Quality education will strengthen the future of an individual, and help him or her attain success in life. Without proper education, you cannot have a fair sense of right or wrong in day-to-day life, you can’t take a decision for the betterment and individual progress. However, due to the escalating educational costs, many middle-class aspirants are unable to fund their higher studies on their own. If you too wish to pursue higher education; however, run short of finance then you can take Education loans in India. Before opting for a loan, you should evaluate your savings and the amount required to borrow a loan. Most government banks will demand to pledge collateral security for the small loan amount as well. Collateral security is an asset that the borrowers offer the lenders to secure the loan. However, some private lenders are willing to offer collateral-free study loan up to Rs 40 lakhs and with instant loan sanction in one day.
The lending bodies evaluate few parameters to determine the loan eligibility such as your academic records, monthly income of co-applicant, credit history, bank statement and KYC-related document before approving the loan. If the student is working professional his or her income will be considered at the time of sanctioning the loan, and if the student is dependent on his or her family for educational expenses, he or she would be eligible for loan amount solely based on parents/co-guardian’s income. A student who wishes to pursue higher studies in a foreign nation is given customized loan solutions such as Pre-Visa Disbursement Loan, Pre-Admission Loan, Certificate of Availability of Funds, GRE score based loan, Bridge loan, fast track loan, etc. that will set them free from financial obstacles.
Lenders will check the reputation for the university, job prospects of the course, and whether it will offer the student a sound career opportunity. While opting for education loans in India, you should always try and pursue career-oriented course such as engineering, doctorate, management, civil aviation, master’s with high job placement so that once you complete studies, you won’t have to struggle in seeking a job and you comfortably start your loan repayment.
As far as loan repayment is concerned, you can repay it after your course completion. Some private lenders give a grace period of six months to one-year duration after the course completion termed as moratorium period for loan repayment. Thus, you can make the optimum use of this time to secure a job, and start repaying the money. Experts’ advice if you repay your interest only during this time, it will significantly bring down the educational loan costs.
Private lenders offer education loans in India with attractive interest rates ranging between 11% to 15% and mere processing fee on it. Good academic records and excellent credit history of co-borrower will help you to negotiate with the lenders for low- interest rate deals. Compare quotes online while preparing for the entrance exam, and choose the best lender as per your affordability and financial requirements.
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