Here are the most commonly asked questions regarding education loan

 

We always research things when we plan on buying them. If we want to buy a new laptop, then we will do as much research about the brand. Similarly, when it comes to an education loan, we will want to do as much research as we can so that we can get the best loan deal possible.

But there are many questions that will come to your mind before getting an education loan, and you will obviously want the best and the most accurate answers for all of the doubts you have. So here are few questions that are commonly asked about an education loan:



1.      What is the amount of loan that I can get?

You will want to get an education loan that is sufficient enough to cover your expenses without creating any issues during the completion of your course. That being said, most financial institutions that offer an education loan don’t have a specific limit, and it depends on your need and requirement.

2.    What kind of collateral is required?

The main concern when it comes to applying for a loan is the security that you have to provide in order to get a loan. The house you buy is the collateral for the home loan. However, it’s different in the case of an education loan. There are many financial institutions that offer you an education loan without having to give any security. So if you want to apply for an education loan, you don’t have to worry about having to keep anything as collateral.

3.      What is the eligibility criteria?

Different loans have different criteria for eligibility. Your monthly income, your credit score, your legal record are some of the things that are checked before you become eligible for a loan. When it comes to education loan, the criteria isn’t that complicated and mostly concerns your age, your citizenship, the accreditation of the university to which you want to apply to, guardians and things like that.

4.      What kind of expenses are covered by the loan?

When you apply for a loan, you will apply with an amount in mind which would be sufficient enough to cover the required expenses. Most loans cover specific expenses and not more than that. A study loan, however, provides you with an amount enough to cover more than just your fees. An education loan will cover your accommodation expenses, travel expenses, study material and exam fees, and much more.

5.    When do I start repaying the loan?

When you will be pursuing your course, you will not have to worry about repayment. The repayment begins once the course is finished or once you start working. There are applicants who ask for repayment 6 months after the course is completed while others put it at a year. There are some financial institutions that even grant you the option of repaying the loan amount only after you have secured a job.

We hope that the questions mentioned in this article will help answer most of your questions regarding an education loan.



 Related Article - Need an education loan? Ask lenders these 4 questions

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