Education loan for young aspirants

All of us are born with a unique personality and education just adds a bit more to the charm.

Without education, it becomes impossible to have a broader outlook towards life. Education

gives a clearer view about all the problems in life. It is but natural that to earn something you

have to pay a certain amount. Same goes to education. It does not come for free. And these days

education costs more than how much we can afford. Although, basic education can be completed

with the help of Government aid, pursuing higher studies seems to be an unachievable task with

such high education fees. But, there is always hope in some or the other form such as education

loan.

India being a developing country, also has a lot of aspiring students who wish to reach new

heights. Students who have bigger dreams but lack the needed financial support can always

apply for an education loan. It is one of the safest and fastest method of obtaining money when it

comes to pursuing higher studies-be it in India or abroad. All thanks to technology and the

growing popularity of the internet, applying for loans has become a lot more easier as compared

to the previous times. Also, previously there were only a few kinds of education loans, but now-

a-days, private firms have also fastened their belts to give students some of the best possible loan

schemes. There are competitive and customized loan structures designed keeping in mind

students belonging to various classes of the society.

The tenure provided by such firms to repay the funds is comparatively high. This could also be

the possible reason why more and more students these days opt for an education loan to complete

their higher studies. Traditional methods of generating money are losing importance because

unlike an education loan, they do not offer flexibility in repayment. Also, these methods do not

cover expenses other than the basic academic fees.

Education loan up to Rs. 4 lakhs, do not require any form of collateral security. Loans between

Rs. 4 lakhs to Rs. 7 lakhs demand collateral in the form of a satisfactory third party guarantee. If

the loan seeker avails an amount more than INR 7 lakhs, he will have to produce collateral in any

form of residential property (flat/apartment), existing house mortgaged and non-agricultural land,

fixed deposits, life insurance with a surrender value equivalent to the loan amount.

When it comes to repayment, you can start it after the completion of the course or during the

course itself. In addition to the duration of your course, firms offer a maximum grace period of 6

to 12 months to repay the loan. Opt for part time jobs along with your studies so that you can

gather enough funds to start paying your debts within the given time frame. Those who delay

their EMIs, usually have a negative CIBIL score, which shortens their chances of availing any

kind of loan in the future.

Source : http://www.avanse.com/education-loan