Benefits of education loans for New Zealand 

Students who wish to pursue higher education in overseas countries like New Zealand can avail of the various education loans offered by leading nationalized banks like the State Bank of India; private banks like the ICICI and non-banking financing corporations. The education loans offered for New Zealand are of two types; secured loans and unsecured loans.

There are numerous benefits of education loans for New Zealand. They enable students to self-fund their higher education in New Zealand. Besides, there are other perks of applying for an education loans for New Zealand such as:

Cover a wide range of expenses

Education loans for New Zealand cover a wide range of students’ expenses including his tuition fees, hostel fees, laboratory fees, and travel and food expenses. It also helps cover the students’ entire stay in the country, and the cost of study materials and project works. This liberates the student’s parents from the burden of financing their child’s higher education. 

 Low Interest rates

Education loans for New Zealand are available with lower interest rates than other types of loans like the home loan, car loan, personal loan, etc. Set on April 1, every year, the interest rate for an education loan for New Zealand is currently 3 per cent. Also, the interest rates for female burrowers in government banks are 0.5 per lower than male burrowers.

Easy repayment terms

Education loans for New Zealand are available with easy terms of repayment. These loans have a longer moratorium period as their EMs start a year after students complete their study course This enables them to concentrate on their studies without worrying about their pending loans. Students can simply instruct their banks to deduct their EMIs from their account every month. They do not need to keep track of the EMIs

Income tax exemption under Section 80E

The Section 80E of the Income Tax of 1961 enables applicants seeking education loan for New Zealand exemption from Income Tax. Both applicants and co-applicants can demand a percentage of the interest paid on their education loans to be deducted from their total income. This prevents them from the hassles of paying EMIs every month. 

Prevention from liquidation of fixed assets

Education loans for New Zealand prevent students from liquidating their fixed assets like bank deposits, insurance, government bonds. Applicants can keep these assets with the banks as a security against the loans granted to them. This prevents them from keeping a high amount of liquid funds with themselves. 

Helps boost CIBIL score

Education loans help applicants boost their CIBIL score, their score in the Credit information report. This provides applicants with a positive credit history and helps them avail other loans such as car loans, home loans, etc at attractive interest rates and with easy repayment options. 

Education loans for New Zealand makes students value his education even more as it enables him to take his own financial responsibility. It can also prove to be an opportunity for parents to make their children independent and help them achieve their dreams