Higher Education Loan
50 Lakh rupees. That's how much Venkatesh paid to study from one of the prestigious universities abroad. And that was just the admission and tuition fee. Factor in the expenses for food, accommodation, travel, and other miscellaneous expenses, Venkatesh's entire cost for an MBA of two years came to a grand total of about 1 crore rupees.
An increasing number of Indian students are aspiring to pursue higher education abroad, or get into premier universities in India. Pursuing undergraduate and postgraduate degrees is no piece of cake, given the soaring costs of education. While on one hand, there are parents who save up for education costs of their children, or meritorious students getting scholarships, there are those who need a bit of a help. That's where education loans come in handy.
Education loans can seem like a blessing for worthy students. These kinds of loans provide the money for tuition expenses upfront, has lower interest rates as compared to a personal loan, and can be paid back after the student has started working. However, getting an education loan or paying it back is not as easy as it sounds.
Following are some of the factors you need to consider before applying for one.
• Education loans need guarantors/collateral security: Due to the large number of defaults over the years, most lenders require you to have some sort of collateral on hand. This makes it harder for students to get an education loan. in such a scenario, you can apply with parents as co-applicants to increase your chances of getting a loan.
Bonus tip: Make sure your parents check their credit scores before applying for a loan, as their poor credit history can hamper your chances of getting an approval.
• Research for the best student loan offering. Do not jump on the first loan offer made to you. Some lenders offer Education Loan approval letter, which is basically a pre-approved education loan -- even before students start applying to Universities. This is a major win since you can show the potential university that you have got funding.
• Keep in mind that all universities do not offer high salary placements, even though they project high placement percentages. The kind of degree you choose to pursue has the potential to spell your repayment track.
• An education loan is often the first line of credit that an individual applies for. This form the basis of his / her credit history. How you repay your current education loan will affect your future credit needs. Make sure you do not miss payments or default on your loan -- it will affect your chances of getting other loans in future say, for instance, a home loan.
How to Apply for an Education Loan
You can check your eligibility and apply for an education loan by signing up with CreditMantri. It is quick, simple and above all, free.
CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we pre-screen your application to make sure you are likely to qualify as per the lender's credit criteria. Hence, the chances of your home loan application getting approved are higher.
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