5 Mistakes To Avoid When Applying For An Education Loan

1. 5 Mistakes To Avoid When Applying For An Education Loan

2. In the last few years, the popularity and accessibility of education loans have increased considerably. Students are now opting for this efficient way of financing their studies to complete their higher education plans. Lenders too have changed their approach towards lending money in order to appeal to a larger audience. The process to apply for an education loan has become quite easier as well. However, there are some common mistakes that a loan applicant is prone to making. In this article, we take a look at 5 such mistakes and how you can avoid them to ensure a smooth loan application process. 

3. Not checking the eligibility criteria set by the lender  Only when you are eligible for the loan will your loan application be verified and processed. If you do not read through the eligibility criteria of the lender, especially criteria that are specific to certain aspects of the loan before applying for the loan, then you run the risk of having wasted your time. Lenders may have criteria regarding age, the income of the co-applicants, academic performance, and so on. Do go through them before you apply for the education loan. 

4. Not using the education loan EMI calculator  The education loan EMI calculator is a beneficial and easy to use tool that can tell you the approximate EMI after you enter three variables: the principal loan amount, the interest rate, and the loan tenure. Knowing what your EMI will be approximately in the future will help you plan out your savings and make a repayment plan. This will help you get better clarity on the loan amount you should ideally take and the repayment tenure you should opt for.  

5. Not opting for helpful customer services  Many lenders are nowadays offering a wide variety of services that can help potential borrowers and applicants. However, a large number of students have hesitation in opting for these services because they think they may be heavily charged. These students may be relieved to know that while some services are indeed chargeable, the amount is quite nominal. Furthermore, reaching out to the lender and getting your doubts cleared will likely not incur any charges at all. 

6. Not double-checking the loan application form  The application form for your education loan should be filled with the correct information. If there is even a minor mistake, it may result in major issues later on. For instance, if there is a spelling mistake in the name or address and it does not align with the name or the address spelt on your identification documents, you may have to refill the loan application all over again. This might result in delays in your education loan process. So, it is highly advisable to double-check the loan application form. 

7. Delaying in applying for the education loan The admission process for any educational institute is a time-bound process. Therefore, it is imperative that you apply for the education loan at the right time during your admission process. If there is any delay in the application and the funding is postponed, then it could cause obstacles in the admission process.  So, the next time you are applying for an education loan, do remember to avoid these mistakes. Thank you for reading. 

8. We hope this article was helpful to you.

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