Explained: The need for an education loan in India


In recent times, educational expenses have increased beyond the reach of many meritorious students and parents. Thus, in order to support their child’s dreams, parents often exhaust their life-worth savings in the form of fixed deposits, jewelry, etc. However, now the students can self-finance their educational expenses on their own by simply opting for an Education Loan in India. There are a number of new-age financial institutions in India that offer study loans at way lower interest rates than the ones given out by traditional financiers and loan sharks. Further, the banks and NBFCs (non-banking financial companies) even provide an additional discount of 0.5% on interest rates and processing fees for meritorious students and women applicants. 

Other than that, there are a plethora of other reasons why you should be applying for a study loan in India, and they are here as follows:

·         A study loan takes care of a number of your education-related expenses such as the costs of your tuition fees, living expenses, travel expenses, etc. Further, an education loan in India even covers a ton of other miscellaneous expenses that you incur while pursuing your higher studies.

·         There are a variety of educational courses in a number of study fields ranging from science, arts, commerce, medicine and engineering to mass media, architecture, MBA (Master’s in business administration), etc.
·         The repayment of an education loan in India is done in the flexible form of EMIs (equated monthly installments) over a period of time. Therefore, you can easily plan out and repay all of your installments without putting a strain on your wallet. These installments are calculated on the basis of the principal borrowed amount, interest rates charged by the financial institutions and the repayment tenure opted by you.
·         Further, the financial institutions will even provide you with an EMI calculator on their online websites. These online tools are available for free-of-cost; therefore, you don’t have to pay a single dime or penny to make use of an EMI calculator. Even the interface of the calculator is extremely user-friendly in nature; meaning, you don’t need to be a tech savvy genius to make use of this tool.

However, financial institutions do have set certain eligibility criteria that you need to fulfill to be able to obtain a Best Education Loan in India. These eligibility criteria are here as follows:

·         You need to be an Indian citizen in the age group of 18 to 35 years to be able to apply for a study loan. Further, there must also be an earning member of the Indian society who must be willing to co-sign the loan amount and become the co-borrower. This co-guarantor can be any of your family members such as parents, siblings, etc.
·         The financial institutions also check the co-borrowers credit score, history and income source while sanctioning your education loan in India. Further, the banks and NBFCs (non-banking financial companies) also check your academic background, course of choice, letter of confirmation from the university, etc.
·         Also, make sure that you have compiled all the required documents with you.

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