Karan Vishwakarma
KF Rookie
What is Education loan for students? What is the procedure for education loan? What are the details should know before taking a education loan? And What are the scenario of Education loan policy.
Knowledge for Education Loan for Students.
- Thread starter Karan Vishwakarma
- Start date
To ensure a smooth education loan journey, Here are some tips that you should follow:
- Calculate the Total Loan: Understand the complete repayment amount, comprising the principal, interest rate, fees, and charges. Familiarize yourself with the loan's repayment terms to plan accordingly.
- Plan EMI: Set an EMI that aligns with your financial capabilities. You can opt for lower EMIs to extend the loan tenure or higher EMIs to shorten it. Adjust your EMI based on your income and affordability.
- Utilize Grace Period Wisely: Make the most of the grace period or repayment holiday feature, if applicable to your loan. Reducing interest payments during your study period can help lower your overall EMI.
- Avoid Defaults: Defaulting on education loans can harm your credit score and limit future loan opportunities. Plan your education loan carefully to minimize the risk of default. Consider having a co-borrower if needed.
- Clear Other Loans: Before taking on an education loan, prioritize paying off existing loans, especially those with high interest rates. Ensure your budget accommodates the new loan to prevent defaults.
- Gradual Repayment: Start repaying your education loan as you begin earning. Initially, you can pay a lower amount if your income is limited, and gradually increase your EMI payments as your salary grows.
- Maintain a Good Credit Score: A good credit score simplifies future loan approvals. Ensure timely education loan repayments to secure access to hassle-free loans down the road.
Do you require Education Loan for Undergraduation or Post Graduation? I had taken a Loan for my PG course and the process was very simple - at the start of my course, there were multiple banks that had visited our campus to offer Education Loan. We could compare offerings of all the Banks in one place.
Before finalising the Bank, these are the things you should check with them -
-How much amount are they willing to sanction?
-Tenure of Loan (higher the better).
-Interest Rate (Lower the better)
-Processing Fees (Lower the better)
-Pre Payment Charges (Ideally should be ZERO)
-Any other charges (Ideally should be ZERO)
प्रफूला_56
KF Expert
People say that if you take education loan, further you cannot avail other loans .What are your views about this.
arjungoyal12
KF Mentor
But you might be able to do it after you have repayed the education loan
प्रफूला_56
KF Expert
But why is it so that , other loans cannot be availed
arjungoyal12
KF Mentor
If you are studying, how can you pay other loans? I don't know the exact reason just finding it logical
प्रफूला_56
KF Expert
But loan is sanctioned on the parents name . What to do with the student.. though loan shows in the student cibil also.
Again with the parent cibil ,why can't they take other loan . What's harm in it
