Availing study loans for pursuing higher education has become a common scenario in our country. Lot of parents who belong to the middle class and lower middle class hierarchy of the society cannot afford to send their kids to prestigious colleges in the little savings that they possess. If you wish to avail an education loan for your child, you will have to begin with evaluating lenders who offer loans to students at low interest rates. This is a convenient way to compare the rate of interest and bank charges offered by various lenders. Compared to any other loan available in the market, a student loan has lower interest rates.
When an undergraduate avails a loan for graduation, he/she will have to repay it only after getting graduated. To simply put it, the repayment tenure of a student loan, begins after the student has completed the chosen course. You may even find lenders who offer an additional time period other than the duration of the course to repay the funds. This extra time given to the borrower is termed as a grace period or a holiday period. Borrowers can enjoy a minimum 6 months and maximum 12 months grace period on their loan. The borrower should try and clear all the debts as soon as possible after getting a relevant job. You can make use of the grace period to find a suitable job. Most of the higher study programs provide students with job placement so that they do not have to seek anywhere after getting out of college. The borrower can even begin paying during the course as per his/her convenience.
Education Loan have to be paid in EMIs which include the principle sum along with the rate of interest charged by the lender. There are various types of study loans available today. You can choose one as per your requirement after doing a thorough research. An education loan would not just cover the basic academic expenses, but other expenditures related to it as well. Cost of books, library fees, cost of laptop/computer, cost of stationery, etc. can be covered by the loan amount.You can consider government as well as private banks for availing an education loan. Make sure you apply for a loan in advance so that the money gets disbursed at the right time.Comparatively, loans availed for studying within the country are less costly than the ones availed for abroad studies. To get the loan sanctioned, you need to submit some important documents such as:
- Education loan filled appropriately and signed
- Last qualifying examination marksheets
- 2 passport size photographs
- Bank statement from the past 6 months
- Income proof
- Statement of collateral security to be produced
Depending upon lender to lender, there can be a slight variation here and there in the documentation requirement. The borrower has to be between 18 to 35 years of age to avail study loans. At the time of availing the loan, a co-applicant will also be required. The borrower’s siblings, spouse, parents/guardian are eligible to apply as co-applicants. Gather information from the available sources and only after evaluating all the factors choose the loan that you need.