Going in for a student loan to finance your further education plans is always a good idea. It allows you to turn your dream education into a reality without needing to rely on your parents, friends or relatives.
However, with so many finance solutions available in the market, comparing offerings and finalizing on one can provide to be a tricky task. That’s why this article will highlight a few steps you can follow when looking for the best education loan in India.
1. Make a list of your options.
The market is flooded with lenders offering varying financial solutions. In fact, as a borrower in today’s day and age, you will be spoiled for choice when it comes to the number alternative available to you.
So to start with, you should create a list of all your potential options. You can do so by doing a simple internet search for providers of study loans. You should be able to find a host of aggregator sites that will list the various lenders in the market. You can make a list of trustworthy and noted lenders to form an initial consideration set.
2. Weigh the pros and cons.
Now that you have a consideration set, it’s time to knock-off any alternatives that are not up to your expectations. You can do this by comparing interest rates offered; note that most lenders provide rates varying between 10 and 16 percent per annum.
Another factor to compare your alternatives against is the extent of funding offered. Some lenders will require you to pay some margin money, whereas some lenders will offer to cover the entire cost of the course and some will even take care of living expenses over and above the cost of the course.
Also compare tenures offered and opt for the lender that offers the longest tenure. Longer tenures translate into smaller EMIs and easier repayments terms that can be cut short as and when your financial capabilities improve.
3. Research the short-listed Study Loans In India.
After a thorough comparison, you should now have a few short-listed options. You should get an in-depth understanding of these financial products. Go online, visit aggregator sites, read reviews, check ratings and form a well-researched opinion. You can also visit the website and look at other salient features such as the charges, repayment options, disbursal times, etc.
4. Learn about the eligibility criteria and documents.
After you’ve selected a lender, it’s time what’s required for you to successfully apply and avail the study loan. Read-up on that lender’s eligibility criteria, see if you are lacking anywhere and try improving your credit score to ensure quick approvals and better interest rates.
Next, read-up about the documents needed. Most lenders will require you to furnish things like, your GRE/GMAT scores, university admit letter, mark sheets. Some lender and banks may even require you to provide your co-borrower’s IT declarations, income proofs and house papers too. You will also need to provide your credit score.
5. The last step is to apply.
You’ve compared Education Loans For Students, researched about the lenders, found about eligibility criteria & documents; now all that’s left to do is to apply! You can do this in 2 ways, the first is to visit the branch to submit your application, and the other way is to apply online. Yes, there are multiple lenders that allow you submit your application form, along with scanned documents and avail approvals completely online.
So there you have it, a basic step-by-step guide to help you compare and choose from the Study Loans In India available in the market today.
Good luck and study hard!