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Aaryan Pawar

Aaryan Pawar

Asked on 20 December, 2018

Is education loan interest rate eligible for tax benefits?

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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.

Muhammad Pawar

Muhammad Pawar

Asked on 20 December, 2018

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

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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.

Ankita Patil

Ankita Patil

Asked on 20 December, 2018

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

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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.

Aaradhya Patil

Aaradhya Patil

Asked on 20 December, 2018

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

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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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