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A lot of research should be done before getting an education loan. You should be well-versed with the various education loan details so that you can compare the different prices and offers that are in your hand. This will help you in selecting the best option available instead of going for the first deal you see and losing out on a better option.
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Finance can be a major setback for students who are trying to get into a university of their choice for further education. Education Loans act as a savior in these situations for such students as these loans function as a bridge between the students and their dreams. However, students can sometimes fall into a raw deal if they are not aware of certain education loan details while applying for such loans. Do not fret, we have provided you with a list of some education loan details to go through to prepare you before going for an education loan.
Your options A lot of research should be done before getting an education loan. You should be well-versed with the various education loan details so that you can compare the different prices and offers that are in your hand. This will help you in selecting the best option available instead of going for the first deal you see and losing out on a better option.
Credit score There is always a better opportunity of getting a loan if your credit score is well maintained. The person under whose name the loan will be, most likely the parent or the guardian of the student, should always have a credit score above 750. This is one of the most important education loan details that one should keep in mind.
Repayment In some cases, loan plans give students a one-year gap known as the grace period before the payment starts getting applied. The benefit of this period is that while students have the time to gather the funds for one year before they start paying, their parents or guardians have the option to start the EMI.
Tenures Tenure is another one of those important education loan details. You need to figure out the tenure that is suitable for you. Longer tenures translate into small, more affordable EMIs but they also mean high-interest amounts. If you want to pay less interest, you will have to go for shorter tenures, but beware, shorted tenures mean higher EMIs!
Processing fees Every education loan comes with a processing fee. However, this fee will change depending on your lender. Some lenders have a fixed amount for the processing fee while others charge a percentage of the loan amount. Some lenders will also offer to drop the processing fee if the borrower’s profile is good (students with good academic history).
Interest rates One of the most important education loan details you should keep in mind is the interest rate. Every education will have different interest rates and you need to compare carefully. Another thing to keep in mind is that looking for the lowest rate is not the best strategy. It may lead you to a loan that has numerous downsides and that will cause you a lot of trouble later on. You should first find a few loans that best suit your needs and then see which one of them has the lowest rates. We hope you keep these education loan details in mind and that they help you with a smooth borrowing experience. Good luck and all the best with your studies. Related Blog:- An Informative Guide on Education Loans for Students
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