Discover best education finance for higher studies
Education is the building block for an individual in life. It lets him or her shape up career, attain good position in work or business and lead a successful life. Education also help shape up the society well and their by lead to overall progress of city, state and country as well. In today’s definitely education is on top priorities of your life. Parents want their children to get admission in the top notch professional university to get the best degree under their belt whether in India or abroad. However due to the rising inflation costs, high education amenities and growing lifestyle culture education costs are touching sky high.
It has become a daunting task for parents to arrange finances for their child’s education. While there are options like scholarships for Indian students, traditional finances, property mortgages, or alternative subsidizations, but these options have to be thought and worked upon beforehand, as it can be time consuming process. Secondly, these finance medium have extremely high rate of interest, limited time to repayment and no flexible options to makes repayments.
In today’s time staying and living abroad along with the payment for your choice of course require a huge amount of money. With the recent spurt in global economy these costs are rising even further.
But leading banks or private finance firm in India are willing to be a part of your dream. Government banks and private firms have taken concrete steps for providing better education facilities to the youth of our nation. In order to make sure that no student is denied of pursuing higher education, various banks and private finance firms have come up with state-of-the-art facilities for best educationloan scheme in town. So bank a suitable opportunity now and create own your world of successes by pursuing good and quality higher education in India or abroad.
The article discusses six important factors before choosing the Education Loan in India for your child’s sound career:
It is the primary factor to decide upon your loan. The growing competition in market proves beneficial for customers. They can manage finances at affordable costs. Some private finance firms give student loan at no margin money costs. The interest rates offered are as low as 12.75% and the processing fee is mere 1-2% of the loan amount being calculated on a case-to-case basis. They design study loans without setting any cap on finance and provide 100% coverage of education costs, making such young talents of India free from unnecessary burdens.
Way Interest is charged
Some banks or private finance firm start charging interests immediately after the disbursal of the loan. How this interest is charged will determine the amount of interest you will pay. Enquire carefully whether it is charged on a daily reducing balance, or on a quarterly reducing balance. Also, bear in mind that whether the interest rate charged on your education loan is fixed or floating is also a matter of concern.
In case your repayment starts within six months of course completion you can request the lender to re-schedule the repayment period or seek for a moratorium period. A moratorium period is a time during the loan term when the borrower is not required to make any repayment. It is a waiting period before which repayment by way of EMIs begins. Normally, the repayment begins after the loan is disbursed and the payments have to be made each month. Students need not pay interest during the moratorium period.
Fees and other costs
Usually, it will stand out as your Education Loan in India if you manage to pay optimum fees associated with loans such as processing fees, administrative fees, documentation costs etc. at its minimal.
Collateral, guarantee or security
Generally there is no collateral security for loans up to Rs. 4 lakhs. However, loans ranging from Rs. 4 lakhs to Rs. 7.50 lakhs, require collateral in the form of a satisfactory third party guarantee. And for loans above Rs. 7.50 lakhs, collateral security of appropriate value or co-obligation of parents or guardian would be required.
The down payment
While government banks demand for margin money of around 15-20% of the loan amount to approve loans, some private finance firms give foreign study loan at no margin money costs. They design education loans to cater their needy clients without setting any cap on finance and provide 100% coverage of education costs.
It is advisable comparing interest rates, various fees, collateral requirements, and down payment requirements across various banks or private finance firms will help you find out the Education Loan in India that fulfills your higher education dreams without burning a big hole in your pocket.