How to find the best education loans in India
Education
helps you acquire and achieve greater heights in life. It is the gadget which
makes your life easier; thus, students from all across the globe are trying
their best to obtain quality education. However, due to the increasing costs of
education in India, there are a lot of students who are unable to procure a quality
education. But now they can make use of study loans and give away with their
worries to obtain the education that they want. There are a lot of banks and
NBFCs (non-banking financial companies) that provide education loans for
students. Thus, it is almost impossible to gauge the financial institution that
shall provide the best education loans in India. However, now you can find the
best financial institution for you with the help of these factors.
But
before that, let’s discuss the reasons why you must make use of an education
loan in the first place:
·
An education loan helps you fund your own educational
expenses. Thus, you don’t have to put a strain on your parent’s pockets and
exhaust their savings. The study loans provided by financial institutions are
available at way lower interest rates than the ones given out by traditional
financiers and loan sharks. You can even lower these interest rates further by
finding the best education loans in India.
·
An education loan takes care of all the expenses incurred by
you while pursuing higher education. The different expenses incurred by the
students range from the cost of study materials, tuition fees, college fees,
living expenses, travel expenses, etc.
·
There are numerous courses covered by the study loans. The
different courses are in the fields of science, arts, commerce, mass media,
engineering, medicine, etc. Thus, you can opt for the course of your choice
without any worries.
Each
and every student’s needs are different from one another; thus, it is difficult
to find the best education loans in India. However, following these factors
will help you do so:
·
Interest rates: The first and foremost criterion for choosing
the best study loan is the interest rates charged by that financial
institution. Because your EMIs (equated monthly installments) are calculated on
the basis of your principal amount, repayment tenure and the interest rates
charged by that particular financial institution. Therefore, find the one which
offers you with the lowest interest rate.
·
Collateral: The collateral required to obtain an education
loan is the quantum of principal amount borrowed and the primary borrower’s
credit history. Thus collateral can be any of your non-agricultural properties,
residential properties, fixed deposits, and life insurance policy. The best education loans in India
will ask you the lowest amount of collateral.
·
Tenure: The repayment of an education loan is done in the
flexible form of EMIs (equated monthly installment) over a period of time. You
can start repaying your loan after six months to one year of the course
completion. It is termed as moratorium period.
·
Margin amount: A study loan only covers up to 80% of the
total loan amount. You will have to pay for the rest of the amount from your
own pocket. Thus, the amount of money that you will have to shell out from your
pocket is known as the margin amount. Hence, look for the financial
institutions which offers you with the margin amount that you want to pay.
That was a very Informative Article. It has helped me getting more insights on Education Loans In India
ReplyDeleteNice Article!
ReplyDeleteThe information is really helpful to understand the education loans. Students can also get the Education Loan for Abroad Studies and plan higher studies abroad.
If you're looking for Education Loans, I would recommend you to check this for more details
ReplyDeleteEducation Loans