Education has always been on top priority and over the years there has been a growing aspiration amongst individual to pursue specialized courses or higher studies in MBA, doctorate, engineering, law, computers and other verticals in India or international universities. But along with the aspiration there arises the concern of rising inflation costs and education expenses. Therefore, it is critical for students to analyze and asses not only the universities they apply to but also their finances, as the fees for these courses require a sizeable amount of funds. While some students look to their parents for financial assistance, a majority of them rely on banks and financial institutions to provide education loan will cover tuition fees and other costs.
Education Loan aims to provide the much needed financial support to deserving students for pursuing higher professional or technical education in India and abroad. It would be provided to those students who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level.
Today, due to more proactive approach by leading private finance firms and banks you don't have to face hardships in getting loans. Finance companies work hard to ensure students applying for education loan are able to fully concentrate on studies and not worry about expenses related to the course, food, travel and accommodation while studying especially in foreign university. Some private finance firms give 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. The loan amount also includes additional benefits like discounts for insurance, etiquette training, telecom services, travel assistance and personality development.
While taking study loan lenders first verify the identity of respective individual before advancing towards approval of funds. Banks or private finance firms look through the credit information report and credit score to assess the borrower's capacity to repay debts on time and in full. Once they scrutinize things well they sanction the loans.
Some guidelines for getting student loans are as follows:
Be responsible when you borrow
Loan repayment is one of the important part of education finance and you need to clear the debt associated with your loan. As this is the best helping hand that you get during your rainy days of searching finances for your higher studies.
Maintain your credit history
For this you must make all your repayments on time. All repayments including the missed ones are recorded on your credit information report. This report will be used every time you apply for a loan.
Get proper counseling
Today, private finance firms guide student and parents through expert counselors who keep information handy and can suggest the best option of education loan depending upon the requirement and mostly important that fits into the budget. If you're confused approach them for help.
Understand your loan
Students should understand their study loan in terms of fund allocated, expense covered, interest rate applicable, discount or concession available, tenure for loan clearance, repayment options, strategy for repayments and other costs they'll have to incur on their own.
Education loan involves lot of logistical and technical loose ends which might create the unnecessary confusion; they are a boon for those needy students who wish to fulfill their dreams of study in India or abroad. They can attain good position in their career for better amenities, lavish lifestyle and possibly get an opportunity to make a mark of India on global platform while opting to live abroad.