Things To Keep In Mind While Taking Study Loan

The education sector is on a boom with many top-notch universities/institutes in India and abroad imparting quality education in various sectors to students. However, along with this the cost of education is also touching sky high. Most of the people who dream to pursue their education from reputed universities often fail to outpace the inflation. It can be a major setback for their career. Thanks to the educational loan that has come as a savior. Education loan will pave the way towards your educational dream.

These loans have proved to be a blessing in disguise for millions of aspirants across India to finance their dream studies. A student loan will cover expenses such as tuition fees, exam fees, lab and library fees, caution deposit, travel, books and equipment, projects and study tours.

Let’s understand some necessary things to keep in mind before applying for any study loan:

Rate of Interest

In order to apply for the loan it’s necessary to take admission in a university which is reputed and offers best studies whether in India or abroad. Hence, score well, find a good college and negotiate with the lenders for low-interest rate deals. Also, check if they actually give the placements which they promise during the promotion.

Loan Eligibility

The Eligibility criterion for availing education loans is to be an Indian citizen. Other than this it’s your age, academic score, parents/guardian credit score, course type, the country you wish to study, and collaterals. Based on these factors lenders will sanction a particular loan amount to the candidate for higher studies.

Terms & Condition

Each financial firm or bank will have a different set of norms and conditions which may not be verbally conveyed but always available in written documents. Go through the clauses understand the loan as much as you can.

Compare

In your quest to get money, don’t just take the loan from the very first lender. Instead its better to compare the loan of leading lenders private finance firms or banks and then zero in on a particular one. Compare product in terms of interest rate, processing fee, collaterals, loan disbursal amount, etc.

Margin Money

While most banks demand a margin money cost of around 15-20% of the loan amount some leading private finance companies are willing to give 100% education finance. They understand the hurdle parents have to face while arranging such a huge amount of money for higher studies especially abroad and therefore, they are willing to give full financial aid to the deserving candidates. In fact with proper documentation in place, your loan gets approved within a day or two. A representative will come to your doorstep to explain you each and every aspect of the education loan. And you can make repayment from abroad as well.

Education loan is like a ladder for a successful career ahead. A good career will not only ensure you the financial stability but also help you discover the path for better living standards. Before you head for taking a study loan, don't forget to check these factors.

An personal loan would be the first financial help for your family in your absence.