The fact that education loans saw an increase of 9.25% in the financial year of 2018 makes the popularity of the same quite evident. These loans help meet expenses related to education but are limited to their usage.
Few Steps to Avail an Education Loan For Higher Studies
Step 1 - Learn about your requirement
It would be smart to estimate the expenses that one would incur in an academic year or during a course before applying for an education loan. The borrower must take into account the session and tuition fees, cost of food, accommodation and transport, and contingent expenses before finalising a loan amount.
Step 2 - Check the eligibility criteria for personal loans
Before availing a personal loan for higher education, borrowers must check its required loan eligibility and if they match it. Once the borrower has checked their eligibility, they should take into consideration all the vital features of the said loan.
Step 3 – Consider the tenor to calculate EMI
EMI and tenor are directly related to each other. The longer the tenor; the lesser the EMI. But again, the interest accrued on the loan amount is higher. Use a personal loan EMI calculator to find out the EMI amount before applying for the education loan.
Step 4 – Opt for a reliable lender
Borrowers should gauge the merit of their choice of lender, the way they gauge the features and benefits offered by a personal loan.
Borrowers must opt for a lender who not just offers substantial loan amount at competitive rates but also disburses it quickly and offers a comfortable tenor to repay it.
Borrowers should take into consideration each and everything that may enhance their quality of education before availing a personal loan for higher education. Doing so will allow them to account for all the additional expenses they may incur in their course of higher education.