As you know going abroad for higher education is not a piece of cake as you have to invest a huge amount of money with the uncertainties on returns on your investments. So the risk is always there that the student would get a job after the completion of the course or not. This risk will increase more if the student goes to study abroad with the help of a study loan.

After investing millions of rupees on your children’s education and still he /she remain unemployed will be a great loss to a family financially as well as mentally.  Many banks provide education loan to the needy family which helps them to pay the students tuition fees as well as the other expenses involved in pursuing a higher education course.

Education loan now-a-days become popular among Indian families as many students avail these facility in the anticipation of getting higher salary jobs in the end of the course to repay the loan easily. But every coin has its two faces, there are so many disadvantages of taking education loan which are not highlighted as much as advantages. So there are few advantages and disadvantages which one has to consider before applying for an education loan:

Advantages of Education Loan

with the help of education loan you can easily avail your preferable professional courses in graduation or post graduation which you wouldn’t able to do due to lack of finance available. It helps you to meet your expenses in abroad and you can pay back the loan after completion of the course when you get your financial freedom by getting a job.

As soon as you get the admission letter from the applied university you can apply for an education loan. The process of getting an education loan is very easy as compare to other loans either you can go to bank or you can apply on the web site of the bank and within 15-20 days you will get your loan. Bank may charge processing fees and collateral up to a loan of Rs 4 Lakhs or may not charge, it’s totally depending on the bank and on your negotiations skills.

The loan repayment will start after the completion of the student course. The borrowers need not to worry about paying the loan EMIs during the time of their studies and can easily focus on the course he/she opted for. Many banks shows considerable flexibility as far as loan repayment schedule is concern.

One of the best benefits regarding the education loan is the tax benefits one get after availing the loan. Education loan not only satisfy your financial needs but also helps you in saving income tax while repayment.

Disadvantages of Education Loan

The biggest disadvantage related to education loan is that the cost of getting higher education from abroad would be very expensive and if the placement of the college is not up to the expectations than it would become difficult for a fresher to pay off such a heavy amount of loan on time.

Most of the universities which provide education funds to their students rarely provide living expenses for a student which is very high. They also restrict their students not to do part time job during the time of their studies which creates more burden on student to take money from home.

Education loan for studying abroad must be a high amount of loan which is having a much longer loan tenure which a student needs to bear debts from such an early age with starting of his/her first job. So the student will become in pressure from the time of completion his course to repay his loan for a long period of time and would not able to enjoy his financial freedom. This burden will increase more if he/she would not able to get a good job.

It is very important for a family to opt for education loan after doing well research about the course and university where your child wants to plan for doing his/her higher studies as taking heavy amount of loan has its own advantages and disadvantages which you and your child need to bear in the end of the course.

Previous articlePradhan Mantri Awas Yojana 2017


Please enter your comment!
Please enter your name here