Benefits of education loan in India

Posted by Shyamoli Shah on August 30th, 2016

There is a major growth in competition, which has given importance of quality education for students. An education loan comes to the rescue of students wanting to pursue further studies without bothering their parents or asking them for any financial help.Just like millions of other things, you can now apply for a student loan online. Availing an education loan in India has become very common among students these days due to the sky high fees demanded by universities for pursuing higher studies.

Unlike olden days, students have stopped skipping their studies because of financial restrain. All thanks to the easy access to the internet and low interest rates offered by some of the leading firms, aspiring students can apply online for education loanin India with minimum documentation and least efforts. India has a very flexible education system. Students from all over the world choose India to continue their further studies as it has excelled in standards of quality teaching. Also, you can find top notch education institutes in India with huge infrastructure and expert/well trained faculties. Although, good colleges demand high fees, they offer high job placement as well. Thus, it becomes easy to repay education loan after completion of the course. A few job oriented courses that offer high remuneration and placement in our country as well as abroad, include, medical science, engineering, literature, alternate healing, psychology, management studies etc.

These new age courses require a good amount of funding. Age old methods of generating instant capital have also started to lose their charm due to the emergence of education loan in Indiawith low rate of interest.Traditional ways are reliable, tried and tested, but they do not offer flexible repayment options. While availing student loans from private finance firms, students get to enjoy a lot of benefits, including holiday period, low interest rates and flexible payment methods.

• Holiday period: From the time the loan gets disbursed, till the completion of the course is referred as holiday period. After this period the borrower has to begin paying his EMIs. Some firms offer an additional period of 6 to 12 months after the course completion. This extra time is given to the student, so that he can obtain employment. The principal sum has to be paid in the form of monthly installments, once the holiday period finishes. As per his/her convenience and the availability of funds, the borrower can begin EMIs during the holiday period itself.
  
• Low interest rates: There is no fixed ratio, when it comes to ROI (rate of interest). It varies depending on a lot of factors such as the firm, whether it is a private firm or a government firm, the amount of loan availed, type of loan, such as car loan, home loan, education loan in India etc. Interest rates are subjective, yet there are a few private firms which offer student loans with interest rates as low as 12.75% and a processing fee of mere 1-2%.
• Flexible payment: Borrowerscan start repaying after the holiday period or even during the holiday period. The principal sum of the loan availed,is divided in easy monthly installments after calculating the interest rate.