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!

 

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

Comments

Post a Comment

Popular posts from this blog

How to calculate your MBA education loan EMI value?

Image
  Do you want to earn an MBA degree? If yes, then study hard in your undergraduate years and clear the MBA entrance exam with flying colours. Along with that, find different ways to fund your MBA education. Many students confirm their seat at B-schools by taking an education loan for MBA studies to pay its fees because pursuing an MBA degree is an expensive affair. To help you estimate your total MBA education costs and help you estimate the EMI values to repay it, we have written this blog. Let us look at the costs you would want your education loan to cover. First, you will need money to pay your course tuition fees every year of the course. If your MBA college is not in your hometown then you will have to relocate to a hostel near your college. You will need money to travel to the city where your college is based. You will need money to sustain a good lifestyle in that city for the duration of your MBA course. If you need to relocate to a foreign city for your MBA educati...
Read more

3 features of education loans for the wards of defence forces

Image
  The defence forces of India spend tiresome sleepless nights defending the borders of our country against all kinds of external threats. They look after the safety of the Indian land, the Indian nautical borders, and the Indian airspace. And most of all, they are there to guard Indian interests—be it in the Indian mainland or away from its shores. At times, these men and women sacrifice their lives in the line of duty. The men and women in the defence forces have families and they are not able to be there with them all the time. To help make the future of the wards of these men and women bright, lenders offer education loans. These education loans are aimed at helping those wards achieve their higher education aspirations with flying colours. In this article, we will tell you the features of these overseas education loans—even known as privilege loans. Zero processing fees To keep the cost of the debt in control for those wards, some lenders offer the education loan for stu...
Read more

5 Features to look for in education loans

Image
  Education loans have helped many deserving students get the opportunity to study the course of their dreams. But you need to know what to look for in an education loan to ensure that you get the right funding. In this article, we will tell you the 5 features to look for in an education loans .   Covering all education expenses Education loans should not leave students jumbled about how to manage the finances of their education. They should cover up all the expenses of students’ education. From the students’ course tuition fee to their travel expenses, the lodging and boarding expenses, the exam fee, the library fee, the stationery and laptop expenses and so on.   So, look for an education loan that pays all your education expenses and hence, allows you to focus on your studies.   Lower interest rate The interest rate levied on the students’ education loans in India is generally between 9-14%. The interest rate directly affects the amount of ...
Read more