Dreaming of studying abroad but worried about the high costs of education loans for abroad studies? You’re not alone! The expenses of tuition, accommodation, and daily living can add up quickly. Fortunately, education loans make it possible for international students to achieve their academic goals without financial stress.
However, navigating the loan application process, understanding eligibility criteria, and choosing the best repayment plan can be overwhelming. This is where expert guidance makes all the difference.
With Unipay’s trusted guidance, securing the right education loan becomes effortless and hassle-free.
In this blog, we’ll explore the top 10 benefits of education loans for abroad studies, helping you understand their importance to finance your global education.
Why Take Education Loans For Abroad Studies?
Studying abroad isn’t just about getting a degree; it’s about gaining global exposure, better career opportunities, and access to world-class education. However, the cost of tuition, accommodation, and other expenses can be overwhelming. This is where education loans for abroad studies come in, offering financial support that covers every aspect of studying in a foreign country.
Unlike personal loans, education loans are specifically designed to meet student needs with lower interest rates, flexible repayment options, and added benefits like tax deductions and government subsidies.
How Education Loans for Abroad Studies Ensure Stress-Free Learning?
Many students and parents hesitate to opt for study abroad loans, fearing long-term financial commitments. However, modern education loan benefits ensure that students can study first and repay later. This makes the financial burden much easier to manage.
Top 10 Benefits Of Taking Education Loans for Abroad Studies
1. Access to Premier Educational Institutions
One of the biggest advantages of education loans is that they open doors to top global universities. Many prestigious institutions have high tuition fees that can be difficult to manage without financial assistance. With an education loan, students can enrol in their dream universities without worrying about immediate expenses, allowing them to access the best education opportunities available.
2. Comprehensive Coverage of Expenses
Unlike traditional loans, student loans for studying abroad don’t just cover tuition fees. They offer comprehensive financial support, including:
- Tuition Fees: The cost of attending university.
- Accommodation: Rent for on-campus or off-campus housing.
- Living Expenses: Daily costs like food, transport, and healthcare.
- Travel Costs: Airfare to and from the study destination.
- Study Materials: Books, laptops, and other essential equipment.
This all-in-one financial solution ensures students can focus entirely on their studies rather than worry about money.
3. Flexible Repayment Terms
One of the best features of education loans is the moratorium period. This means students don’t have to start repaying the loan immediately. Most lenders offer a grace period that includes:
- The duration of the course.
- A few months after graduation, allowing students to find a job first.
This flexibility reduces financial pressure and helps students transition into their professional lives smoothly.
4. Tax Benefits for Education Loan Borrowers
In many countries, including India, students who take education loans enjoy tax benefits. Under Section 80E of the Indian Income Tax Act, borrowers can claim a tax deduction on the interest paid.
This means that when students (or their parents) start repaying the loan, they can enjoy reduced tax liability, providing extra financial relief.
5. Lower Interest Rates Compared to Other Loans
Unlike personal loans or credit card debt, education loans for abroad studies come with much lower interest rates. Banks and financial institutions offer student-friendly repayment plans, making it easier to clear the debt over time.
A lower interest rate means students spend less on interest over the loan tenure, making abroad education loans an affordable financing option.
6. Government Interest Subsidies
For students from economically weaker backgrounds, many governments provide interest subsidies on education loans.
These subsidies significantly reduce the financial burden, ensuring that more students have access to quality education without excessive costs. If you qualify for these subsidies, the government may cover part of the interest amount, making repayment easier in the long run.
7. No Need to Sell Family Assets
In the past, many families sold property, gold, or other valuable assets to fund their child’s education. Thanks to education loans, this is no longer necessary.
For smaller loan amounts, banks often do not require collateral, meaning families can preserve their wealth while still ensuring their child gets a world-class education.
8. Helps in Building a Strong Credit Score
Timely repayment of student loans helps students build a solid credit history, which is beneficial for future financial needs. A strong credit score is essential for obtaining:
- Home loans.
- Car loans.
- Business loans.
By responsibly managing their education loan, students develop good financial habits that benefit them in the future.
9. Reduced Tax Collected at Source (TCS) on Foreign Remittances
For students funding their education through an education loan, the Tax Collected at Source (TCS) on foreign remittances is lower compared to self-funded expenses.
For instance, in India, if the remittance amount is below INR 7 lakh, the TCS rate drops significantly when sending money abroad using an education loan. This reduces upfront costs and saves students and parents a good amount of money.
10. Financial Independence for Students and Parents
Perhaps the most important benefit of an education loan is that it encourages financial independence. Instead of relying on parents to bear the financial burden, students take responsibility for their education costs.
Once students start working, they repay the loan themselves, ensuring that their parents’ savings and retirement funds remain intact. This creates a sense of ownership and responsibility while also easing financial stress for the family.
Final Thoughts: Why Education Loans Are a Smart Choice
Pursuing higher education abroad is a once-in-a-lifetime opportunity, but financial challenges should never stand in the way. Education loans for abroad studies provide a structured and affordable way to finance international education, offering numerous benefits that make repayment easier and stress-free.
With features like comprehensive coverage, flexible repayment options, tax deductions, and lower interest rates, an education loan is the smartest financing option for students aiming to study overseas.
Need expert guidance on securing the best education loan in Panchkula? Unipay is here to help! With seamless loan processing, expert advice, and tailored solutions, Unipay ensures your study abroad dreams become a reality, without unnecessary financial stress.
So, why wait? Contact us and take the first step towards your future today!
