Things to keep in mind before opting for an education loan in India

1. Things to keep in mind before opting for an education loan in India. The concept of education has changed drastically over the years. In the earlier times, people would gather and sit underneath a tree to learn; however, the same is not the case today. It is not just the education that has evolved but also the mode through which it is being taught i.e. at educational institutions. And the cost of obtaining an educational degree from premium institutions is way higher than the reach of a middle-class earning member of the society. Thus, at such times, parents often gamble on their future to sponsor their child’s education. However, now students can opt for an Education Loan in India and sponsor their own studies without exhausting their parent’s financial resources. There are numerous banks and NBFCs (non-banking financial companies) that offer these loans at way lower interest rates than those given out by traditional financiers and loan sharks. There are also a number of financial institutions that provide special discounts on interest rates for the meritorious students and women who wish to apply for an education loan in India.

2. There a lot of banks and NBFCs (non-banking financial institutions) that have started offering financial assistance; thus, it has become quite difficult to find out the best one for you. Therefore, we have compiled a list of few factors that you must check before opting for a study loan in India, and they are here as follows: • Eligibility criteria: Every financial institution has a different set of eligibility criteria that you need to fulfil to obtain a Study loan in India. These factors are generally your educational course, country of choice, educational background; co-borrowers credit score, history, and income source. Thus, ensure that you fit into the eligibility criteria before opting for a loan

3. Interest rates: This is the most important factor that you must consider before opting for financial assistance through a bank or NBFC. The reason being, interest rates are given out by the financial institutions on the basis of the principal borrowed amount and the repayment tenure opted by you; therefore, it has a major impact on the EMI (equated monthly instalment) that you pay. Thus, lower interest rates charged by the financial institutions will result in fewer amounts of EMIs. • Processing fees and other charges: This is yet another major factor that plays an important factor in deciding the extra amount of money that you will have to pay. The processing fees and other charges are given out by the financial institutions for sanctioning the loan amount. Thus, always look out for these charges before opting for an Education Loan in India.

4. Repayment tenure: The best thing about opting for an education loan is that you get the benefit of making flexible repayments to the banks and NBFCs (non-banking financial companies). Thus, you can easily plan and repay the borrowed amount without burning down a hole in your pocket. The financial institutions also provide you with a moratorium period. This is the added time given out by financial institutions for you to make repayments on the loan amount. This period starts when you borrow money and end when you make your first repayment once you get employed i.e. within six months to one year after the course completion. Thus, check and find the most feasible repayment tenure for yourself.

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