What if we told you that the rate of interest on an education loan might change post-sanction, would you be surprised? 8 out of 10 loan applicants would say an unequivocal yes. Few, if any, are aware of the complex formula that defines the interest rate of a student loan. Most Indian bank and NBFC loans come with a floating interest rate.
Should we opt for an loan insurance cover?
Can we avail tax benefits if the loan is taken from an NBFC?
A very limited number of NBFCs are covered within Section 80E. You can talk to a GyanDhan loan counselor to know if your chosen NBFC is eligible for the same or not.
It is generally advised to get a loan insurance cover. Mainly because it safeguards the family of the borrower from the burden of the education loan in case of a fatal eventuality. The co-applicant or the family won’t be liable to repay the loan in this case. The insurance will cover the amount. Though, I suggest you talk to GyanDhan’s loan counselor to discuss the merits and demerits of the insurance cover.