Tata Capital Blog
  • Aspiration
    • Home Loan
    • Business Loan
    • Education Loan
    • Vehicle Loan
  • Lifestyle
    • Personal Loan
    • Travel Loan
    • Wedding Loan
    • Consumer Durable Loan
    • Home Renovation Loan
  • Protection
    • Medical Loan
    • Insurance
  • Finance Essentials
    • Loan Against Property
    • Loan Against Securities
    • Wealth Management
    • Trends
    • Government Regulations
  • Moneyfy
    • Investments
  • Business
    • Equipment Financing
    • Equipment Leasing
    • Working Capital Loans
    • Term Loans
    • Construction Finance
  • COVID-19
    • CORONAVIRUS
    • GOVERNMENT UPDATES
    • WORK FROM HOME
    • LOCKDOWN SOLUTIONS
    • FINANCE SOLUTIONS

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • July 2017
  • June 2017
  • March 2017
  • January 2017
  • November 2016

Newsletter

Enter your First Name and Email Address below to subscribe to our newsletter

Categories

  • Business Loan
  • Construction Finance
  • Consumer Durable Loan
  • CORONAVIRUS
  • Education Loan
  • Equipment Financing
  • Equipment Leasing
  • FINANCE SOLUTIONS
  • Government Regulations
  • GOVERNMENT UPDATES
  • Home Loan
  • Home Renovation Loan
  • Insurance
  • Investments
  • Loan Against Property
  • Loan Against Securities
  • LOCKDOWN SOLUTIONS
  • Medical Loan
  • Personal Loan
  • Term Loans
  • Travel Loan
  • Trends
  • Vehicle Loan
  • Wealth Management
  • Wedding Loan
  • WORK FROM HOME
  • Working Capital Loans

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
Tata Capital Blog
  • Aspiration
    • Home Loan
    • Business Loan
    • Education Loan
    • Vehicle Loan
  • Lifestyle
    • Personal Loan
    • Travel Loan
    • Wedding Loan
    • Consumer Durable Loan
    • Home Renovation Loan
  • Protection
    • Medical Loan
    • Insurance
  • Finance Essentials
    • Loan Against Property
    • Loan Against Securities
    • Wealth Management
    • Trends
    • Government Regulations
  • Moneyfy
    • Investments
  • Business
    • Equipment Financing
    • Equipment Leasing
    • Working Capital Loans
    • Term Loans
    • Construction Finance
  • COVID-19
    • CORONAVIRUS
    • GOVERNMENT UPDATES
    • WORK FROM HOME
    • LOCKDOWN SOLUTIONS
    • FINANCE SOLUTIONS

Claim Tax Benefits on an Education Loan

by tatacapitalblogMay 9, 2019 in Education Loan,
claim-tax-benefits-on-an-education-loan

With sky-rocketing costs of higher education, it is of late becoming imperative to take an education loan. If you do not arm yourself with a student loan, you will have to do away with your dreams as you will not be able to fund your higher studies. Not just for studies abroad, even if you want to do a good course in a premier institute inside the country, costs are such that you cannot manage it without taking an education loan.

Know More

However, there is nothing to worry with the mere mention of the word loan. Financial institutions such as Tata Capital, these days, offer education loan on very easy terms and rates so repayment of the loan is no big deal. Also, the cap on education loan is very high in institutions such as Tata Capital. While they give a minimum of Rs 75,000 as a student loan, the upper limit is Rs 25 lakh, which is a lot for any leading educational institute.

Education loan is like a personal loan for education so the interest rate is at par with personal loans. For instance, Tata Capital offers education loans at 11.25 per cent, and you can pay off this student loan over as long as six years. The approval for this education loan is quick and fast, and the documentation is minimal.

The best part of an education loan, however, is the tax benefits that you get once you avail this student loan.

According to Section 80E of the Income Tax Act, 1961, the interest paid on the education loan can be claimed as a deduction. Let’s look at a few aspects of this deduction:

  • You must know that under Section 80E of the Income-tax Act, benefit on education loan can only be claimed on the interesting part of the loan. The principal part does not qualify for any tax benefit. So, if you have taken lumpsum money as a student loan, you will not get the benefit on that entire amount, but the interest that you are paying on that lump sum amount.
  • For calculating your taxable income for a particular year, the total interest part of the education loans repaid during that year can be deducted. There is no upper limit for this. You can claim as much deduction as you want to, depending upon the interests that you have paid on your education loans.
  • The income tax deduction on education loan is available for up to eight years or until the payment of interest in full, whichever comes is earlier. For instance, if you repay the loan within five years, you can claim a deduction only till five years. And, if your repayment period, for instance, is nine years, even then, you will only get tax benefits for eight years.
  • The income tax deduction available on education loan is allowed only if you have taken the education loan from a bank or any notified financial institution. Therefore, if you want to avail tax benefits on education loan, first and foremost find out if a financial institution falls in that category. Tata Capital, for instance, is approved under this scheme, so if you avail a personal loan for education from Tata Capital, you will be able to enjoy all the tax benefits under Section 80E.
  • Under Section 80E, the interest on the education loan taken for higher education for one’s own self or spouse or children or the student for whom the person is a legal guardian is allowed for deduction. However, do remember that education loan taken for siblings or other relatives do not qualify for Section 80E benefit.

Now that you know about the tax benefits of education loan, and how should you be able to avail it, do not worry. Set sail to give wings to your dreams by taking an education loan.

Apply Now
Share on FacebookShare on Twitter
Previous

Choosing Right Finance Company for Home Loans

May 8, 2019
Next

Business Ideas for Entrepreneurial Women

May 9, 2019

Related posts

Education Loan Eligibility Criteria

Top Factors Affecting Education Loan Eligibility Criteria

by tatacapitalblogMay 15, 2020no comment
Education Loan in US

How to get Education Loan for Higher Studies in USA explained

by tatacapitalblogMay 15, 2020no comment
Education Loan for Study in New Zealand

A Complete Guide for Getting an Education Loan to Study in New Zealand

by tatacapitalblogApril 7, 2020no comment
financing-option

Why an Education Loan should be your preferred financing option for a Masters course in the USA

by tatacapitalblogAugust 20, 2019

Newsletter

Enter your First Name and Email Address below to subscribe to our newsletter

Recent Posts

  • Why should an investor do a periodic portfolio review?
  • What wins in the long term: Diversification or Concentration?
  • Understanding the Credit Quality of Debt Funds
  • Short Term Liquidity: Where does one invest for the same?
  • Direct Equity vs. Equity Mutual Funds: Which should be preferred?

Most Popular

  • Coronavirus: Facts vs Myths

    Coronavirus: Facts vs Myths

    March 12, 2020
  • What are the Steps Taken by the Government to Fight Coronavirus in India?

    What are the Steps Taken by the Government to Fight Coronavirus in India?

    April 3, 2020
  • How To Check If you Have Coronavirus?

    How To Check If you Have Coronavirus?

    March 13, 2020
  • Top Ten Best Bikes for Your Daily Use

    Top Ten Best Bikes for Your Daily Use

    December 18, 2019
  • Top 5 Mileage Bikes of Honda

    Top 5 Mileage Bikes of Honda

    October 17, 2019

© 2017 Rever Magazine Theme. All rights reserved.