Education is now one of the most expensive leisure you can have. Certainly, it is no less than luxury and unaffordable for many. Earlier, giving and sharing knowledge was seen as a noble cause and everyone used to do it for humanity but time has changed now. It is a form of business pure business. May or may not everyone seems agree to this but those poor children who lack money to study higher should be given aid. Perhaps, one can get student loan to study further in any prestigious college of India and outside India.
Here, in this article we will tell about everything you should know about student loan
Education loan is a good idea
Everyone aspire to become a successful person. Education is one way which can earn you respect and money both. But, in India education system has become costlier so one need much money for higher studies. For those, education loan can be very beneficial. The most amazing part of this loan is that it is a form of unsecured loan which means it doesn’t require anything as collateral. Just one has to present documents of admission in an UGC recognized university in banks to get loans. The loans are sanctioned according to the fees and expenses of colleges.
Education loan are expensive
It’s quite easy to avail these loans from bank but one should know that it is very expensive and difficult to procure. Most of the banks offer very high interest on the loans. It was earlier around 9 to 11 percent but increased to 12 to 15 in recent times. Also, for non working borrower, there must be a co-applicant for say father or any guardian. Loans above 5 lakhs need a guarantor other than co-applicant. It is best to have a good cibil score co applicant to maximize your chances of getting a loan.
Research about scope of your course
As we all know, there is stiff competition in the market for jobs. Some areas have numerous openings while some have limited job offers. One has to research about all the aspects before opting for specific course. Most of the universities and colleges advertise 100% placement and high salary job which in reality is not true. It is very necessary to know that as a fresher what your chances to earn are. With experience, you would certainly get increased packages but in starting you might face challenges and hence you may end up as a defaulter to bank.
Make payments on time
For a budding student, this loan may be your first deal with banks, but it will surely impact future credit needs. Not paying education loans might get you in trouble. It will ruin your chances to get any further loans such as car or home loans in future or in the worst scenarios you get into legal turmoil and collection agencies may come to your door.
Student loan is good option but may be not affordable for all. In that case one could get personal loans to fulfill their educational demands. This loan is also an unsecured form of loan and many banks offer good deal in these loans. Axis bank personal loans are most demanded followed by SBI loans and PNB loans.
