Tips to achieve lower education loan interest rates

Posted by Shyamoli Shah on October 21st, 2016

Various types of student loans are offered by government as well as private banks and financiers.It is a pain staking task any given day to find out the best lender.A smart borrower is the one who makes a smart choice by opting for a source that best fits his requirements without being too heavy on his pockets. To become a smart borrower, and getting your hands on some of the best Educational Loan Interest Rate, you need to adapt certain habits like:

Pay a little extra whenever you can

While some months you can pay more, some months you pay less. That is a common scenario for every household in our country. Whether you fall under a lower income group or are an income tax payer, the cycle of tough and good days will never come to an end. So take advantage of the phase when life is easy and not so harsh on you. Save for your repayments when life is easy. This will help you with swift repayments without any delay. Repayment can be a real headache if you do not cultivate the habit of pre paying when you can. Prepayments not just shed your financial debt but also put you in a positive light in front of the lender as well as in your credit score. Saving is the key to keep you away from financial trouble.

Seek for help at the right time

People with higher education loan interest rates should definitely cultivate this habit. Although, there are various types of loans available for defaulters, no lender likes to entertain borrowers with a bad credit history. So, only if you think you will be able to make timely repayments of the education loan interest, you should take up an education loan. Be prepared with the EMI amount prior to the estimated date of repayment.

Choose the right repayment mode/option

Most of the students have no clue about the repayment plans available before they borrow the loan. No matter what type of loan you avail, repayment has to be done within the given frame of time. With the right repayment structure, you can easily maintain a balance between your budget and the monthly installments. The repayment of a student loan usually begins after the course gets completed. Some of the leading private lenders also offer a grace period of 6 to 12 months other than the duration of the course. So along with managing the monthly expenses, the borrower should learn to organize his/her income in order to pay the EMIs. Select a repayment pattern that you would be able to maintain till the end of the entire repayment tenure. Assessing your repayment structure from time to time will help in gaining the necessary support to make the repayments.

Borrowing money in itself is a huge decision and when it comes to availing an education loan interest it needs to be done very carefully. A borrower should be confident enough as to whether he will be able to make the repayments or not.Your earning potential and your lifestyle all have to be taken into consideration in order to find out the amount that will be left with you at the end of the day.

Source: https://tackk.com/tips-to-achieve-lower-education-loan-interest-rates