Today when the financial expenses for studies are increasing day by day, education loan is a boon to those who don’t have enough finance for their studies. It helps in overcoming these financial expenses. Various types of education loans are offered by the private and nationalized banks and one needs to figure out the best amongst the available options. Here are some ways that will help you in choosing the best scheme out of the lot.
1) Knowledge about the product (loan): Before applying for a loan it is very important to understand the student’s eligibility criteria and different aspects related to it. Courses for which the loans are granted, expenses covered besides the tuition fees, Loan for studies abroad or the home country.
2) College: You must be confident enough about the college you are going to join. You must have complete information about the past placement records of the college because if you don’t achieve good job offer after completion of your studies, then the same debt will be a big burden for you.
3) Resources: First find out all the available resources you have and then apply for the loan for the required left amount. The lesser the principal amount, the lesser will be the interest charged on it.
4) Available Options: A number of schemes are available in the market and you should inquire about all of them. Some bank might be offering at lower interest rates, some may be having less processing charges and some might be offering rebate on interest rates for girls. So, don’t be in a hurry, do a comparative analysis and then choose for the best suitable option.
5) Grace period: Grace period is period for which you are exempted from paying the installment for the loan after the completion of your studies. You should be aware of it because if you do not start repayment on time, bank will start imposing delayed payment charges and in worst of the cases loan can go for default also.
6) Repayment Option and Process: You must be aware about the different repayment options and ways to pay back the installments. Think about all the possible factors that can affect your payment schedule.
7) Hidden Charges: Most of us are only concerned about the principal amount and are interested to reach repayment amount. Whereas one has to pay many other charges, which are generally underrated or not clarified by bank authorities at the time of granting loan. So, known about all the possible charges before hand from the banking authorities.
8 ) Queries: Ask as many questions you have in your mind from the bank authorities. Never vacillate to get your doubts clarified because today’s doubts can prove to be tomorrow’s troubles.
Always keep in touch with the bank after borrowing the loan and maintain a record of paid amount and leftover amount too.