4 mistakes to avoid while taking an education loan

 

Education loans are curated to fund higher education of students, be it in India or abroad. They have made higher education more accessible to common citizens. But many students are often barred from getting an education loan as they fill incorrect information in the education loan application form or submit incorrect documents. If students steer away from such mistakes, getting an education loan would become much easier. In this article, we have compiled information about the common mistakes students make while getting an education loan, and how to avoid them.

 

 


 

  1. Not reading the education loan terms and conditions carefully

Students do not carefully read the terms and conditions based on which lenders offer them education loans. This mistake is avoidable. They should carefully read the terms mentioning the benefits they would get from the education loan. They should also read the conditions that let them fully enjoy those benefits, and the conditions that exclude them from reaping the benefits of their education loans. Students should also ask their lenders to put case-specific conditions in their education loan agreements if need be. For instance, ask the lender to include a third-party FOREX vendor you want, to convert the education loan money from Indian Rupees to your host country’s currency.

 

  1. Estimating the education expenses inaccurately

Sometimes, students estimate the education-related expenses inaccurately. This mistake is avoidable as well. They should talk with their seniors, and calculate the tuition fee of their chosen course. If they are going to relocate to the city their university is based in then they should also consider the higher education-related costs like travel expenses, lodging and boarding expenses, mess expenses, exam fee, library fee, laboratory fee, stationery and books expenses, laptop expenses, and so on. Calculate these expenses accurately to the last penny.

 

  1. Filling incomplete or incorrect information in the loan application form

Students fill the study loan application form incorrectly. They should be attentive to avoid this mistake. They should read the important prompts carefully before filling the education loan application form. They should spell every detail such as their name, their residential address, their contact information, their social identity numbers, their academic record, and so on carefully in the application form. Be very careful about such details to ensure that your application form does not get rejected by the lender.

 

  1. Not submitting the right documents

Students lose out on getting an education loan for their higher studies when they do not provide right documents to the lenders. They should provide relevant authentic documents to the lenders. They should avoid submitting an incomplete set of documents. If they provide incorrect or fake documents, their loan application might get rejected by the lender. This is something that is easily avoidable.

 


 

So, these are the 4 mistakes to avoid while getting an education loan to pay the expenses of your higher education. Please consult a reputed financial advisor while planning the finances of your higher education. All the best!

 

For more details - 4 benefits of unsecured education loans

Comments

  1. Rita BiswasMay 27, 2021 at 3:52 AM

    Hey, this is a great piece of information, that give more understanding on Education Loan For Abroad Studies and how to apply for it.

    ReplyDelete

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