Why should you financing your education with study loan

No matter what you want to become or aspire for, choosing a career is bound to be the turning point in any individual’s life. Right education helps your career life to get immensely benefitted. No matter then, whether you buy a grand house, cars, gadgets, go out for lavish holidays, etc. it becomes highly possible if one has a great education option in India.

Of course, there are best of the universities and institutes in India that offer quality education for children. But the rising inflation and education costs have started ringing an alarming bell into the ears of parents. With the little savings, they have it has become difficult to bridge up the gap between high education costs and their child’s rising aspiration. The best way to finance your child’s higher studies would be taking education loan.

Taking education loans in India will provide you with a lot of benefits apart from financing your academic fees. These loans take care of your additional requirement which includes tuition fees, laboratory fees, books, travel expenses and refundable deposits. Through this way, you can push your savings to other educational costs which are not covered under the loan.

Education loans are granted to the student along with a suitable grantor for the loan. It eases out the document verification process. These loans are usually cheaper compared to traditional finances or personal loans. Various banks or private finance companies offer specialized help through their experts and an organized way to tackle the loan structure, interest rates, tenure to settle the loan and flexible repayment options. It is easy to obtain and is available widely as a product sold by most of the financial institutions.

Just like any other loan, education loan in India also has processing fees, administrative fees, documentation costs, etc. While government banks demand margin money of around 15-20% of the loan amount to approve study loan, some private finance firms give loan at no margin money costs. The interest rates offered are as low as 12.75% and the processing fee is mere 1-2% of the loan amount being calculated on a case-to-case basis. The loans are designed without setting any cap on finance and provide 100% coverage of education costs, making such young talents of India free from unnecessary burdens.

For repayment, you have a fair amount of tenure of around 5 to 10 years. The good part is you can start you loan repayment after the course completion. This time period will give you the flexibility to search for a decent job and build a steady financial base before beginning the repayment procedure. You can start repayment six months after you get a job or within a year till you find a suitable job. This period is termed as "moratorium period. Thus, you can work part time and save money to pay towards your loan EMIs.

Education loan in India is available to Indian students who fall between the age group 18 to 35 years. Factors such as academic score, recognition of the university applied for, gross income, credit worthiness of the loan seeker, course fees, and monthly expenditure are taken into consideration while sanctioning the loan. The loan gets disbursed directly to the university account so the student must have confirmed admission in the institute before the disbursement of the loan.

Source:http://checkthis.com/why-should-you-be-financing-your-education-with-study-loan

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