With the support and benefits of education loans, you can embark on your study-abroad journey and achieve your goals for academic and personal growth.
Education loans offer students the opportunity to pursue higher studies at renowned universities around the world without having to compromise on their dreams. Lakhs of students aspire to get into top universities but fail to do that due to financial constraints. With the support and benefits of education loans, you can embark on your study-abroad journey and achieve your goals for academic and personal growth.
Education loans do seem lucrative while giving you the opportunity to accomplish our dreams, it is also essential to consider a few things before applying for the loans.
Assess the funds
Before applying for the loan, determine how much funding you are going to need. Assess both your minor and major expenses. For instance, include costs like hostel fees, stationary, laptops and tuition fee.
Credit score
Pay attention to your credit score. A low credit score can pose a challenge for you in acquiring the loans. Banks offer different interest rates, so it is advisable to compare them and opt for a bank with a lower rate. Keep in mind that the interest rates are also determined based on the university of your choice and the course you have applied for.
Guarantors
A third-party guarantor is required when applying for loan more than Rs 4 lakh. For amounts exceeding Rs 7.5 lakh, collateral such as property, insurance policies, or bank deposits are required. Therefore, make sure to have a guarantor before applying for the education loan.
Moratorium period
Banks offer a moratorium period of one year for education loans. This is a period during which the borrowers are not required to repay the loan amount as EMIs. Repayment of the loan can be done over a period of 15 years, depending on various bank policies. Additionally, banks can extend the moratoriums period by one more year to lessen the burden on the student.
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