Taking an educational loan is very common among students that aim to go for their higher studies. With such heavy competition in the job market, students need to have great academic qualifications if they want good employment opportunities.
This again depends on where students pursue their preferred course from. For them to get called up for interviews by big companies, they obviously need to pursue their further education from a good university.
Now to be able to get admission in a good university, we all know that students need to maintain a good academic background. But even though this is a major requirement, it is not the only thing that a student needs. Another major factor that comes into the picture is arranging the finances for dealing with the academic expenses.
We all know how expensive pursuing further studies can be, and this is why most students go for educational loans. But there is a lot to think about when thinking of an educational loan too. Here are few things to keep in mind in order to get a good loan plan:
Compare the different lenders
There are numerous lenders that provide loans, so you will never run out of options. Thanks to this, students have the advantage of choosing among many lenders. A smart move on their part would be to check out many loan plans and then compare their options. This will help them in selecting the best loan plan that is most suitable to them.
Check the interest rates
As we know, there are many lenders that provide study loans. Each loan provider follows its own rules and regulations. There is no standard loan amount they are supposed to give or fixed interest rate they are supposed to charge. This is why you should always check the various interest rates of the lenders, and then select one that gives you a good deal.
Choose a repayment option that suits you
A repayment plan is one of the most important aspects that one should focus on before taking any loan. This is so that the borrower can easily pay off the loan without any troubles. When taking educational loans, borrowers should always focus on the repayment plan so that they are fully aware of their monthly installments.
Check about the moratorium period
The moratorium period is like a grace period where borrowers do not have to start the repayment process. This period usually lasts for about a year after the borrower has completed graduation or about 6 months after he gets a job. This however differs with each lender, and hence borrowers should always check about the moratorium period while taking educational loans.
Check about the lender’s collateral requirements
Most lenders do not require collateral from borrowers when the loan amount is within Rs. 7.5 lakhs. It is mandatory for borrowers to provide collateral with the banks as security if the loan amount is bigger than that. If the borrower does not want to provide collateral, he should look to take an educational loan at an NBFC, which is much more lenient as compared to a bank.
Great Article! But in addition to the educational loans, one should also check out Scholarship opportunities available with different institutions. If you are looking for some educational scholarships, you should check out https://ahmedabad.globalindianschool.org/admissions/scholarships. A school student will get a good-idea about scholarship, Eligibility & Application.