The 11th President of India, Dr. A. P. J. Abdul Kalam, was a renowned aerospace scientist and also a Bharat Ratna awardee. His legacy encourages the student community to contribute to society actively. Therefore, doctor A. P. J. Abdul Kalam’s birthday is annually observed on 15 October as World Students’ Day in his honour. So, let’s understand the role and benefits of an education loan on this special day.
Key Highlights:
- World Students’ Day and youth empowerment
- Benefits of education loans
- Dream university
- Why liquidate assets or savings
- Credit score
- Earn a self-made badge
- Don’t worry about multiple costs
- Financial wisdom
World Students’ Day and youth empowerment
Dr. Kalam strongly believed that empowering students such as you is crucial for building a brighter future as they will play a vital role in nation-building. Quality education is necessary for developing expertise in your chosen domain and building your creativity, critical thinking skills and analytical skills. Thus, higher education is essential in moulding the youth to empower them to take on leadership roles.
However, an education loan can dig a hole in your pockets as it is super expensive. Did you know education inflation has reached ~11-12%? Furthermore, it will only increase in the future. You will be glad to know that this doesn’t discourage the students as they rely on education loans to fund their academic journey independently. Student loans have a significant share in empowering the youth by bridging the gap between them and their educational ambitions.
Also Read: What students must know about education loan eligibility criteria
Benefits of education loans
Dream university
The pedigree of the university is crucial, as well-ranked and reputed educational institutions offer top-notch education, which will lay a foundation for your personal and professional development. Nevertheless, attending such universities comes with a high cost. If you have such a university on your mind but are reluctant to apply because of expensive tuition fees, an education loan can come to your rescue.
Why liquidate assets or savings
You can stay away from the stress of liquidating your assets or using your family savings. Also, parents usually save for retirement to live a comfortable life. If you use their life savings, it can be worrisome. Choosing student loans over family savings will preserve your financial stability during contingencies such as health emergencies or the pandemic.
Also Read: Do’s & Don’ts During A Visa Interview Process
Credit score
You are at that juncture in life where, eventually, you will need other financial products such as a home loan, car loan or credit card. When you repay your education loan responsibly, it will help you build a healthy credit score. Your creditworthiness will unlock several benefits when you apply for other financial solutions.
Earn a self-made badge
These days, students aspire to finance their higher studies without depending on their parents. Therefore, they turn to student loans. You can be Atmanirbhar by taking responsibility for repaying the education loan independently.
Don’t worry about multiple costs
Whether you want to study abroad or in India, there are several costs associated with higher education. However, student loans cover these expenses and take away the pressure of managing the multiple costs upfront, enabling you to focus on your studies instead of thinking of the cost.
At Avanse Financial Services, we offer student loans that cover the holistic cost of education, including tuition fees, accommodation costs, travelling expenses, cost of learning devices, living expenses, and other education loan-related expenses.
Financial wisdom
Repayment is a financial and moral responsibility and requires planning. Therefore, students must start planning their repayment when they opt for education loans. Most student loans come with a moratorium period, which is like a grace period where students are not obligated to make the payments. However, this is not an interest-free period, as interest begins to accrue from day one. Hence, it is advised to make contributions in the form of simple interest (SI)/partial interest (PI) during this grace period. This instils prudent financial habits from early on in life.
Also Read: Travel checklist of things to carry to the USA for students from India
Avanse student loan benefits
At Avanse Financial Services, we truly understand the significance of your academic aspirations. Therefore, we offer hyper-personalised education loans for a wide range of courses and several benefits. With an Avanse education loan, you can get 100% financing, quick loan sanctions, flexible repayment options and more.
So, now that you know the student loan and benefits, you can plan your academic journey by opting for an education loan. To learn more details on eligibility of education loan, the application & documentation process, please contact us. We will be glad to partner with you on your academic journey.
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