Many parents are
demotivated as soon as their ward points out towards the cost of a foreign
degree, the ward is focused on the future benefit and sees money as a trivial
obstacle and has numerous plans of working part-time as he already knows how it
works in a foreign land. But it’s the parents who are the most worried because
40-60lakh is not a small amount for a middle class family. And we at http://gkworks.in/ find so many such parents coming for a solution.
We would like you go through the article in the source and to reassure you, if
your savings ever fall short of what you need for your child’s college
education abroad, you can always take an education
loan to meet the gap. Education loans have tax benefits and are a better option
over dipping into your retirement savings.
Interest paid on an education loan can be claimed as a deduction under Section 80E with no upper limit. This helps reduce the effective cost of loan for you. The maximum benefit goes to those in the highest tax slab with the interest rate of 10% coming down to about 6.8%.
However, this benefit is available only for eight years beginning from the year in which deduction is first claimed. Also, gradually the benefit will decrease as the loan is paid off.
Most scheduled commercial banks offer loan of up to Rs 40 lakh for overseas education. The interest rates offered on loans for overseas studies range from 9.5-14%. The loan amount covers tuition fees, living expenses, travel expenses, expenses related to books, equipment, library and examination and insurance premium for the student. One key requirement for an overseas education loan is that it needs a co-applicant, which can be a parent, spouse or sibling. If the borrower goes abroad during the repayment period, the lender will recover the outstanding from the co-applicant. Don’t worry if it is still confusing just visit http://gkworks.in/about/branch-offices/ and we will happily guide you through the process, remember we are always there to help!
Interest paid on an education loan can be claimed as a deduction under Section 80E with no upper limit. This helps reduce the effective cost of loan for you. The maximum benefit goes to those in the highest tax slab with the interest rate of 10% coming down to about 6.8%.
However, this benefit is available only for eight years beginning from the year in which deduction is first claimed. Also, gradually the benefit will decrease as the loan is paid off.
Most scheduled commercial banks offer loan of up to Rs 40 lakh for overseas education. The interest rates offered on loans for overseas studies range from 9.5-14%. The loan amount covers tuition fees, living expenses, travel expenses, expenses related to books, equipment, library and examination and insurance premium for the student. One key requirement for an overseas education loan is that it needs a co-applicant, which can be a parent, spouse or sibling. If the borrower goes abroad during the repayment period, the lender will recover the outstanding from the co-applicant. Don’t worry if it is still confusing just visit http://gkworks.in/about/branch-offices/ and we will happily guide you through the process, remember we are always there to help!
1 comment:
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Overseas Study Loan
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