Pursuing higher studies in today’s era is extremely expensive especially for those who wish to study abroad. There are a number of prestigious universities & institutes in India or abroad where students can opt for quality education. However, the fees charged are sky high. Opting for traditional finance seems a costly affair with extremely high-interest rate and stringent payment measures. Education loans would be ideal solutions for students to finance their higher studies in an efficient manner. These loans come at a fairly low rate of interest, flexible repayment options and good tenure for repayment.
Here are some tips to consider while choosing your education loan:
The most important thing a student should do is plan your finances right from loan amount to tenure and flexible ways to repay it. One of the biggest advantages of study loan is that it allows the individual to repay the loan once they get a job after finishing their studies. So, technically there is ample of time in hand where students can work part-time to raise funds for loan repayments. When a student is applying for study loan they should try to focus on saving money and live a sedentary lifestyle to accumulate money towards loan repayment.
Ideally an Best Education Loan In India amount would be covering expenses for 100% Admission fees/ annual fees for the Colleges and Institutions, Examination fee, Library fee and Laboratory fee, Hostel or mess charges, Charges for acquiring equipment, books and instruments, Purchase of laptops or personal computers (if required), Caution deposit, refundable deposit, building fund after procuring original receipts and any other expenses those are required for completing the program like educational tours, projects, and thesis.
Some aspects that will not be covered by the loan would be GMAT fee, Business School application fees, (Incase of foreign studies) Visa fee, airline tickets, commuting tickets, living expenses and so on. However, there are some finance firms who provide students with travel expense or passage money up to Rs 75000 for ones traveling abroad.
While government banks demand margin money of around 15-20% of the loan amount to approve study loan, some private finance firms give student loan at no margin money costs. The interest rates offered are as low as 12.75% and the processing fee is mere 1-2% of the loan amount being calculated on a case-to-case basis. They design study loans without setting any cap on finance and provide 100% coverage of education costs, making such young talents of India free from unnecessary burdens and leaving them freely pursue their higher education and thereby carve the path of their successes in life.
The repayment tenure for most of the banks or leading finance firms is 10 years for the amount up to Rs. 7.5 Lacs and 15 years for more than Rs. 7.5 Lacs. The repayment is (for all) done by Equated monthly Installments starting one year after completion of course or 6 months after procurement of the job.
Taking an education loan can be extremely beneficial for the student. Not only does it help them afford their higher studies but also helps them slowly shape up their career goals. One must compare loans from different banks & finance companies to ensure they get the best deals for higher studies.