Financing your higher studies with educational loans

In today's time, it’s important we receive a quality education to achieve our dreams and succeed in life. In this competitive world, it’s important our children pursue quality education in reputed and premier academic institutions to get a good head-start for a well-paid job or entrepreneurship. However, these prestigious schools and colleges are quite expensive and it becomes almost impossible to fund your child's higher education with the little savings you have. The traditional fund is way too costly and borrowing from friends or family is a matter of pride. This has led to several parents seeking for education loan in India to finance the higher studies.

Today, leading private finance firms/banks have introduced study loans with customized solutions for millions of aspirants who wish to study in top-notch universities in India or abroad, however, struggle due to finances.

Most people who opine that personal loans are beneficial than the education loan usually get higher interest rates and end up paying more money. It can seriously break the bone of their future finances as well. Thus, education loans have a whole lot of advantages and conveniences and are specifically meant for education which enhances the lives of the students and serves to driver their career ahead.

These loans come with interest rates as low as 11-15% which is usually dependent on the lender's base rate. As per the RBI, the base lending rate for lenders in India is 9-10%. Private finance companies are willing to offer customized solutions especially for kids who wish to study abroad in the form of Pre-Visa Disbursement Loan, Pre-Admission Loan, Certificate of Availability of Funds, GRE score based loan, Bridge loan, fast-track loan etc. As per your requirements, you can avail the loan. Some firms are willing to give 100% education finance and children can make the repayment from abroad as well.

To avail education loans you have to fulfill some basic conditions such as:

• You must be a citizen of India and between the ages 18-35 to avail the education loan
• Loans less than Rs 4 lakh will not need a security or guarantor, however, for loans more than Rs 7.5 lakh one needs collateral
• You will require a co-borrower which could be one of the family members like parents, spouse/siblings
• When it comes to studying abroad, a student has to seek out part-time job or sponsorship for easy repayments of the loan
• While the student should have a good academic score, the co-borrower needs to have exceptionally well credit score

Comparison of interest rates, processing fee, country and its currency, university reputation, convenience, and reliability are some of the factors that need to be focused on before approaching any particular finance company for education loans. You can ask for a checklist from the loan provider to know about the eligibility criteria and most importantly the terms and conditions need to be given a thorough check before you sign on the dotted lines.

So, compare education loans online and give wings for a flying start to your career, now!

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