It is common that you face shortage of money during higher studies. With the rising cost of education it is pretty impossible to fund entire education on salary or the savings of the individual. We will discuss in detail about the various option you can opt for financial support. Educational loans are given by the banks and the non-banking institutions across India. These study loans include course fees, library fees, and project fees, traveling to some extent and hostel or dormitory charges. Usually when you take a loan you need to repay it with in the tenure of the loan. The loan can be paid in the form of EMIs and the banks charge education loan interest rate which needs to be in every month apart from the sum. Study loans provide proper financial assistance to you and help you to complete your course. Education loan are any day better than traditional finances and personal loans as the educational loans particularly focus on education and the related expenses. Also cater to the educational needs properly.
The loan amount which is disbursed should be used only for the purpose of education. The loan amount is decided on what type of course you are aiming to and also if you are opting for education in the home land or overseas education. The eligibility criteria for education loan may differ from lender to lender, but in order to get the loan sanctioned the borrower should meet the needs set by the lender. For availing a study loan a student must have a secondary school certificate. Firstly while availing a loan you should understand the key term. Know what the loan amount you are applying for is. The education loan interest rate at which you are offered by the lender. And last but not the least the tenure of the loan, as education loan requires long term. The cost of the education will be different for homeland education and overseas education as the standard of living is quite in other countries. Hence, there will be change in the education loan interest rate if the person is applying for overseas education. As the student has to start the repayment of the education loan interest rate after the completion of his or her course it is necessary for him/her to sit down and plan the repayment of the loan in advance to stay away from financial debts.
You are sanctioned loan as per your requirements. If the loan amount is high remembered that the interest rate will also be high so will be the EMI. While availing for a loan do a bit of research on the companies and the banks that are providing education loan for students at lower interest rates. There have been banks and the NBFCs who have been giving loans at a lower interest rate of 12.75 % with a nominal processing fee of 1-2 % of the principal loan amount. The lenders do understand that it is quite difficult to find a job right after the completion of the course. Hence, the have come up with the provision of the moratorium period. In which a person can start repaying the loan after he or she gets a job. You can start repaying the education loan interest rate after the completion of your course which makes it more convenient for the people.