Vaishnavi had been working hard to get a good score. She wants to fulfill her dream to go for undergraduate course to Ivy League college. She is confident of scoring a good score and making her dream fulfill. She would be the first one to reach such heights not only in her entire family but even in the area that she lives in. She carries blessings from all elders; after all she is both hard working and talented. But will the blessings and hard work clubbed with talent help her in achieving what she wishes to? She would definitely need financial assistance since studying abroad is an expensive affair.
What she would need is an education loan. And following are the important things that one must know before starting to apply for one.
Amount of loan needed
Understanding the course fee is important. But even more important is to get a fix on other costs like travel, boarding and lodging, food etc. Many a times one misses on factoring such expenses that form an important part of the education expenses. One’s own savings or parents’ savings might just get consumed in the living costs itself. The allied costs can really shoot up the overall fund requirement so it is important to take these into account.
Some colleges also permit one to work for a few hours in a week that can help them sustain their living expenses. So one needs to find out these details before arriving at a conclusion on how much of loan needs to be picked up.
Repayment term is an important aspect. Longer the term, thinner the EMI. A lower EMI will help the student to pay right from the beginning of the job even if the salary is small. As the pay grows one can start to pay a higher amount or decide to pay a lump sum amount to foreclose the loan.
Interest rate being levied
Interest rate being charged is the single most important factor that will either hike or reduce the outflow on repayment of the loan. One must research well before deciding the lender. All the information is available online today and one must explore and weigh options before deciding.
Do check out on the government banks as well since many a times they have better schemes for a set of students. It will only be prudent to do the homework well.
Terms like moratorium period, processing costs among others are also important aspect of a loan. Will the interest be required to pay during the moratorium period or will it be part of the regular monthly installments that start after the course is over will help you decide on what needs to be done on the lending institution.
Education loan is extended both with and without a collateral. A loan of up to 10 lakh may not need any collateral but the loan amount greater than this threshold will definitely need the applicant to furnish one. So if the requirement is for a larger amount then one must have a free collateral to pledge with the bank.
Since one or both parents can stand guarantee to repayment, their income documents are also as important as the offer of admission from the college. Apart from keeping the documents ready, one must also check out the latest credit score of parents to ensure that there is no anomaly on this important aspect that gets considered in loan processing.
Job opportunities/ Campus placement
The campus placements and job opportunities after the course will be consequent in an early start of earing and repayment of the loan. Therefore a complete understanding on what one can expect post the education becomes significant.
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