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Here’s How to Fund Your Own Education

5 MinsJune 09, 2019

As a student, you may have already received your exam results or waiting for it to be announced anytime soon. Weighing the pros and cons, you may have even unwaveringly identified the area or subject of specialisation you aspire to make a career in. And that’s great!

But have you given a thought on to how you will fund your own education, and be least dependent on parents or relatives to fund your career?

Well, besides the scholarships/grants and work-study jobs, here’s how you can fund your own education…

Education loan –– with it you do not need to haggle over fees, make compromises, or go asking for financial aid from relatives and family friends.

Education, as you may know, is a personal investment. And you can fuel your own dreams of pursuing higher education—whether in India and abroad––with an education loan.

Education Loan

An education loan is available for career-oriented courses like medicine, engineering, management, etc. either at a graduate or post-graduate level in prime institutes in India and abroad. And 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.

However, before you apply for an education loan, as a prudent loan planning exercise, assess how much the Equated Monthly Instalment (EMI) will be. Use Axis Bank’s education loan EMI calculator, an automated tool, that will quickly help you know the EMI.

The process of applying for an education loan with Axis Bank is quite hassle-free.

As a student, you can directly apply for an education loan. However, your parent(s) or guardian will be treated as co-applicant and his/her role will be akin to a primary debtor (a person who owes money). Remember, your co-applicant, i.e. parent(s) or guardian, needs to have a regular source of income.

Axis Bank usually disburses loans within 15 days from the date of receipt of the complete application along with all documents required for a full appraisal.

The loan can be disbursed in full or in suitable instalments after taking into account the requirement of funds and/or fee schedule assessed by the bank and as provided by the educational institution.

The education loan availed, also entitles you to a tax benefit, a deduction under Section 80E of the Income-tax Act, 1961.

The deduction is available for the interest paid on the education loan for a maximum of 8 years or till the interest is paid, whichever is earlier. In other words, 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. The advantage is there’s no limit on the maximum amount that is allowed as deduction.

Parents can also easily claim this deduction on the loan taken for their children’s higher studies.

Use Axis Bank’s Education Loan Tax Benefit calculator to help you ascertain: the total amount of interest you would pay on your education loan, the tax you would save under Section 80E, post-tax effective interest amount over the loan tenure, and the effective rate of interest on your education loan.

To sum-up…

An education loan is worth it for the returns you can reap in the long run. It is an efficient and reliable way to fund your own education (in India as well as abroad) and scale the zenith of success in your career and life.

Axis Bank also offers education loans to students from the Economically Weaker Sections (where the annual parental income from all sources of income is up to and inclusive of Rs 4.50 lakh) as per the Central Government Interest Subsidy Scheme.

Apply for an education loan from Axis Bank today! The loan can be worked out to suit your budget, facilitating you to save. Axis Bank offers education loan ranging from Rs 50,000 to Rs 75 lakh at an attractive rate of interest.

Wish you a bright and successful career and a financial future! “Education is the passport to the future, for tomorrow belongs to those who prepare for it today.” –Malcolm X

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.

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