Difference Between Education Loan and Education Plan
Types of Instrument
- Child Education - Turns into an asset in the future
- Student Education Loan - Always stays a liability until repaid
Goal of Plan
- Child Education -Building a corpus to fund the child's education before the course begins
- Student Education Loan - To fund the child's education after the course begins
- Child Education - Must stay invested for a compulsory term. Premium paid depends on your health condition
- Student Education Loan - Collateral is required for Loans above 4 Lacs. Co-applicant might be required too.
- Child Education - Amount is invested in the chosen funds at regular frequencies. Profit is earned on the maturity of the plan.
- Student Education Loan - An interest is charged on the Loan amount. Repayment usually begins post Educational course completion
Provision for Insurance
- Child Education Plan - An insurance component is mandatorily included
- Student Education Loan - Insurance is mandatory only for Unsecured Loans
In event of Account Holder's Demise
- Child Education Plan - Depending on the policy's terms and conditions, beneficiaries get the policy sum assured or the fund value plus death benefit.
- Student Education Loan - The Loan will be repaid either by the co-applicant or the third-party guarantor.
- Child Education Plan - Premiums and Maturity value are exempt from tax under Section 80C & Section 10(10D) of the Indian Income Tax Act, 1961 respectively.
- Student Education Loan - Tax benefits are provided under section 80E of the Indian Income-Tax Act on the interest amount.
Get your child ready for their Education Today!
Visit https://www.hdfcsales.com/education-loan for more information
HDFC education loan
HDFC study abroad loan
HDFC education loan for abroad studies
HDFC education loan for abroad studies interest rate
HDFC education loan without collateral
HDFC education loan eligibility criteria
HDFC student loan for study abroad
Study loan for abroad
educational loan interest rate
education loan to study abroad
#educationloan #studyabroad #hdfcsales