The rising cost of educational fees has caused a decline in interest in education courses. It results in many deserving students being unable to pay for high education costs. After spending all of their life’s accumulated wealth, the parents fail to provide financial support for their child’s education. Learn The benefits of Indian students taking out an education loan.
Nevertheless, financial assistance in loans offered by banks and NBFCs (non-banking financial companies) enables students to pursue their studies. The interest rates for these education loans from banks and non-bank financial companies are considerably lower than those for traditional loans. The online marketplace hosts some banks and NBFCs (non-banking financial companies) that offer education loans, so students can take advantage of this feature and compare education loans.
A loan for education has the following benefits:
• You can get a study loan for all your education costs, whether you are studying in India or abroad. Science, arts, commerce, MBAs (master’s of management studies), media, marketing, economics, engineering, and medicine are many subjects covered by study loans. In addition to college fees, tuition fees, living and travel expenses, along with all the other miscellaneous expenses, a student education loan covers these expenses.
• Students can take out study loans to finance their education, which protects their parents from spending up to their savings on jewelry, land, cash, etc.
• Students can plan their future payments due to the flexible repayment patterns provided by banks and non-banking financial companies. They can live risk-free life and plan their future accordingly. Students can also apply for a moratorium period granted to them by banks and non-banking financial companies (NBFCs) to find work. A student can’t repay the principal amount of the loan during the moratorium period, which can last from 6 months to one year. Instead, they can repay the compound interest on their loans.
• Financial institutions also offer education loans for students via the Internet. Therefore, using the online feature, students can easily access quick approvals, manage their accounts online, and not have to visit a branch. You can obtain all of your information securely and at your fingertips by using the online facilities.
Anyone can apply for a student loan, including:
• Everyone between 18 and 35 who resides in India can apply for education loans.
• Most banks and NBFCs (non-banking financial companies) also look at the students’ academic background, meaning that the financial institutions support only the ablest.
• One earning member of the Indian society must be willing to share the loan amount. They can be relatives, family members, parents, siblings, etc. A co-borrower will need to pay back the loan amount as the primary debtor.
If you wish to apply for a Student Education Loan, you must keep collateral on hand at the financial institution. Residential properties, life insurance policies, fixed deposits, and other non-agricultural assets may be used as collateral.