Before taking an education loan, check these things, the application will be cleared immediately!
In today's era, education loan has become a means for children who are not financially capable of pursuing education from reputed institutions. To avail of an education loan, you have to follow the terms and conditions of the bank. This includes factors such as loan amount, interest rate, repayment tenure, and eligibility criteria.
Some education loans require you to provide a guarantor and some form of collateral, while others are provided without any collateral requirement. There are a few things to keep in mind while taking an education loan.
Eligibility: Every bank and financial institution set eligibility criteria for giving loans. In the case of education loans, eligibility is determined based on factors such as age, educational background, course chosen, and educational institution.
Interest Rate: Interest rate is an important factor while taking any loan. When you apply for an education loan from a bank, make sure to compare the interest rates offered by different banks before deciding.
Loan Amount: Banks provide education loans based on the capability of the individual. Each bank has a different limit for loan disbursement. Before applying, calculate all your expenses related to your course and ensure that the loan amount is sufficient.
Loan Subsidies and Schemes: Both the government and banks often run subsidy and scheme programs for education loans. Before taking a loan, find out whether any offer, subsidy, or scheme is available for an education loan or not.
Documentation: It is important to understand the documents required while taking an education loan. Generally, these documents include income-related papers, address proof, academic records, and admission letters. Additionally, you should be aware of the terms and conditions related to prepayment and other aspects of the loan.