 |
India's First Financial HelpLine |
Any parent would
worry about their child’s educational needs. Most of the parents by now
know the heavy education expenses; whether it is a private high school,
college, university, or overseas education, the costs just keep on
adding up.
An education loan is just like a debt. The money that you borrow from the bank and repay it with interest.
The importance and
value of education is known to all of us. It is the actual wealth of a
person. However, at times, we encounter the situation where there is
willingness to study more and get higher degrees, but due to our limited
financial sources it gets bit difficult. It is under this situation
education loans prove as a boon.
Tips for Education Loan
1 ).Understand the loan:
The first and the foremost thing to keep in mind before applying for
the education loan is that one needs to understand the student/course
eligibility criteria and the aspects , which the loan covers to complete
the education.Besides tuition fee of the course the education loan
covers all the expenses payable to college viz.
examination/hostel/library fee, purchase of books/equipments,
caution/refundable deposits, insurance cover, travel expenses/passage
money for studies abroad and other expenses required to complete the
course.
2).Be confident of the targeted college:
You must check out the history of performance regarding placements of
the concerned college, in case, it is not a very renowned institute, and
you have to be very realistic in approach while joining because if you
don’t achieve good financial standing after completion of the course,
the debt will convert to an unsustainable burden.
3).Exhaust all your resources first:
Do not apply for the full amount in haste. The loan amount should be as
much as you actually need. First try to collect all of your possible
resources then find out how much more is required. This will help you to
keep your principal and interest amount lower and you will gain the
benefit of this exercise while repayment process.
4).Study the available options:Do
not hurry, do your homework, compare all the details, go in depth of
the scheme then choose for the best suitable option. Some bank may be
offering you better interest rate but on the other hand the same bank
may be charging additional processing fee, whereas bank offering higher
interest rate may not be charging any processing fee and ultimately you
will be supposed to pay back nearly same amount to both the banks
5).Know about the grace period:Make
yourself aware with the grace period very clearly because you must
start repayment as scheduled or else bank will start imposing delayed
payment charges and in worst cases education loan can go for default
also.
6).Choose the right repayment option available:Few
of the banks provide the facility to choose options for repayment.
Consider all the possible factors that can affect payment schedule and
then decide on the scheme as well as repayment option.
