Steps to Follow Before Applying for an Education Loan
An education loan helps enrol in your dream institute when money is tight. The top bank strives to provide financial support in both India and overseas. Students can enjoy attractive study loan interest rates starting at 9.5% per annum with an upper limit as high as ₹75 lakhs. It helps with education financing in 3200+ universities across 25+ countries. The loan sanction is quick with a seamless application process. The product has been carefully created after extensive research on the challenges and requirements of Indian students.
There are a few steps to follow before applying for the loan. It helps speed up the process and reduces the risks of rejection. Here’s what you may consider.
The Right Lender
A good bank will offer flexible repayment options, customised solutions, up to 100% financing and doorstep loan procedure fulfilment. Compare a handful of banks and pick the one that offers wide coverage for expenses like book purchase, examination/lab/library charges and purchase of laptop and uniforms along with tuition and hostel fees. Make sure no collateral is mandatory to get study loans. Do check the moratorium period as well which may be the whole course duration.
Eligibility Criteria
Verify your eligibility through different modes like branch visits, calling agents, websites and mobile applications. You can also enter your application information online and wait for the executives to assist you for the rest of the journey. The basic eligibility criteria of a well-established bank are that you must be:
- Indian national (including NRI)
- 18 years old and above
You should also have secured admission to the desired course or institution. A pre-admission sanction works if you do not have a secured admission yet. Meeting the requirements can ensure a hassle-free study loan application procedure.
Charges and Fees
A typical education loan will include processing, stamping, cancellation, EMI bounce, late payment, EMI pickup, physical statement of account, document retrieval, document list and cheque swap charges. Further, GST is applicable on all service charges. So, visit your bank’s website and take the time to go through each one carefully. Know that the schedule of charges is subject to revision from time to time by your bank. A transparent idea of the bank education loan interest rate and related expenses will help you make an informed decision.
Collateral Needs
See if assets like stocks or property need to be pledged as collateral. It is best to avoid banks that do not provide unsecured loans. This is because you run the risk of losing high valuables like your home if you are not able to repay the debts. The lender can repossess anything from car, gold and cash. Work with a bank that has a penalty policy in place which is much easier to handle. See if a grace period of at least 12 months is allowed. This can make sure you are paying the EMIs on time without financial strain.
Use an education loan interest rate calculator to arrive at the EMI. This will help you understand if the expenses are within your budget. Further, read all the terms and conditions carefully and clear your concerns before applying.
