Education strengthens the future of an individual and makes him/her a better person. Without education, you cannot have a fair sense of right and wrong in life. However, the cost of education fees has gone so high that it cannot be afforded by a common man. If you too wish to pursue your higher studies, but are running short of financial assets than you can consider taking up an education loan. Availing loans for any purpose has become a lot more easier comparatively. A potential borrower can find many government and non-government banks if he does a bit of a research on the internet. Before opting for a loan, just ask yourself whether you really need to borrow a loan. Evaluate your regular savings and available collateral security before applying for a study loan. Collateral security is any asset that the borrower offers the lender to secure the loan. If your family has sufficient savings that can meet the needs of your educational expenses, then you should not avail a loan. Try your hands on as many scholarship programs as possible. Good academic records can help you gain additional benefits too apart from the low rate of interest.
The lending bodies also give a thorough consideration to the borrower’s (co-applicant in case of a student loan) monthly income, his/her monthly expenses and the place of his/her residence before approving the loan. A student who wishes to pursue studies in a foreign country will be entitled to a greater amount than the one who continues to study further within his/her own country. If the student himself has a steady source of monthly income, then it would be the only factor that will be considered by the lender while the time of sanctioning the loan. In case the student is completely dependant on his family for educational expenses, then the amount of loan that he/she would be eligible for will solely depend on the income of parents or guardians. Lenders also check the reputation of the chosen college/university and whether it will be able to add to the professional competence of the applicant. When opting for higher studies with an education loan, you should always try and pursue career oriented courses with high job placement so that upon completion of the course, you do not have to seek for a job here and there and can immediately begin paying your EMIs.
As far as the repayment is concerned, you can pay the debt after completing your course. Some lenders also offer an additional grace period to the borrower apart from the duration of the course. The grace period can last from 6 months to up to a year. The borrower can use this period to secure a relevant job, after which he/she can begin paying the debt in the form of equated monthly instalments (EMIs). Education loan is a wise option if you wish to study both in India as well as abroad. You can avail an education loan for both degree, as well as diploma courses in well known colleges/universities. The borrower should have a secure admission prior to applying for the loan.