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1. Sometimes debt is good

"Never borrow!" These words were drummed into me since I was little. Debt was always a four-letter word with my folks.

But now I realise that at times, debt makes perfect sense. The key words: at times. Not always.

Off hand, I can think of two instances where borrowing makes sense.

If someone is strapped for cash and wants to pursue a professional degree or an MBA.

Education loans are available for higher education (full-time graduate or post graduate courses) in technology, engineering, architecture, medicine, management and applied or pure sciences, including mathematics and statistics.

You can get the loan from any financial institution, bank or approved charitable institution.

You can even claim a deduction under Section 80E of the Income Tax Act. This deduction is available up to eight years!

To understand the tax impact, read All about education loans

Ditto with a home loan. This one is a dire necessity.

And, you get tax benefits on the principal repayment and interest payment.

To get the complete low-down, read 5 questions home loan seekers ask

Text: Larissa Fernand
Illustrations: Uttam Ghosh

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