Education Loan

Tips For Education Loan

Along with the burden of exams and getting admission into a good university there is another major issue, which the students have to deal with and that is to arrange the expenses. To overcome this burden many banks offer different types of education loans. Although it is quite tuff to figure out the best scheme available, students need to clarify certain things before deciding on one. We have come up with few tips which would be of help while picking out the best option.

The student loans are increasing constantly, in case of India; the number of student loans has increased more than ten times since 2004, this calls for better awareness among the students and the parents. So these pointers would surely help you, avoiding excess fees and extra interest costs, protecting your credit rating, and keeping your payments affordable.

The first thing to keep in mind before going for any loan is to do your homework very carefully. Do read the terms of each and every loan option carefully before applying. You may get a better rate through a different bank, so you should explore all your options. It is very important to understand the eligibility criteria and all the other aspects, which the loan covers to complete the education, before applying.

Understand the loan

There is different grace period for different types of loans. Grace period is the time you can wait after completing your course before you have to start making your payments. So you should have a clear idea about the market and anticipate the Job scenario once you leave the college, so you are in a comfortable position while paying instalments.

Know Your Grace Period

There has been a sharp rise in the number of defaults, as the lending rates have increased over the years. Non-payment spoils the credit score of both the student and the co-borrower, so never ever default on your loan payments.

Do Not Default

It is always better to pay off your loans as soon as possible, but at times lenders impose extra fees for pre-payment of the loan. A certain percentage of the remaining balance is charged in case of loan closure.

Pre-payment fees of loan

If you have any queries about education loan, or need help about how much to borrow, don’t be reluctant to contact the bank’s loan executive.

Source : http://blog.nba.edu.in/2014/04/tips-for-education-loan.html

Keep these pointers in mind and don’t hesitate to ask for help

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