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Benefits:
One can avail income tax benefits on education loan. The tax benefits on education loan are only valid once you start the repayment and moreover they are only available up to eight years. For instance if your loan tenure exceeds eight years, you cannot claim for deductions beyond eight years.
Hence it is better that the education loan is repaid within eight years. one should not opt for education loan with longer tenure.
Tax Benefits on education loan can only be claimed if the loan has been taken in your own name. If your parents, spouse or sibling has taken the loan for your studies, then you are not entitled to get tax benefit.
The loan includes not only tuition or college fees but also other incidental expenses for pursuing such studies like hostel charges, transport charges etc.
Top Up Loans:
Banks may consider top up loans to students pursuing further studies within the overall eligibility limit, with appropriate re-schedulement, subject to taking required security.
» Banks may give loans for further studies to students already having a loan on the basis of
collateral security.
» Depending on the job prospective after the student will complete the course
» Depending on the past academic record of the student.