Education is an integral part of individual's life.
It helps individual to attain good position and success in life. However, due
to the escalating education costs, it has become very difficult for parents to
finance their kid's educational dreams. Often, they have to compromise on their
career opportunities and then struggle in life ahead. Thanks to education loans
offered by leading banks and private finance companies that ensure you don't
fall short of money at any given point of time throughout your educational
career.
However, in spite of education loan being a fairly
well-versed concept there are some common myths associated with it:
Let's clear the cloud over the student loans in
India:
I have poor grades; I won't get an education loan.
Most average learning students feel since their
scores are not top-notch they can't go to reputed university and their career
at stake. They just leave the hope of financing the education dreams. However,
as long as you have someone to stand guarantee for your loan and you get a
confirmed admission, lenders especially private finance companies are willing
to fund your higher studies whether in India or abroad.
I topped to class; I don't need to secure a loan
You may have topped the class, must be popular in
college, secured a scholarship as well. But it won't guarantee that it will
finance your entire higher studies. Education costs are rising at an extremely
high inflation rate and it's more or less impossible to finance studies that
range anything between 5 to 50 lakhs. And if at all your scholarship falls
short you may have to refinance your studies by borrowing from friends, family
or traditional finance.
Study abroad is expensive I can't afford
Education costs are rising in steeply, In fact, even
the riches of the society have to think twice to send their kids abroad. It's
natural for average middle and upper-middle-class people it’s a herculean task.
However, relax leading private finance companies and banks are willing to
finance your dreams to study abroad and at lower interest rate costs. You can
plan your tuition and living costs accordingly and apply to an institute.
I don't have margin money; I would be able to
qualify for education loans
While it’s a mandate that most banks do demand
margin money costs to sanction the remaining loan amount, there are firms that
are ready to give 100% education finance. They are willing to cover your
tuition fees, living expenses, hotel and mess fee, study material costs, exam
fees, and travel costs. Thus, with such companies, your education dreams will
be always within your reach.
Just like any other
form of a loan, education loans are also evaluated on lot of parameters like
student's academic score, parent/guardian credit score, country,
university/institute, course, job or business prospects, etc. After a thorough
evaluation, they will sanction a particular loan amount and also an attractive
interest rate for you. Thanks to the advent of the internet you can now apply
for education loans online right from the cozy corners of your homes or
colleges. You can compare interest rate of leading providers, loan terms and
conditions, policies and other features. You can make an online application and
submit a scanned copy of the documentation. Within a day or two, you will get
the loan status.