The best education loan interest rate is something prospective borrowers search for when searching for the best bank or NBFC. However, visiting every lender and researching their loan interest rates is impossible.
The key to landing on an offer that matches your needs and repayment capacity is to consider a few factors. It is recommended to go to a third-party website first and compare offers for a personal loan for students. Besides saving you time, you’ll even be able to apply for the best deals in the city with this tool. It is available round-the-clock, free of charge, and has an easy personal loan disbursement process.
It is also beneficial to have a strong CIBIL score. Your credit score plays a crucial role in your ability to make timely payments on your EMIs. If you pay on time, lenders will be able to offer you the best interest rate on your education loans. Furthermore, you can lower the interest rate if you choose a shorter term. These factors can help you reduce your EMI payments to any financial institution.
When taking out a student loan, what factors should be considered?
Nowadays, graduating from an acclaimed university is almost impossible due to its high tuition fees, which many people cannot afford. It is, therefore, easy to finance your dreams with an education loan. Students can achieve their academic dreams with the help of education loans offered by banks and non-bank financial companies (NBFCs).
An education loan should be considered after considering the following factors:
1. Loan eligibility:
You must meet specific personal loan eligibility criteria online and submit supporting documentation to qualify for an education loan.
2. Repayment structure:
In addition to learning about the eligibility of personal loans for students, borrowers should also understand the repayment structure. By doing so, they can assess their repayment capacity in advance.
3. Additional charges, terms, and conditions
Before applying, you must read the terms and conditions to ensure no additional charges. In the case of hefty amounts, an education loan is a true solution to relieve tension and stress.
Is taking an education loan in India a good idea or a bad idea?
Advantages
- IIMs and other good institutions will charge high fees for good education
- You can be independent. The cost of your higher education does not have to be covered by your parents’ lifetime earnings.
- You take on many responsibilities when you take out a loan to finance your studies. Studies will most likely be taken seriously by you.
Disadvantages
- The rates are quite high compared to home or vehicle loans (approximately 10-11% yearly).
- You must have your parents or another person as a guarantor if you want to take out a loan. By doing so, they are also bound by the loan you made to them.
- There is no doubt that you will have to repay this personal loan for students. To qualify for this loan, you will need to be very clear about the scope and content of your education.
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