You might think your marks are all that matter for you to get into a good institute- but that is not the case. Having the necessary financial support is also of great significance. Insufficient funds can impact your chances of studying at the Institute of your dreams, even if you have more than the qualifying percentage. A higher education loan can be your savior here.
Now, procuring an education loan can be a hectic task. But there are few simple points that can help you find the most suitable higher education loan.
In this article, we have compiled the five things that you should know while getting an education loan:
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Eligibility:
Before you even apply for the student education loan, check whether you have the required credit score. And if you are a young soul who does not have an income yet, your parents/guardian should have the required credit score, since they will be your co-applicant.
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The amount you want to borrow:
There is no point in applying for a loan of INR 1 lakh if your course requires only INR 50,000. So before you apply for the education loan, make sure that you have an estimate of how much you actually need to borrow.
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Do your own research:
The best way to get the most suitable higher education loan is to conduct a thorough market research. Consider how much interest is being charged, whether it is convenient for you or not, and whether the interest rate is constant or susceptible to changes as per market regulations.
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Paperwork
Applying for an education loan from any of the leading banks is not a mere cakewalk. Once you meet their eligibility criteria, you need to get all your papers and necessary documents ready. Scrambling for your important documents at the last moment will only delay the loan approval. It does not end there; you will have to fill in hundreds of forms and go through lengthy processes of loan approval.
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Alternative money lenders
If you are not aware already, alternative sources of borrowing money, namely the P2P platforms, are one of the hottest ways to get a loan. In fact, a number of people are now warming up to P2P loans. These offer an assured means of getting financial support for your needs – be it for higher education or for buying a house. You will also not need to worry about a good looking credit score while applying for a P2P loan for your higher education.
P2P loans are disbursed swiftly without having to get into a complicated approval process. Also, the rates of interest and other fees are also reasonable as compared to the rate of interest for bank loans.
With these simple and smart ideas to grab the best education loan India, you can easily get yourself the support of funds to pursue your higher education for a successful future ahead.