The loan amount is either handed over or disbursed to the accounts of the concerned authorities. The student can then use it for purchasing books, laptops, pay computer fees, hostel and mess charges, etc. It is needless to say that the course fee will be covered under this amount. Normally, an education loan has very low interest rates as compared to any other type of loan, such as a home loan or a car loan to name just a few. The borrower is provided with flexible repayment options. Repayment tenure offered is often equivalent to the duration of the course. However, a lot of firms have started offering holiday period of 6 to 12 months after the course completion.
With an education loan, the borrower gets sufficient time to repay the funds, thereby peacefully completing his studies without any worries. Student loans have proved to be a boon for those who cannot afford the rising prices of college fees for pursuing higher studies and have to compromise with their career in a number of ways.Education loan helps generate the required monetary assistance within a short period of time.
Before sanctioning your approval for an education loan, the lender may consider factors such as your family income, CIBIL score, etc. One thing that a borrower should keep in mind is that, a loan obtained against collateral security will be highly reliable and the capital will be more as compared to a loan that is obtained without any collateral security.For availing an education loan, having a co-applicant becomes mandatory. A co-applicant can be the borrower’s spouse, sibling or parent/guardian. Before you could think of availing an education loan make sure you consider the following points:
- If your family has enough savings which can take care of your educational expenses, you do not need to borrow any loan.
- Prepare well for the scholarship exams and you will have to pay very little.
- Government affiliated institutes offer special deductions in fees for students belonging to OBC/SC/ST.
- Only when you do not have sufficient savings, neither you are able to crack up the scholarship examinations, only then you should go ahead and apply for an education loan.