Tips for Choosing the Best Education Loan for your Higher Education
Tags – study loan, education loan for abroad studies, education loan calculator, education loan schemes
As per the reports published by ICEF, India is considered the second-largest reference when sending students abroad for higher studies. Nowadays, every parent wants to provide their children with a quality education from prestigious institutions, either from India or abroad. However, the cost of education in such renowned institutions is considerable and may cause financial distress to the parents. In this scenario, education loan plays a pivotal role in financing higher education. This loan is one of the convenient ways to fund courses in such institutions, and now parents can afford to support their children’s education without any monetary stress. Moreover, the repayment terms of this credit instrument are favourable, making it a go-to option in such scenarios.
But study loan can prove to be a big financial burden if it is not managed properly. So here are few tips for the borrowers to repay their loan efficiently.
To ensure a hassle-free repayment, borrowers can take help from an education loan calculator that helps them to evaluate monthly instalments against their loan. With this calculator, borrowers can estimate their financial liability and choose tenor accordingly.
Tips for choosing the best education loan for higher studies
With multiple options available in the market, finding a suitable loan provider that meets your requirements is difficult if you do not have enough experience. In that case, here are some top tips and tricks that will assist you in choosing the best education loan for abroad studies without any issue.
Tip 1- Apply for the exact loan amount
Sometimes borrowers apply for a higher loan quantum without assessing their repayment capability. Usually, applying for a higher loan amount becomes a financial burden because it exposes them to the risk of delayed payment or default. This can even have a severe impact on their credit score.
Hence, the wisest thing a borrower can do to avoid financial stress is to apply for the exact loan amount he/she needs. To evaluate the exact loan amount that one needs to apply, applicants can factor in the tuition fees and other college or university expenses.
Additionally, by evaluating these factors beforehand, borrowers will know how to manage their finances while studying abroad and any financial difficulties.
Tip 2 – Choose loan tenor depending on repayment capability
Usually, choosing an extended tenor while availing education loan attracts low EMI, which makes repayment easier for the borrowers. Inversely, if a borrower chooses a shorter tenor, they would be servicing higher EMIs but can clear off the debt sooner.
Tip 3 – Find an affordable interest rate
One obvious factor that students should look for while availing of education loan schemes is the interest rate. So, it is important to choose an interest rate carefully. Students should also consider whether the interest rate is fixed or floating. Floating rates differ based on the economic trends and reference rates and can affect repayment.
Studying abroad in prestigious institutes comes with its set of perks. However, if a loan for education may not meet every expense. In such cases, alternatives like a loan against property can be handy. It comes with no end-use restrictions, which allow borrowers to meet expenses such as accommodation and food, travelling etc.
Besides, borrowers can also enjoy pre-approved offers on a suite of various secured and unsecured financial products such as loan against property, home loan etc. These exciting offers make application procedures simpler and save time. Intending borrowers can check their pre-approved offer by mentioning their name and contact information.
Therefore, eligible students can also apply for different education loan introduced by various financial institutions operating in India. Also, there are different Government schemes that can help them to support their education abroad. Otherwise, they will always have the option to go with a loan against property. In that case, they should keep some things in mind before applying for a loan against property for education.