Want to avail a study loan? Follow these simple parameters…

Higher education loan offers financial help to millions of aspirants around the nation who have the drive and the necessary qualification; however, they struggle to pursue it because of lack of funds. As costs of education keep soaring high, higher education loan comes as a blessing in disguise to finance the dreams of such students. Just like any other loan, these loans are given once the borrower meets all the parameters and eligibility criteria. Since these loans are offered to students they come at concessional rates and need minimal formalities to be completed for quick and instant approvals. The main ideology behind this is that no deserving student should be denied an opportunity to fulfill their dream for higher studies due to insufficient finances

Let’s look at some of the parameters to avail higher education loan:

Eligibility Criteria

Although, lenders are willing to approve your loan there has to be certain parameters based on which you will be granted a loan. These are your student's academic score, parent/guardian credit score, course details, the country they wish to pursue higher studies, the currency rate, and collaterals you can keep. After thorough evaluation lenders will offer you a particular loan amount.

Loan Amount

When it comes to borrowing study loan be clear about the amount you need. Because taking additional money would only mean you have to keep paying more to the lender. Ideally, your higher education loan should cover our expenses like tuition fees, exam fees, lab and library fees, caution deposit, travel, books and equipment, projects and study tours. So, sit with your loan expert and discuss thoroughly the financial requirements and then apply for a particular loan amount.

Interest Rate

Leading private finance companies offer higher education loan with interest rate as low as 12.75 to 13% with a nominal processing fee of around 1-2% on the loan amount. Private lenders are more concerned and offer speedier loan approval process. They come up with unique and friendly solution for customers such as Pre-Visa Disbursement Loan, Pre-Admission Loan, Certificate of Availability of Funds, GRE score based loan, Bridge loan, fast-track loan etc. which cater exclusively to students' financial need and set them free from any form of obstacle in their path for career development.

Loan Repayment

For loan repayment, a window of around five to ten years is given to candidates. There is also a provision of the grace period for one year (or six months) after the completion of studies. Private firms come up with flexible repayment options such as EMI payment course, the Interest servicing during course & the partial interest servicing during course, EMI repayment Post-Holiday /Moratorium period and Step Up repayment facility. You can see which one fits you the best and decide the repayment as per your flexibility.

Experts say it would be better to live a sedentary lifestyle and opt for a part-time job to accumulate money for easy loan repayments. If you start making interest payment from the day you avail loan it will help you make easy repayments and save significantly on your loan amount.