Friday, 24 May 2019

How to Go About Getting Better Loans for School

“Education is the passport to the future, for tomorrow belongs to those who prepare for it today”
– Malcolm X

Education is indeed one of the most important weapons that one can arm himself/herself with. It is the gateway to a glorious life, one where there would not be any struggle to earn a livelihood or make ends meet. There are ingenious students all over the world, who probably do not have the right financial means at their disposal to prove their mettle and earn the kind of life that they deserve. There are also students who would do anything to pursue that degree at an Ivy league educational institution. However, these financial impediments can be sorted out with the right knowledge about finance and education loans.

Banks all over the world are ever ready to extend their financial support to the meritorious and the hard working. They have a host of tailor-made student friendly loans that brag of supporting the tenure of a student’s education, not just in India, but also overseas. Thus, it is essential that the young minds of the nation along with their guardians arm themselves with the knowledge that they require to apply for an education loan and pay it back within the stipulated time.

Check the fee structure of the course

The first step in applying for an education loan is to check all the details related to the course which the student intends to take up. This includes the tuition fee, the hostel accommodation fee, and also an approximate idea about the money that would be required for books, stationery, and other expenses. Once all the financial details of the course are clear in the head, an individual can proceed towards applying for an education loan.

Apply for loans from a Government recognized bank

It is always advisable to apply for loans, of any kind, from a bank that has been recognized by the Government of the country. This not only ensures the authenticity of the bank and eliminates the risk of fraudulent cases, but also enables an individual to avail various tax benefits that only a bank recognized by the Government can offer.

Check the details of the education loan

It is imperative that an individual checks the details of the education loan that the bank has to offer before applying for it. There are banks that sanction the full amount which covers all the expenses of the student and that too at lucrative interest rates. Thus, it is crucial that in-depth research is done about the interest rates and the loan amount granted by various banks before zeroing in on one particular bank.

Look for a longer repaying term

While applying for education loans, it is always a wise idea to look for banks that have the options for a longer repaying term. This not only gives the student sufficient time to earn his/her own money and start repaying the loan but also provides the parents/guardians an opportunity to pay the EMIs which does not blow a hole in their pockets.

Never be a defaulter

This is the most important aspect that needs to be considered before applying for loans. Make sure that you have back up plans to repay the loan on time in case job opportunities look bleak. This is because once an individual becomes a defaulter, he/she is no longer eligible for further loans in future.

Thus, while it is important to understand that banks are always there to extend their financial support to students who want to pursue their education, it is also supremely important to remember that one must keep in mind all the points mentioned above to avoid any financial crisis related to repaying the loans.

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