Few tips to consider while opting for education loan lender

Education is quite a distant and expensive dream for many aspirants. Whether it’s a graduate degree, masters, management studies or medical studies, the course fees have reached skyrocketing high in the last couple of years and it’s bound to rise in the forthcoming years as well. In such a situation, the best way to fund your higher studies would be availing finance. However, traditional ways or personal loans funding come at an exorbitant interest rate and they might seriously break the backbone of your existing finances. The best course of action would be taking an educational loan. Today, there are leading private finance companies and banks who offer study loans with low interest rates and flexible repayment options. However, since there are a lot of pioneer players who cater aspirants with customized loan solutions it's better to do a lot of advance research and considerations.

So, are few tips to consider before zero in on particular lender for education loan?

The Interest Rates

You can say that the interest rate is the crux of the education loan. The interest rates offered by lenders keep changing as per government regulations and RBI mandates. So, choosing the lender that offers low-interest rate would be ideal thing borrowers are going to watch out for. The interest rate makes a huge impact on the monthly repayments - It’s like higher the interest rate, higher would be repayment money. When repayment starts, the lender first starting collecting the interest followed by the principal amount, so if you pay a higher interest rate than you would end up repaying a lot of money for the loan amount.

The Loan Process

Most lenders charge a nominal processing fee towards your loan. The processing time is also important as some lenders might take a longer time to process and accept the loan request. Well, private lenders are always willing to help the borrowers and offer quick loan processing. If you have good negotiating skills you can talk to the lenders and ask them to waive off the processing fee as well.

The Lender service qualities:

Another important factor that needs to consider while applying for the loan is the lender reputation. Check the credibility of the lenders, the kind of services they offer, how easy and smooth are your loan process? Are they willing to offer excellent post loan disbursal service? Most lenders are verified financial institutions; however, to avoid the risk it’s better to have a thorough research into lender background.

The collateral you have:

Education loan for abroad higher studies, require collateral and a strong one is necessary for you to be eligible for the loan amount. The loan amount depends on the valuation of the collateral that you submit. The course fee is high and limited savings parents’ offer will obviously prove insufficient for funding the studies. Therefore, it’s important to note that if you offer a good amount of collaterals. This way you'll be able to avoid any discrepancies in getting the appropriate student loan amount for your educational course.

The Job Prospects

The job that you choose makes a huge impact on the repayment process. So, the course that you choose should ensure you get a well-paid job or be a successful entrepreneur and make your repayment comfortably. It would be great if your university/college provides campus recruitment or placement. Job security should be on the high priority before you plan for your higher studies, taking a loan and then finally repaying it back on time.

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