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Things You Should Know Before Taking The Education Loan

In a country like India, where education is a fundamental right for every child, especially in the age groups between 6- 14 years of age. Now, education is considered to be the most important need of everyone’s life. It is the source of a bright future, great career, be in the midst of higher intellectuals, shaping one’s personality and view of life. But in a country like India, an individual does not even have the basic things an opportunity to educate oneself due to many obstacles.

In India, parents are so excited to educate their wards with the best possible education at renowned educational institutes that they can go to any extent even sacrificing their own dreams, fantasy, and luxuries. This is due to the fact that day by day the expenses of good and quality education, especially the higher education is going up with sky-rocketed prices. Most of the people fail to cope up with the rising cost of the education despite years of investments in banks and FDs. So, they end up taking an education loan for their ward, especially if their child is getting admission at some renowned foreign Universities like Oxford, Cambridge or NYU or other reputed Universities overseas. It is also important to keep in mind that educational loans are quite expensive and higher rates of interests.

So, there are certain things to know before you opt for an education loan. Some of the instances are:

  • You must know that education loan covers basic tuition fee for the course, hostel fees, and other various expenses. After saving up from your bank, you must decide the loan amount which you will take care of the rest of the expenses. It is advisable to take maximum loan amount which takes of all your education needs.
  • You must opt for long-term loan duration with only nationalized banks since this will lessen your EMI amount every month and also benefits of tax- saving. You can use any online Student loan calculator for this task.
  • A hassle-free loan sanctioned from the desired nationalized banks, you must show the bank proof of your wards good academic record along with the admission letter and fees structure of that University which you are about to get admission.
  • Before taking a loan, you also must know that the bank has the right to take legal actions against you if you do not or fail to repay the loan. It is advisable that you must make timely loans EMIs to avoid any kind of difficulties.
  • You must keep all your education loan documents safe which are received by the bank.
  • An education loan is very costly than the car loans or home loans. It is 15 % rate of interest per year. So. If this rate is not suitable for you, then consider taking home loans or car loans with lower interest rates. This can be used for your son/daughter’s higher education dreams.
  • Read and understand the terms and conditions of the loan before you sign up for a loan.

Lastly, do not make the monetary obstacles block your way of getting a higher education. Take the loan with full hope, repay it on time and grab the opportunity to study in your dream University.