POSTED BY December 12, 2010 6:09 pm COMMENTS (3)ON
I need to take a loan of 20 lakhs for further studies. My dilemma is whether I should take a loan @ 12.50% for 7 years or pay out of my saving. My saving in MF and stocks give me a CAGR of 20-22%.
I would be easily able to pay the EMI from my salary and plus the added advantage of tax rebate. I have no other loans etc.
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3 replies on this article “Should I take a study loan?”
Educational loans are not as bad as personal or car loans though you have to provide certain guarantee.
Secondly returns from Stocks/MFs is higher than loan interest.
So go far edcuation loan.
I concur with Manish on taking edu loan being a good option in your case.
Usually its home and education loans (agriculture we wont talk, can of worms!) are lower bound interest rates. So its better to stick with them. As well you get some generous options on repayment of educational loans.
Bets wishes on your study plans.
I think it would be good idea to take Education loan .