Reasons to obtain an education loan for students

Obtaining quality education from a premium institute will boost your career to new heights. The younger generation has realized this and is putting their best foot forward to attain this. But the cost of obtaining higher education from a premium institute is out of the league for most of the individuals. Thus, there are many meritorious students who are unable to obtain quality education because of lack of funds at their disposal. However, now they can fulfill their educational dreams by opting for an education loan for students. There are a lot of banks and NBFCs (non-banking financial companies) which have started offering education loan services. They even provide discounts on the interest rates for the meritorious students and women- to promote them to study further. The interest rates charged by the financial institutions are way lower than the ones given out by loan sharks and traditional financiers.

You can make use of a study loan to study a course of your choice. Because an education loan covers courses in a number of fields such as science, arts, commerce, medicine, engineering, medicine, mass media, journalism, etc. The different types of expenses covered by the education loan for students are the cost of college fees, tuition fees, living expenses, travel expenses, etc. They even cover other sorts of miscellaneous expenses that one might incur while completing their higher education.

The various reasons why students are opting for an education loan are:

·         An education loan helps the student to fund his or her education on their own. Meaning, they don’t have to rely on anyone else for financial assistance. Because, more than often, parent exhaust their savings and gamble on their own future to secure their child’s educational dreams.

·         The repayment of an education loan for students is done in the flexible form of EMIs (equated monthly installments). This helps the students to manage and plan out their future repayments without any problems. The financial institutions have also started offering various tools such as an EMI calculator for free.

·         The collateral required to obtain a study loan is calculated on the basis of the borrowed amount and the primary creditor’s credit history and score. This collateral can be any of your residential properties, non-agricultural land, fixed deposit, life insurance policy, etc.

However, you have to ensure that you fulfill the eligibility criteria given out by financial institutions- because, you cannot avail a loan without meeting them. The eligibility criteria are:

·         You need to be an Indian citizen in the age group of 18 years to 35 years (for most of the financial institutions).

·         There must be an earning member of the Indian society who is willing to co-sign the loan amount. He or she can be any of your family members and shall be the primary debtor for the loan amount.

·         Make sure you have cleared all the pre-requisite examinations and have obtained a letter of confirmation from the university.

·         The financial institutions also check your academic background, course, institute, country and the co-borrower’s credit score, history and income.

Thus, these are the reasons why an education loan for students has gained tremendous momentum.