Important Things to Important Things to Note While Availing an EducaWhile Availing an Education Loan

Education is the most important thing in any person’s life. We perceive education to achieve things in life. Education serves as the ladder for shaping an individual’s successful life. The best education loan in India not only provides financial assistance but also guide the students properly. Proper counseling is done by the experts to pursue further education in India and abroad. Here we will talk about the educational loans offered by the banks and the financial institutions in India. We will discuss in detail about the important terms of the best education loan in India.

Moratorium period: Holiday period or moratorium period is a period in which the borrower starts paying EMI after one year of completion of the course or six months after he or she gets the job. Education Loan Interest Rates provides flexibility in the repayment options. A student should resort to a sedentary life to avoid problems of financial crunch.

Expenses to be considered while taking a loan : Best education loan in India not only cover the tuition fees but also living expenses, accommodation charges, books and periodical changes and traveling charges. Banks fund up to 100 % of the education loan so plan your expenses accordingly. While you opt for education abroad go for grants and scholarships provided by the government. You can also go for a part time job so it will help you cover a lot of expenses and will reduce the burden of the loan considerably.

Collateral and additional security for big amount loan: Collateral is required if the amount you applied for is greater than 7.5 lakh. The security can be in the form of house, land, building, public sector bonds, mutual funds, debentures, bank deposits or any other tangible security with suitable margin.

Know your loan thoroughly: Know the principal loan amount, the interest rate which the loan is availed, the tenure for the repayment of the loan and the mode of the repayment of the loan. Discuss with your family which type of repayment you are opting for. Also try to reduce the burden of the family by taking up a part time job.

Compare the loans: Always while taking up a loan for education purpose or home go to the website of the bank or the concerned lending institute and compare the loans. Best education loans in India have low interest rate and low EMI. See to it that the entire cost of the loan doesn’t burn your pocket. And you don’t pay more.

Will help you build a good CIBIL score: Education loan is taken at the start of your career so he or she is able to build up a good CIBIL score. In case if he wishes to take up a loan for business or work purpose there is no difficulty for him in the future while availing a loan as he a good credit rating. If the credit rating is not good there is difficulty while sanctioning the loan.

Education loans in India are provided by banks and the NBFCs across the nation at a lower interest rate of 12.65 % with a nominal processing charge of 1-2 % of the loan. Education loans have actually turned a lot of dreams into reality.

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