A few ways to determine the best education loan in India

1. A few ways to determine the best education loan in India Education is important for growth. The people of today’s times are pursuing educational studies with all their might. However, meritorious students aren’t able to fund their educational studies due to the high costs of education. But now they can make use of the various education loans given out by banks and NBFCs (non-banking financial companies). These loans are considered way better than the ones provided by the traditional financiers and loans sharks. The reason why this happens is that the interest rates provided by financial institutions are lower than those provided by traditional financiers. There are a lot of financial institutions which provide study loans and thus, it is quite difficult to gauge the one which provides the best education loan in India. The banks and NBFCs (non-banking financial companies) also give out a number of discounts on interest rates for meritorious students and women- to empower them to study further. An education loan takes care of all the costs that you incur while pursuing higher education. The various costs covered by an education loan range from the cost of college fees, study material, tuition fees, living expenses, travel expenses, etc. Even the other miscellaneous costs incurred by students are included under the education loans. However, choosing the financial institution which provides the best education loan in India is quite an arduous task. But by following these few tips you can choose the one which will be best for you: Choice of course: The financial institutions of recent times provide a number of courses for us to choose from. The different types of courses are in the fields of science, commerce, arts, medicine, engineering, architecture, mass media, journalism, etc. Thus, choose the financial institutions which will cover the course that you want to pursue. Interest rates: The financial institutions provide principal loan amount and charge you with interest rates. You pay back this loan amount along with the interest rates over a set of time period. The repayment of an education loan amount is done in the flexible form of installments. Choose the financial institution which provides the lowest interest rates for you. The financial institution that provides you with the lowest interest rates will give you the best education loan in India. Collateral required: Just like any other form of a secured loan, an education loan too requires collateral. This collateral is calculated on the basis of the primary debtor’s credit history and the principal amount borrowed by you. This collateral can be any of your residential properties, non-agricultural land, life insurance policy, fixed deposit, etc. Thus, choose the financial institution which accommodates the amount of collateral you want to shell out.

2. Margin amount: When you opt for an education loan, the financial institutions most of the times don’t fund you completely. There is a certain amount of money that you have to shell out from your end. This amount is known as a margin amount. The financial institution that asks the margin amount of your choice is the one which provides the best education loan in India for you.