Things to keep in mind While Applying for Education Loan Today, studying in a premier college for higher studies in India has become a pretty expensive affair. No, doubt that it becomes more expensive if the student opts for a foreign university or institutes. Though we all know that there are quite a few scholarships and monetary grants available, not every student is able to secure them. And, this makes it obligatory for many students to opt for an Education loans. Well, this article is loaded with few tips that you can follow if you are applying for an education loanApply in Advance: Loan processing usually takes time due to the documentation process, which is then followed by the approval from the lender or any financial institution. Hence, one should not wait for the confirmation of admission from your desired educational institution, but instead of that, you can apply beforehand. In fact, it would be better if you apply for the loan proactively, as it will help you save your last minute hassle. Loan Eligibility: While you are clear about the course you want to pursue from your Dream College or university, one must need to check his or her Education loan eligibility. Like whether the lender offer loan for that particular course you wish for. Documentation Required: Collating and arranging the documents before-hand can help you get your education loan easily and faster. Pre-Payment: Should you pre-pay your education loan or not? Well before pre-paying your education loan, you should do a thorough cost-benefit analysis because pre-payment involve some amount of penalty charges. Understand the Moratorium period: It is the period of time which is given to you after you complete your course before you start making your first payment. The period usually varies from one lender to another. While you set your eyes on education loan from a particular lender, one must inquire about the grace period. Just make sure that the courses you decide to pursue make you capable enough to start off with the repayment of education loan within the grace period. Strategy for Repayment: Well, budgeting is really important whether you borrow loan amount on the name of your parent or yourself. Before you start earning, it is better than you plan or devise a strategy for repayment in advance. The first and foremost priority of you should be to cut the costs on unimportant things and focus on paying off the education loan amount as quickly as possible. Why we are saying this to you, because an education loan helps you to fulfill your aspiration, don’t let it become burdensome. Cost over EMI: Usually students go for the loan with longer tenure so that they have to pay lesser EMI, but the cost of education loan in this situation would be much higher due to interest payment. Therefore one should not opt for very high tenure, rather opt for a shorter tenure (depending on the loan amount). Your EMI would be higher, but the loan would be cheaper and you would be able to finish it faster.
Hope this information has been helpful. So, what are you waiting for? Just go and grab the opportunity to pursue your course in your dream institution.