Lakhs of students opt for education loans in India every year. Suppose you wish to do the same to finance your higher studies abroad or in India. In that case, you should know the what’s and how’s of Education Loan and some essential steps to follow to know the what’s and how’s of Education Loan and essential steps to follow to select the right education loan and the repayment of which is easy on the pocket.
The right education loan and the repayment of which is easy on pocket Read on to learn the five steps that students must follow before finally choosing and applying for an education loan in India in 2023.
- Select your course and search for loans that can finance that course.
If you wish to study abroad, you must be sure about your course, its annual fees, and the education loans that can finance it. Even if you intend to pursue higher studies in India, you must know your college fees.
- Analyse education loan interest rates and use an EMI calculator
You must know about your loan’s repayment procedure before applying for it. You can gauge your affordability of an education loan by using an EMI (Equated Monthly Instalment) calculator. IDFC FIRST Bank’s education loan EMI calculator helps you know the value of your future EMIs. You can start planning for your future expenses by accounting for your loan’s repayment. Additionally, you must choose a loan with a low-interest rate. IDFC FIRST Bank offers an attractive annual interest rate.
- Select a bank and fill out its education loan application form
Once you have researched and selected your preferred bank, you can fill out the education loanapplication form. IDFC FIRST Bank offers one of the most accessible and affordable education loans in India. Students can access collateral-free loans worth up to ₹75 lakhs. To fill out its application form, visit the bank’s website
- Participate in a personal discussion with a bank executive
After the bank receives your application, it conducts a personal discussion with you. During this discussion, the bank intends to analyze your academic performance in the past, your overall academic record, and the details of the university to which you wish to apply.
- After selecting a bank, provide the required documents
The documents required might vary depending on the bank to which you have applied. However, along with your university’s admission certificate, you should also furnish your ID proof, address and age proof, and KYC (Know Your Customer) documents like Voter ID.
- Provide the documents needed after the loan’s disbursement
The bank will require you to furnish some documents after your loan’s disbursal too. You must submit a semester-wise academic progress report, a payment receipt copy of the previous semester, a disbursement request letter, and a copy of your Visa in case you are studying abroad. The bank might also require you to submit a copy of your SWIFT advice form.
following are the points that you should keep in mind while following the process and opting for your education.
- Consider Your Repayment Options
It is vital to carefully keep in mind the financial institution-offered repayment picks while choosing an educational loan. Different banks may additionally offer special compensation plans, inclusive of step-up compensation plans, bendy EMIs, and moratoria. Students may also put off mortgage payments for a hard and fast amount of time or until they’ve completed their education, thanks to a moratorium length. For students who need greater time to launch their jobs before beginning debt bills, this selection can be useful. However, thinking of the possible increase within the borrower’s income, flexible EMIs or step-up repayment plans permit for modest increases in EMIs over time. Students can pick out a loan that suits their economic state of affairs and destiny aspirations by way of being aware of those repayment possibilities.
- Check for Additional Charges and Processing Fees
While hobby quotes are critical attention when choosing an education loan, college students should additionally find out whether there are other fees or administrative prices worried. Processing costs, administrative fees, or prepayment consequences can be assessed via a few institutions. To prevent any unsightly surprises later, it’s miles imperative to be aware of those costs. Students can determine if a loan is cheap by evaluating the full price of numerous loans, which includes these extra expenses.
Applying for an education loan is a long procedure that requires a lot of analysis on the way. Be sure to visit your bank’s site and note all the documents that you will need while applying for the loan. Taking photocopies of your original documents in advance is also recommended.
