All about Education Loan
Educational Loan: Purpose of a student loan is to help students pay for university tuition, books, and living expenses. These loans differ from other loans mainly because the interest rate is substantially low and the repayment schedule is deferred while the student is still in school. Before accepting any kind of student loan, one should be familiar with its basic attributes.
Students persuing Higher Education can easily finance their Studies as many Banks in India are providing student loans. Private foreign banks are even keen for funding scholarships for bright and deserving students.
With expensive professional education becoming compulsory all over the world, a student loan works out the most effective way to pay for these expenses. After completion of their professional training, students get high salaried jobs and are thus likely to be in a position to repay these loans over a period of time.
Tips to choose a loan:
- Take a loan from a bank located at your place of study than one located where you reside, unless it concerns overseas studies. This is because you will have better access to funds if you take a loan from the place of your study.
- Make sure the repayment period starts only after six to twelve months after you begin your working life.
- Banks typically prefer to finance students who opt for traditional courses.
Which courses get faster funding? In order of preference (based on research)
- Management Courses
- Technology Courses
- Medical Courses
- Engineering Courses
Banks don’t provide loans for students with a bachelor’s/master’s in Arts. Also, for courses where employment prospects are less (as per Bank’s own evaluation), loans are sanctioned on the basis of the parents’ income.
|Leading Education Loan Providers (Click to Apply)|
|HDFC Bank Education Loan||BOI Education Loan||ICICI Bank Education Loan||Other Banks|
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EDUCATION LOAN INTEREST RATES