by disha mehta
Published Sun, May 28th 2017, 18:10 | Education
Education loans have become popular since the last two decades because of the rising cost of education. There has been continuous hike in the higher education since a last few years. Education loans came into picture in 1995 after that many banks and non-banking financial institutions have been providing education loan interest rate of around 10 to 12.75 %. The processing fee of these study loans is around 1-2 % of the loan amount.
Study loans are always better than the personal loans and the traditional finances because they provide flexibility in the education loan interest rate and the tenure for the repayment of the study loan. The education loans are able to cover all the expenses of education which includes the course fees, the library fees, the refundable fees, the laboratory fees, the traveling expenses and the living expenses up to some extent. The study loans get disbursed rapidly and lower the ancillary expenditure with rapid loan processing.
Education loan interest rate allows the students to make stress free repayment after the moratorium period of the loan. These study loans bring the expensive high fee education within the grasp of the students. Education loans are popular amongst the student community due to its affordability and the flexibility they offer. The lending institutions offer counseling to the students who have opted for higher education. Timely guidance and support helps the students to choose the goal rightly without any hindrance. As study loan require long term commitment it is necessary to avail for a study loan which has lower interest rate and offers flexibility in the repayment options.
Everything you should know about the study loans before availing for them:
· Education loan eligibility: Study loans are given for various professional, certified courses, graduation and post-graduation degrees which are offered by various universities and colleges. You can check for the eligible colleges on various websites which are available online
· Eligible expenses for the study loan one can avail for: Check the expenses that are covered by your loan which includes the course fees, the library fees, the traveling expenses, the accommodation charges and the other charges of the materials that are required to complete the course.
· Security and collateral:If the loan amount is up to 4 lakh no security is required. If it is between 4 -7.5 lakh there is a third party guarantor required. For the amount above 7.5 lakh a collateral security of the same amount is required.
There are lot of banks and non-banking financial institutions that are offering loans at a lower interest rate in India. These loans are given for inland and for studies in foreign countries. If the person chooses to study abroad it is always better that the person should go for a part time job to reduce the burden of the loan as this will eventually lower the loan amount and the Education Loan Interest Rate. The students can also visit various online comparing websites and avail for a loan which best suits their needs.