Education loans can help you achieve your dreams

Education loans today play a critical part in the existence of students who wish to seek higher education from the top best educational institutions in India and abroad. Education loans assist students with procuring quality education while at the same time freeing their parents from financial burden. Inferable from their numerous advantages, education loans have become a favored choice over self-finance. These advantages incorporate tax savings, up to 100% money, simple and flexible repayment terms etc.

Along with tuition fees, there are different costs that are related to higher education. These extra costs may incorporate everyday costs, library and examination charges, cost of books/uniform/hardware and travel charge and so forth. Henceforth, the total expense of education goes high with the tuition fee. Self-financing education may make you lose an enormous portion of your savings. Though, an education loan covers every one of these costs while you keep your savings intact for contingencies.

Here are 5 things to keep in mind while applying for an education loan

Find Various Plans and Analyze Them

Now that you realize the amount you need to get from the bank or a financial organization, you need to analyze distinctive education plans that are being offered by different banks to get the best deal. Pick plans that offer sponsorships. There are banks that offer extraordinary schemes and subsidies on interest rates for females.

Interest Rate and Repayment Tenure

Analyze all loan options and compare the rate of interest offered by various banks. Not just that, but also compare the time offered by banks for repayment, taking into account the specific course you have enrolled for. Most banks permit three years to reimburse a credit up to ₹ 4 lakh at a loan cost of 10-15%. Banks offer a lower interest rate and longer reimbursement period (generally 5-7 years) for higher sums of education loans. Banks may likewise request a guarantor, who might be the student’s parents or a guardian.

Understand the Grace Period

The grace period of an education loan is different across banks. When you are applying for an education loan from a specific bank, enquire about the grace period as well. Grace period is the time given to students after the finishing of the course before they make their first installment of repayment.

Have a reasonable understanding of the grace period and ensure that the course you intend to seek after will make you adequately skilled to get going with repayment of loan

Within the grace period. Banks additionally give you flexibility for additional suspension of loan. Beware of these grounds too as they will help you get away from the delayed installment charges and defaulting in payments.

Look for Special Schemes

Numerous banks, especially government-owned banks, offer special plans for the education of young girls. These plans can go from an interest rate or a subsidy program. It is essential to check with banks all such plans that could help you in reimbursing a loan.

Documentation

When you wish to get money from any bank they would check your identity and credit worthiness to make sure that they are loaning cash to somebody who will reimburse what he has acquired with interest. You need to clearly understand the documents that you would be requested and give the bank with each one of the supporting documents so that there is no deterrent when your loan gets disbursed.