The main focus of today’s times is on education; thus, students are putting their best foot forward in order to obtain higher studies from a premium institution. However, the costs of education have increased beyond the reach of a common man. Therefore, there are many students who are struggling to pursue higher education in the field of their choice- but now thanks to the education loans, students can heave a sigh of relief. There are many financial institutions such as banks and NBFCs (non-banking financial companies) that offer a study loan in India at much lower interest rates than the ones given out by traditional financiers and loan sharks.
However, there are a lot of financial institutions providing such loans; thus, we have compiled a list of factors that will help you to determine the best Study Loan in India, and they are here as follows:
- Interest rates: This is the first thing that you must consider while determining the best education loan in India. Interest rates are the additional amount of money that you have to repay to the financial institutions in exchange of the monetary assistance provided by them. The financial institutions even provide you with an education loan calculator on their online websites; thus, now you can easily calculate the interest rates on the basis of the principal amount and loan tenure opted by you. A good internet connection and an appropriate electronic device are the only things that you need to calculate the interest rates in India. The best Education Loan in India is the one that will provide you with financial assistance at the lowest possible interest rates.
- Processing fees and other charged: This is the one-time charge that you pay towards your application processing for an education loan. The financial institutions might even charge you with other fees in the form of prepayment charges and late-repayments charges as well as ECS failure charged.
- Repayment tenure: The best thing about opting for an education loan is that it covers all your study-related fees. Further, the repayment of an education loan is done in the flexible form of EMIs (equated monthly installments). This flexible repayment option helps you to plan out all your current as well as future repayments in advance- so that you never default on any of your payments to the financial institutions. However, the repayment tenure varies from one financial institution to another, and the best
- Study Loan in India will provide you with the tenure period of your choice.
- Collateral: The education loans offered by the financial institutions are generally unsecured in nature; however, the banks and NBFCs (non-banking financial companies) may demand collateral if the loan amount exceeds 50 lakh rupees. Thus, the best education loan will be the one that offers you with your desired principal amount at the lowest possible collateral.
- Margin amount: It is a myth that the financial institutions completely furnish your educational expenditures- there is an amount of money that you need to shell out from your pockets; this amount is known as the margin amount. Thus, the best study loan in India will be the one that asks the lowest margin amount from you.
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