Education loan 5 benefits

Planning your child’s higher education in India or abroad?

Education loans will get your child a step closer to their dream career, besides offering several other advantages that will ensure your child studies without worrying about money.

One: Financial benefits

Opting for an education loan reduces the strain on your family savings and eliminates the need to liquidate your investments in fixed deposits, mutual funds or bonds. Besides, the interest on an education loan is eligible for a tax rebate under Section 80 E of the Income Tax Act 1961.

Two: Pay after education

EMIs are payable only after students complete their study programme, so you don’t need to worry about repaying immediately. What’s more, you can use the repayment schedule as a guideline while planning your family’s finances in the medium and long-term.

Three: Wide range of expenses covered

Study abroad loans cover not just tuition, but also living and travel expenses, study material, a student laptop and much more. Hence these non-fee expenses won’t create an additional financial burden.

Four: Easy repayment terms

HDFC Bank offers reasonable interest rates on education loans, and preferential rates for top-ranked universities and institutes. We also offer flexible collateral and co-borrower terms so your loan repayment is a stress-free process.

Five: Build financial prudence

Taking on an education loan is a great opportunity for students to pay for their own education, without needing to depend on family. Besides, when your child repays a loan, they also start building their credit history. A good credit profile will help them get cheaper loans in the future.