Education Loan - The Key To A Successful Career

Posted by Shyamoli Shah on October 6th, 2016

Education is a very basic necessity just like food, water and clothing. Quality education can help an individual grow to unmatched heights in life and can make him/her a better person altogether. The importance of education and the ever so growing competition has caused the cost of education to rise high. Similarly, as a result of this, there are a lot of lenders that have arisen in the industry to cater to the needs of students who have bigger dreams but smaller pockets. For such students who wish to complete their higher studies without putting a financial burden on their parents, a wiser option would be availing an education loan.

Although, education is a never ending process. It begins with our birth and ends when we die. Everyday is a new learning, yet, these loan lenders require the borrower to fulfill certain criteria. The borrower must be 18 years and above, he/she must have an admission in the desired college/university prior to applying for the loan. Since it is an education loan, it is quite understood that the borrower would not have any long term source of income.Thus, he/she needs to have a co-applicant. A co-applicant can be anyone like the borrower’s parents or guardian, his/her siblings or spouse. The co-applicant should have a steady source of income and may be asked for his/her salary slips as a document proof. In addition, the student may have to produce his previous mark sheets, birth certificate, identity and address proof, etc. students with excellent academic record/performance may even qualify for special benefits such as lower interest rates and longer repayment tenure.

Education loan are categorized into different types like loans for MBA, medical, management studies, aviation & hospitality and a lot of other degree diploma courses. You can visit a relevant banking website to know more about available loans, its terms and conditions, hidden charges and other pros and cons of availing a loan. Generally, student loans don’t just cover the cost of the basic academic fees, but also help fund other related expenditures such as the cost of books, hostel and mess charges if any, cost of instruments/apparatus, library fees, application charges, and so on. Basically, there are two types of education loans, secured and unsecured student loans.

Secured student loans: It may take longer while for this category of loan to get sanctioned as it is a secured loan, has a lower rate of interest, requires collateral, and offers flexible repayment options, while in an unsecured loan the borrower does not have to produce any form of security since the rate of interest offered is higher as compared to secured loans.You as a borrower need to do some sort of research which can be either online or just by roaming around and visiting various lenders in the market. Make a list of all the queries that you have regarding the education loan before meeting a lender. The borrower can even fix an appointment with his parents with an expert finance advisor and or go for a personalized counselling session where you can get yourself updated with everything related to the type of loan that you wish to avail.

Source: http://youknowitbaby.com/article/18157/education_loan_the_key_to_a_successful_career.html