Importance of education loan

The education scenario has changed since past two decades radically.  More and more students are now aiming for higher education in home land as well as foreign country. Education has become one of the most important investments made by the parents and the students. Education loans have proven to be successful in providing financial aid to the students. Education loan India help students achieve their dreams. There are various education institutes in India that offer a variety of courses like art, literature, science, technology and engineering and so on. The cost of education has been rising constantly hence, it becomes impossible to finance the education entirely on the salary or the saving of the person. Borrowing from friends and family is against self-respect. Thought there are a lot of personal finances and traditional finances available the rate of interest charges by them is exorbitantly high.

Education loans or study loans particularly cover the cost of education, the materials that are required to complete the course and the related expenses. Education Loan India is given by various banking and non banking institutions at a lower interest rate of around 12.75 % with a mere processing fee of 1-2 % of the loan amount.  The study loans cover all the expenses like the course fee, library fee, the dorm charges, accommodation charges, traveling expenses up to some extent, and living expenses which is something similar to the pocket money.

Features of the best education loan India :

  • The rate of interest at which the loan is availed from the bank is one of the important thing you should consider while taking up the education loan. The rate of interest is determined by three factors 1) the amount of the loan 2) the tenure of the loan 3) the education institute you are applying in. Each bank or finance company has a different eligibility criteriawhile availing the loan and also the rate of interest.
  • Every bank/finance firm has a different criteria for repayment. Collateral security is required if the loan amount exceeds 7.5 lakhs. Third party guarantor is required if the loan amount is between 4 -7.5 lakh. However, the collateral security should be of the same value as the loan amount. Education loan in India is a boon for the students as there is flexibility in the repayment options of the loan. Which make the study loans affordable and easier for the students.
  • Carefully analyze the costs that are covered in the loan amount. The loan amount should not be too much so it is not a burden for the student. The loan amount should include all the related expenses that are required to complete the course.

Always compare these loans on online comparing website so that you don’t end up paying for a loan. Go for a loan which has lesser interest rate and offers flexibility in the repayment options of the study loan. Education loan India are therefore a key to a successful career ahead. The education loan has thus paved a way for a lot of students who aim for higher education.

 

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