Education is
one of the most planned investments in India. Every parent wishes a bright
future for their child. In consideration to liberalization in monetary policy, onset
of education loans has facilitated students to pursue higher studies in India
or take up studies abroad. It helps the deserving bright students to follow
their choice of career without worrying about funding. It has become a boon for
both parents as well as students.
Nowadays,
educational loan facility is offered by all the banks as well as financial
institutions in seeking school and college admission. These banks have
scrutinized the scope and needs of education sector and have accordingly,
formed alliances with recognized educational institutions to ease the burden of
candidate. Moreover, parents and students can easily get education loan while
they are applying for online school admission and online college
admission. The question that arises in our
mind is which bank is giving the Education loan Interest at cheaper interest rates?
Let’s
discuss the points to look at before applying for education loan for school or
university admission.
Rate of Interest: The foremost point of consideration
before choosing the bank is the offered rate of interest. It depends on three
things I.e. Loan amount, Tenure of loan, Educational institution. The obvious
option would be the bank with a cheaper rate.
Eligibility Criterion: Each Bank or FI has fixed its
eligibility criterion based on which the loan is granted to the applicant
student, for instance, student’s academic track record, Type of institute I.e.
whether it is approved by central or state government or any foreign
institution, viability of the borrower, nature of the course or the repute of
the institute etc.
Repayment Method: Every bank or FI has its own
repayment criterion i.e. some fix it up to 5-7 years or some start after the
completion of course or as the student get placed and start working.
Collateral/Margin/Third
Party Guarantee: It is a must for all the banks provided the loan amount is
above Rs.4 Lakhs. One can choose a bank/FI depending on the kind of security
the applicant can give to the bank or FI.
Amount of Loan: This is generally fixed for all the
banks i.e. Rs.10 Lakhs for higher studies in India and Rs.20-30 lakhs for
studies in abroad.
Source:
http://www.blog.epravesh.com/how-to-get-education-loan-in-cheaper-rate-in-india/
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