How to choose the best education loan in India?

Read on to know how to choose the best education loan. The article will help you out in choosing the perfect educational loan for you or your child.

Availing education loans in India is not a nightmare anymore as majority of banks in India are providing easy educational loans to the Indian students. Although these loans are very easy to avail if you know how to choose an educational loan. Well, if you don't have much idea on how to select perfect loan for you or your college going son/daughter, you may feel it as herculean task. Here are the five most important points to consider before you take an educational loan from any bank.

Eligibility for educational loan

Although majority of the Indian courses and foreign country courses are eligible for getting an educational loan, it is strongly recommended that you should consider consulting the bank loan officials from which you want to avail the loan. By consulting the bank officials prior to applying for the course will make sure that you will have no trouble for getting the money from the bank. It will be a good step as you will get all exact details on educational loan offered by the bank. Also you will have the time to plan the future things accordingly. Even if you are not satisfied with the rate of interest offered by a particular bank, you have the option of going to various banks and check out their educational loan features. Analyse all the details in advance and then you can be free to choose the best education loan.

Check out Processing fees, tenure of the loan and moratorium

After choosing a course to join and deciding to avail educational loan for this, you need to go through the terms and conditions carefully. Know the processing fee of the educational loan you are about to avail well in advance. Also make sure that you get all deductions from the sanctioned loan amount in the form of various fees. Generally the tenure of repaying the educational loan varies from 3 years to 7 years.

Interest rates of educational loans

Third factor to consider before availing an educational loan is the interest rate of the loan. Here almost all banks give choice to the loan seekers to choose either fixed interest rate or floating interest rate for the loan. You can opt either one according to your convenience.

Pre-payment options of an educational loan

Other major factor to consider is to check for the pre-payment options for repaying the educational loan. It will be very much helpful to you in case you want to repay the outstanding loaned amount well before the completion of loan tenure. So it is always better to select an educational loan from a bank which offers good pre-payment options.

Documents required for availing educational loan

Final check you should do before availing educational loan is to check out the documents those are required by the bank. After knowing the list of documents, you can easily get ready all the papers in time so that you may have hassle free educational loan. Generally you need to have course admission letter along with the age certificate, income certificate, marks statement etc.


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