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Is education loan interest rate eligible for tax benefits?

Asked on 20-12-2018 by Aaryan Pawar

Answered by NewsBytes

Yes, one can avail income tax benefits on the interest of the education loan taken for self, spouse, children, or someone for whom they are a legal guardian. The deduction can be claimed for up to 8 years. The principal amount is not eligible for tax benefits.

What will happen if the borrower can't repay education loan?

Asked on 20-12-2018 by Muhammad Pawar

Answered by NewsBytes

If a borrower defaults on repayment and is not able to repay education loan, it will hamper their future credit opportunities. It would also create problems for the guarantors, and the collateral offered will be at stake. To avoid trouble, borrowers should have a backup plan for repayment even if they don't get a job or fail to repay after the moratorium period.

What are the parameters to be compared for taking education loan?

Asked on 20-12-2018 by Ankita Patil

Answered by NewsBytes

One should conduct detailed research on education loans offered by various banks before choosing one. They must compare the interest rates, repayment tenures, processing fees, the scope of coverage (tuition fee, accommodation, books, etc.), and interest and repayment terms among other parameters.

How to check whether education loan is available for a course?

Asked on 20-12-2018 by Aaradhya Patil

Answered by NewsBytes

Candidates should check whether loan facility is available for the course they are interested in beforehand. Before deciding on a course or applying for admission, they can find out whether a loan is available by approaching the concerned college or the bank they want to take the loan from.

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