Things that Every Student Should Know Before Applying for an Education Loan

There was a time when studying abroad was a far-fetched dream for most of the Indian students who belong to the middle-class background. But over a period of time, things have changed drastically, for good of course. Now along with maximum numbers of overseas institutions offering a huge range of scholarships, the students are more accessible to education loans that are been provided by varied banks and organizations. Getting an education loan might be easier, but before heading towards opting for it, the students for sure should consider the cons and pros of it. The well-prepared points below will hopefully help the students who are thinking of taking an education.

Determine Interest Rates: Go for detailed and thorough research on how much interest you would be charged on your loan as later it should not come as a shock and you are well-aware regarding it. Also, check whether the interest amount will be invariable or will it change according to market trends.

Opt for long-term repaying loan period: Long repaying period means the students/ parents are accountable to pay thin EMIs, which will greatly lessen the financial burdens. Tax saving is another factor which the parents can enjoy through considering long-term repaying loan period.

Decide Amount of loan beforehand: Knowing the actual amount before getting in touch with any bank, will actually help. Determine the course fee and expenses that you will have and know those savings before deciding upon the amount which should be borrowed from the bank as an education loan.

Make payments on time:  One should not be a defaulter, especially in the case of educational loans, as it can majorly affect receiving the degree or completing the course. Moreover, if someone fails in replaying the loan on time, in the future, no bank will sanction the person a loan. 

Understand the Financial Capabilities: You should carefully consider the financial capabilities and liabilities of your family and then opt for an education loan, with the intention of repaying it on time so as to not to include you and your parent's name in the defaulters' list.

Which bank to opt for education loan? : There are several private and government banks offering education loans at reasonable interest rates. However, research on the repayment terms, loan facilities offered and other terms & conditions before finalizing any bank is imperative for the students/parents to check for.