How to curb down your interest rates on education loan?
Posted by Shyamoli Shah on December 21st, 2016
The cost of education has increased steeply over the years. Parents are often worried on how to finance the studies for their children, especially higher studies. The traditional finance comes at an extremely high-interest rate and stringent payment measure. Borrowing from friend or family carries a fear of creating a rift in the relation. The best way to manage finance in this era of highly inflation economy and rising education costs would be taking a suitable education loan. There is a variety of sources from where a student can take a study loan. However, there are many aspects that students and parents should take a note off before signing the agreement with any financial institution. One the major element that draws attention is an educational loan interest rate.
A student loan is a long term affair so it becomes extremely important to avail loan at lower interest rate. It helps reduce the burden during the repayment process. For most students who are not able to land a high-paying job right after graduation, it proves to be light to them in their pockets. A low education loan interest rate can ease their monthly burden. There are some leading private finance companies who offer Education Loans with interest rate as low as 12.75% and the processing fee is mere 1-2% of the loan amount being calculated on a case-to-case basis. They design study loans without setting any cap on finance and provide 100% coverage of education costs, making such young talents of India free from unnecessary burdens. Interest plays a huge role in the repayment process. Sometimes a student cannot afford the education loan interest charged. So, try to ensure that the education loan you get is at an affordable interest rate.
Whenever you wish to take a student loan the first thing that runs through your mind would be how much loan should you take? What will be the interest rate? What is the tenure? How to repay loans? Etc. Often parents and students are left baffled because of these questions hindering their minds. Banks and leading private finance firms have also introduced education loan interest rate calculators that help you resolve all your concerns under one go. From interest rates to premium set, tenure to the principal amount, repayment options, and interest applied everything can be answered through these calculators.
Low-interest rates for study loans are when they apply for overseas education. A small reduction can help them save from making a definitely an easy breather for a student especially big hole from your pockets.
Finance companies work hard to ensure students applying for education are able to fully concentrate on studies and not worry about expenses related to the course, food, travel and accommodation while studying. They offer 100% finance to students who wish to study in India or foreign university with no margin money or down payment expected from them. It is advisable before applying for loan students should understand it in terms of fund allocated, an expense covered, and the education loan interest rate applicable, discount or concession available, tenure for loan clearance, repayment options, strategy for repayments and other costs they’ll have to incur on their own.
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About the AuthorShyamoli Shah
Joined: August 26th, 2016
Articles Posted: 61
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