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Avail an education loan to further your career prospects

5 MinsJuly 22, 2019

We live in a knowledge economy. In addition to working hard, working smart is the key to climbing the corporate ladder of success. And you can work smart only when you sharpen your knowledge and skills.

Education plays a pivotal role: it empowers us to reach new heights in our career, enables us to live a respectable life, elevates our standard of living, aids us to accomplish financial goals, and much more!

education loan

With a good education, you can make your dreams come true. It’s a personal long-term investment that holds the potential to generate returns like no other. So, continue learning and educating yourself always. If you are a graduate, endeavour to be a post-graduate. If you are a post-graduate, strive for super specialisation; if you are already a super specialist aim for a doctorate …just don’t stop learning.

For support, reach out to your employer –– today employers are in search of the best talent. If you have proven your mettle, maybe, the organisation you work for would be willing to come forward and provide the needed financial support to fund your education, to an extent.

In some corporations, a higher educational degree may be a requisite for future promotions. If you are faced with such a situation and find yourself falling behind, enrol for the course and change the situation to your advantage.

Or you may feel the need to grow beyond your current role, but lack of knowledge may be proving to be a stumbling block. If so, upgrade your skills by enrolling for a course that covers the latest developments related to your role.

Financial support in the form of education loan

Good quality education, particularly higher education, has become dearer. Even if you have no financial support from your employer, don’t feel disheartened. Consider availing of an education loan from a bank. While you may have planned to an extent, the pace of wealth creation may not have kept up with inflation in education. And here’s when availing an education loan would come handy, prove to be a sensible option. Axis Bank offers education loans at attractive interest rates for a loan amount ranging from Rs 50,000 to Rs 75 lakh.

If you have been working for a while, it is possible that you have some funds saved up. But if it falls short, or if you have other financial obligations towards your family, then an education loan is a good option to bridge the gap.

An education loan is available for career-oriented courses either at a graduate or post-graduate level in prime institutes in India and abroad. The loan covers tuition fees, examination fees, library subscription, cost of books, needed lab tools/equipment, laptop/computer, hostel charges (if any), and so on.

Loans are also available for executive programmes for working professionals, offered by premier institutions and for deserving candidates.

Axis Bank offers education loans at attractive interest rates .But before you apply for an education loan, make use of Axis Bank’s Education Loan EMI calculator, which is an automated tool that will let you know your Equated Monthly Instalments (EMIs) payable.

Tax benefit

Under Section 80E of the Income-Tax Act, 1961, the interest paid on education is allowed as a deduction 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.

There is no maximum limit on the amount of deduction allowed under Section 80E. It would purely depend on the quantum of education loan and the interest paid (which is a component of your EMI). So, effectively, you save on taxes while you earn.

Use Axis Bank’s Education Loan Tax Benefit calculator to ascertain: the total amount of interest you would pay on your education loan, the tax you would save under Section 80E, the post-tax effective interest amount over the loan tenure, and the effective rate of interest on your education loan. Apply for an education loan today, climb up the corporate ladder and fuel your dreams!

Happy Learning!

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.