Here are 5 perks you could avail of when you choose an education loan

 When you plan on pursuing your higher studies, you will be planning everything precisely. Right from preparing for the entrance exams, selecting the best university that would suit your requirement, finding suitable accommodation for yourself are usually the things on top of your to-do list. However, the most important question that comes before all of this planning is how will you manage the important and necessary expenses? How will the funds be arranged?

The answer to all these questions is to get an education loan. Nowadays, education loans have become much more affordable than they were before, and applying for them has also become quite easier. And to help you clear your doubts, here are the 5 advantages of an education loan.

1.      Education loan offers 100% financing

Unlike other loans, like a home loan or a car loan, which cover only specific expenses and don’t offer extra incentives, an education loan covers a wide range of your necessary expenses. An education loan covers not just your tuition fees, but it also covers your travel expense, the cost of buying study material, accommodation expenses, etc. As these expenses are covered entirely by the loan, you don’t have to worry about having to spend a single penny out of your pocket.

2.      You don’t need to provide security for an education loan

When you apply for any kind of loan, the thing that you are required to give to the lender is some kind of collateral. It could be your house or any other property that you own. It’s not the same when it comes to an education loan. Many financial institutions offer education loans that require no collateral whatsoever. So you don’t have to worry about keeping your house as security when applying for an education loan.

3.      Interest rates are quite reasonable for education loan

One of the things that worries people the most before applying for any loan is the interest rate of the loan. When you pay the EMI for the loan taken, the interest is also applied to it, which could drastically increase your expenses. But in the case of an education loan, it has flexible interest rates in comparison to personal loans.

4.      Education loan comes with a moratorium period for the repayment of the loan

The repayment process of most loans starts almost immediately when the intended expense is covered. So if it is a home loan, then the repayment begins as soon as you get the ownership of the house. A study loan on the other hand function differently. There is a moratorium period also known as the holiday period, which is after the loan amount is disbursed to you. You will get 6 months post your course completion or 3 months after you land a job, and you don’t have to worry about paying a single EMI during the completion of your course.

 

So these were the perks of education loans which we hope this article has helped in explaining to you thoroughly.

Thank you!

 

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