Find reliable resources for an education loan

Posted by Neetarao on September 20th, 2016

People who wish to go for higher studies, but cannot afford it can any day avail an education loan. It covers the entire course expenses and is usually disbursed directly to the university’s account. These finances also cover most of the travel and accommodation charges that take place at the time of pursuing the course.

Eligibility criteria

The person taking up the loan should have a secure admission prior to applying for the loan. The course of study or the chosen college should be recognized by UGC and other recognized statutory bodies. The borrower must be an Indian citizen and should be 18 years or above.

Courses covered

Education loans can be availed for all undergraduate, graduate and post graduate courses conducted by reputed institutions recognized by UGC/ICMR/AICTE/AIBMS, etc. These loans are also provided for degree and diploma courses that lead to employment. Postgraduates looking for better opportunities can also avail a loan to opt for courses conducted by reputed universities.

Documents required

Essential documents such as address proof, identity proof, mark sheets of the last qualified examination, income proof of the co-applicant will be required to be submitted online or handed over to the lender. The bank will verify the documents and then inform the borrower via email or text message.

Collateral & collateral free loans

Secured loans require a collateral security in the form of property papers, LIC insurance, valuables such as ornaments, etc. Until you pay the entire amount in full, the collateral will be held by the lender. A secured loan will have a comparatively longer repayment tenure than unsecured loans. Also, you get a very reasonable rate of interest. The lender can take possession of the collateral when the borrower does not pay or fails to pay the loan within the given repayment tenure. Unsecured loans, on the other hand, do not require any kind of security or assets, it has sky high interest rates and a very less amount of time is offered to repay the debt. Under an unsecured loan, when the borrower does not repay on time, the lender cannot, in any way take charge of his property. A secured education loan is easy to obtain and involves less risk for the lender. The borrower may end up losing his assets when he fails to make timely payments of the amount back to the lending body. Due to the involvement of collateral, the borrowing limit on secured loans is higher than that in unsecured loans.

Experts always advice to choose secure loans to enjoy lower interest rates and longer repayment tenure.

Not all but certain banks will offer you the with suitable and best interest rates, so make sure to do a well researched comparison before concluding or closing the deal. Do not rush into lenders that claim to provide the best, instead keep your options ready in case the first doesn’t meet your requirements, you can always opt from the other alternatives. This step needs to be taken merely as a precaution, just in case, your loan application gets rejected from your previous preference. To obtain the best education loan, you will firstly have to meet all the requirements of the lending body.