Scale New Highs of Success in Your Career with an Education Loan

Time to read: 5 mins | January 9, 2019

Makar Sankranti is celebrated across India in different ways and holds cultural significance. Makar refers to Capricorn and Sankranti is transition. This day marks the Sun’s transition into the Makar (Capricorn), marking the end of the month with the winter solstice and the start of longer, warmer and brighter days ahead.

It is noteworthy that the Sun represents the spiritual light of knowledge and wisdom. And therefore, Makar Sankranti, in a way, also signifies turning away from darkness and delusions.

In India, Makar Sankranti is celebrated across states in their own indigenous manner welcoming the new season of harvest. Further, kite flying is traditionally observed as a part of this festival.

On this bright day, it’s a treat to see the sky with people flying colourful kites in a festive mood; it’s a tradition. The kite is primarily an icon of aspirations. We all aim to scale new highs in life and career, don’t we?

If you wish to scale high in life, make a bright and successful career, pursuing higher education is a must! As you may be aware there’s stiff competition in your career as well. To surmount that, continual learning is essential because we live in a ‘knowledge economy’ today, where education and knowledge is power!

To scale a new altitude, you ought to be focussed (much as when you fly a kite) and honing your skill-set––– specialisation and super-specialisation–––will help you get there, but it is getting dearer.

Nevertheless, with the availability of education loans, funding higher education shouldn’t be a worry. An Education loan from Axis Bank can fuel your dream of higher education in India or abroad. The education loan can be taken for career-oriented courses viz. medicine, engineering, management, and other technical education at graduate as well as post-graduate level in India and abroad.

The minimum loan one can avail is Rs 50,000 and can range up to Rs 75 lakh *, and is offered at an attractive rate of interest by Axis Bank. Besides the tuition and examination fees, the loan covers library subscription, cost of books, needed lab tools/equipment, laptop/computer, hostel charges (if any), and so on.

*subject to terms and conditions

Here are five benefits of availing an education loan:

• Your existing finances and investments are not exhausted and can be utilised for other important financial goals such as children’s marriage needs, your own retirement, among a host of others
• The loan can be worked out to suit your budget and requirements.
• The loan is usually disbursed within 15 working days.
• The interest rates on education loan are competitive.
• You are entitled to a tax benefit under Section 80E of the Income-Tax Act, 1961.

What is the tax benefit?

• The interest paid on the education loan is eligible as a deduction under Section 80E of the Income Tax Act, 1961. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.
• The deduction is available from the year you start paying the interest on the education loan, and the seven immediately succeeding financial years or until the interest is paid in full, whichever is earlier. Do note that there’s no limit on the interest amount that is allowed as deduction. With Axis Bank’s Tax Benefit Calculator you can check your tax savings.   
• The education loan can be taken for the higher education (irrespective whether in India or abroad) of self, spouse, your children, or the student for whom you are the legal guardian.
• Students can directly apply for an education loan. However, their parent(s) or guardian will be treated as co-applicants and their role will be akin to a primary debtor (a person who owes money).

Factors to look at when you apply for an education loan:

• List of eligible institutes – When you approach a bank for an education loan, first check whether the university/institute is accredited by a recognised body.
• Interest rate – Make sure you are availing a loan at a competitive rate of interest because it is an important component of your EMI. To get a broad sense of how much the EMI on an education loan will be, use Axis Bank’s education loan EMI calculator –– it’s a comprehensive resource. All you have to do is input the relevant data in the required fields and it’ll produce the result in less than a minute.
• Loan tenure – A higher tenure reduce your EMIs, making repayments comfortable; while opting for a lower tenure increases your EMI. So, sensibly choose your loan tenure. The maximum tenure of an education loan is usually 10-15 years (including moratorium period).
  
• Loan charges, if any – Axis Bank does not levy any pre-payment charges and foreclosure charges. This enables you to comfortably apply for an education loan and save money.
• Customer service – While lenders will have varying customer service standards, there are some basics of good service that are universal. Axis Bank follows high standards of customer service respecting every relationship.

Remember, education is a long-term personal investment that truly transforms and empowers you to scale new heights in your career and improve your lifestyle.

"An investment in knowledge pays the best interest." – Benjamin Franklin

Availing an education loan is worth it for the returns you can reap in the long run. So this Makar Sankranti, fly your kite of aspirations and consider an education loan. 

Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm. Axis Bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.