Study is very important part of our life. More specifically, higher study, as it gives direction to your future. Nowadays, it is possible for everyone to study any course of their choice at any location, in the country or abroad. Education Loan comes with own terms and conditions and need to be repaid without any default.
Below are some points that can help you in managing your loan:
Evaluate before Applying: Before availing a loan, you should check all the aspects related to your course. The various factors that you need to consider are:
• Course you want to study
• Employment prospects both in country and abroad
• Forecast for that particular sector
• Suitability in the current economic scenario
Loan Amount: There are chances that you prove eligible for a big Loan Amount, but it is better to opt for an amount that you require. You can opt for partial funding if you have some resources to pay the fees related to that course. Taking an amount higher than your requirement will only increase the burden. Therefore, choose an amount that you can pay easily after your course gets finished.
Compare and Negotiate: You should check the interest rates offered by various banks and firms in the market. It is suggested to choose a lender with whom your parents have been banking. In such a situation, you can easily negotiate and get the lowest interest rates.
What if you are incapable to repay on schedule: There are risks that you do not get a job and could not pay the EMIs of your loan. In such a situation, banks wait for two months and then issue a notice that includes the penalty for not paying the loan. If you are unable to pay the loan even after getting the notice, the security you put as security is seized by the lender. You can also contact the lender and check if they can extend the loan term.
Avoid missing repayments: Repayments are very important part of your loan and you should not miss these at any cost. Remember that missing your repayments can affect your credit score and you would not like to have a low credit score at the beginning of your career.
Managing your loan is not a difficult task. It just requires you to plan your repayments and be on the right track.