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5 Important Factors To Check When Funding Your Overseas Education

· education loan

Overseas education can be one of the highest investments that you need to make. Opting for an education loan for abroad studies can provide the required funding in such cases.

These loans are available with attractive features and benefits. Certain financial institutions make availing and repaying such loans easier with attractive features and benefits.

Some of the factors you need to check before availing these loans:

  1. Loan Amount You Can Avail 

The loan amount you can avail depends on various factors, credit score is one of them. A CIBIL score of 750 or more can help you secure a high amount.

Availing a high amount with a personal loan for higher education can help you pay not only for tuition fees but also for accommodation, food, and other expenses.

  1. Repayment Tenor

Personal loans have a maximum repayment tenor of 60 months. Opting for a longer tenor can keep your EMIs low. Contrarily, a shorter tenor can reduce your cost of the loan.

Use a online personal loan calculator to calculate your monthly installments and determine the tenor you want to opt for.

  1. Approval and Disbursal Time 

Quick approval and disbursal time remove the hassles of applying for a loan. Opt for NBFCs that can approve your loan within 5 minutes and disburse the amount within 24 hours.

  1. Charges 

Processing fees, secure charges, foreclosure fees, part-prepayment fees are some of the charges you need to check before applying.

  1. Income Tax Benefits 

You can claim income tax benefits if you use a personal loan for education purposes. These loans enable you to claim deductions on the interesting part under Section 80E. There is no upper limit for the exemptions, but you can only file your claims for 8 years.

Make sure to check the factors mentioned above before you avail an education loan for abroad studies. Repay the loan in due time to improve your CIBIL score.

 

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