Things You Must Check Before Applying For An Education Loan
With the boom in the education sector, the cost of education is touching the skies. Most of the people dream to get a quality education but fail to outpace inflation. This is where educational loan comes as a saviour. Education loan could pave the way towards your dream career. It caters not only to your tuition fees but also helps in managing miscellaneous expenses such as food, accommodation, and stationery.
Let us know about few necessary things which you must keep in mind before applying for any type of education loans:
- ROI Of The College
In order to apply for the loan, it is necessary to take admission in a university which has a good recognition in your country as well as abroad. Hence before you start finding a college in India, inquire about its overall reputation. Also, don’t forget to verify whether they actually provide the salary which they project during the promotion.
- Loan Eligibility
The foremost eligibility criteria for availing the education loan is to be the citizen of India. If you are already doing a job, it would be easier for you to get the loan. However, if you are dependent on your parents for your educational needs,they need to be the co-applicant while applying for the loan. Banks also ask for collateral from the guardian if their income is not sufficient. If the borrowed amount exceeds Rs 7.5 lakh, they ask for the joint borrowers as well as some security collateral which has an equivalent value.
- Interest Rates
If you are a scholar or a female student, you might avail concessions on the interest rates. This gives an additional advantage to you over other applicants. Interest rates concession is also given to the students who are applying to the premier universities. Apart from this, you might compare the interest rates offered by the different financial companies as well as the banks for choosing the best option for yourself.
- Amount That Can Be Borrowed
This is the most crucial point that you need to consider before applying for an educational loan. If you want to take the loan for higher education in India, most of the financial institutions lend the amount of Rs 10 lakhs. However, if it is an educational loan for studies in abroad, the maximum loan amount could be Rs. 20 lakh. Apart from this, you can look for the benefits which you can avail from the scholarships, tax benefits, and other channels.
- Choice Of The Lender
Many financial companies and banks offer the educational loans for the higher studies in abroad as well as in India. If you are taking a loan for an expensive course, you need to keep security as your foremost priority. You must opt for a financial institution that provides you with the best interest rates and terms for the repayment. Also, don’t forget to verify whether they accept the EMI in advance or not.
- Terms & Conditions of the Lender
Whether you are taking a loan for the vocational courses or for any other short, you must not proceed without reading each terms & conditions of the lender. Each financial institution carries a different set of norms and conditions which may not be conveyed verbally but is always available in the form of written documents. Go through the clauses and get as much information as you can.
Educational loans act as a ladder for the successful career. A good career can not only ensure you the financial stability but also show you a path for the better standard of living. Hence, before you head for taking an educational loan, don’t forget to check the above-mentioned factors.