Tax Benefits of a Student Loan from Credila

An education loan can bring you a step closer to your dream university, both in India and overseas by taking away the burden around possible financial constraints. The benefits, however, don’t just end there. Besides easy financing of your higher studies, an education loan also lets you save substantially, with no upper cap* on the interest amount you can claim as tax exemption under Section 80E of the Income Tax Act, 1961.

It’s important to note that all lenders do not offer this benefit. Credila is the only non-banking financial company (NBFC) to offer this deduction, which makes an education loan a very viable option for both students and their parents.

Tax Benefits on Credila’s Education Loan

Here is some important information pertaining to the income tax deduction that you should be aware of:

• An individual can avail of the tax benefit if they have taken a student loan towards their own education, or that of their spouse, child or a student for whom they are the legal guardian.
• Education loans taken for a sibling or any other relative do not qualify for this tax relief.
• The tax benefit is applicable only on the interest paid towards a student loan and not on the principal.
• The amount you claim for exemption is deducted from your total taxable income for that particular financial year.
• The tax advantages are available against a student loan for a tenure of up to 8 years. Note that you can claim tax benefits only after the repayment starts

In conclusion

We’re sure that this tax deduction is reason enough to consider availing of an education loan

Moreover, while you choose the education loan specialist, Credila, to finance your higher studies in India or abroad, you can leverage a gamut of its unique features, which include up to 100% finance and flexible repayment options, in addition to a convenient and hassle-free application process.

*T&C apply