4 questions to ask lenders while getting education loans in India

Education loans in India have helped millions of students turn themselves into highly-skilled professionals by pursuing higher education in their choice of courses. But many students have also found themselves in adverse situations while repaying their education loans. If a student takes an education loan from the right lender, then they can pursue their preferred courses without having to worry about the finances. In this article, we will tell you about 4 questions you should ask the lenders while getting an education loan from them.

 

  1. Can I get a collateral-free loan?

Many students do not have financial assets to pledge as security against their education loans. It means they need unsecured loans. If you do not have financial assets or do not want to risk your assets as security against an education loan then ask the lender if they provide an unsecured education loan.

 

  1. What is the interest rate you will offer?

Financial lenders levy interest rates ranging between 9% to 14 % per annum on education loans in India. The lower the interest rate levied on the education loan, the more the student saves as they repay the education loan gradually. Negotiate the lowest interest rate as possible on your education loan. This will help you save a lot of money in the long run. Also, if you have gotten admitted into a premier educational institute then ask the lender if they have a special scheme of loans that levies a lesser interest rate to fund your higher education.



  1. What is the tenure is the moratorium period?

Financial lenders do not expect the students to repay the education loan as soon as they finish their higher education. They provide a grace period called as a moratorium period to the students. Usually, it lasts up to 1 year from the time the student completes their education, or up to 6 months from the time the student gets their first job, whichever comes earlier. Students are supposed to get a job in this grace period, save money from their salary, and pay the first few EMIs of their loan.

 

  1. What are the value-added services provided?

Some universities offer a seat to a meritorious student only after they have verified that the student has funds to finance their higher education. Some countries only offer a student visa to a student if they have funds to finance their higher education. In both these cases, students need money to acquire a seat at a foreign university. Hence, students need services like proof of funds, pre-visa loans, pre-admission loans, fast-track loan approval, doorstep loan service, and so on while taking education loans in India. Ask the lender if they provide these value-added services.



So, these are the 4 questions to ask lenders while taking an study loan in India. We hope that after reading this article, you have knowledge about the questions to ask lenders to decide whether or not you should take an education loan from them. All the best!

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