughtful actually, as most students will take time to land a job and find a means to pay the loan, and till that time they don’t have to pay a single EMI. In case you come across money or find a job during the moratorium period, you can opt to start paying EMIs or make some prepayments, basis some pre-decided norms. You cannot expect to receive such flexibility and freedom with a personal loan, on the contrary, the moment you take the loan the tension of paying EMIs has already begun.
The next big reason is the tenure flexibility:
A personal loan has a maximum tenure of 5 years. Paying back a loan in such a short time, without the surety of a job and a steady source of income is like setting a financial trap for yourself. Student loan on the other hand can be taken for tenures of up to 15 years, this allows you the freedom to disregard the years you take to finish your course and still enough time to find a job and pay the loan back on your own.
Tax benefits:
An Students loan not only gives wings to your education dreams but also help you save on taxes as well! Under section 80E of the Income Tax Act, the interest paid against the loan is allowed as deductions on your taxable income. However, with personal loans you will receive no tax benefits at all!
These three reasons should be enough to steer away from a personal loan and towards an educational loan. After all it is the better option of the two and is more suitable to your educational needs. Speak to a financing institute today and see how an Students loan can help fulfill your dreams.
There are few options you can choose from when it comes to finding an option to finance these dreams. But among them all, two are very popular, the personal loan and the Students loan. People are often confused as to which one they should go for. Well, if you are one of these people then we have the answer; always go for educational loans. Wondering why? Read on, this article will give 5 reasons why an educational loan trumps a personal loan and why you should choose it!
First reason is moratorium period:
Moratorium period is the grace period given to applicants before paying their first EMI.Its maximum upto one year. It’s very thoughtful actually, as most students will take time to land a job and find a means to pay the loan, and till that time they don’t have to pay a single EMI. In case you come across money or find a job during the moratorium period, you can opt to start paying EMIs or make some prepayments, basis some pre-decided norms. You cannot expect to receive such flexibility and freedom with a personal loan, on the contrary, the moment you take the loan the tension of paying EMIs has already begun.
The next big reason is the tenure flexibility:
A personal loan has a maximum tenure of 5 years. Paying back a loan in such a short time, without the surety of a job and a steady source of income is like setting a financial trap for yourself. Student loan on the other hand can be taken for tenures of up to 15 years, this allows you the freedom to disregard the years you take to finish your course and still enough time to find a job and pay the loan back on your own.
Tax benefits:
An Students loan not only gives wings to your education dreams but also help you save on taxes as well! Under section 80E of the Income Tax Act, the interest paid against the loan is allowed as deductions on your taxable income. However, with personal loans you will receive no tax benefits at all!
These three reasons should be enough to steer away from a personal loan and towards an educational loan. After all it is the better option of the two and is more suitable to your educational needs. Speak to a financing institute today and see how an Students loan can help fulfill your dreams.
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