With increasing competition, most students who dream of studying at higher-level universities need to take credit or a student education loan. In earlier times, most parents were bound to liquidate property, gold, and fixed assets to finance their child’s education.
Nowadays, parents have accepted the paradigm shift of using a flexi personal loan to pay for their children’s education. And this is so because nowadays, most parents and students are well aware of the benefits that come along with the student education loan. They now prefer education loans over personal loans for education purposes.
Why must one take a student education loan?
Almost every parent these days prioritizes their children’s education over anything else. Using family funds, borrowing from friends and relatives, funding from assets, and to apply for personal loan are all typical ways to support your child’s higher education. Previously, it was known that only middle-income groups used education loans to help their children.
Several affluent families now prefer taking education loans for instant money with its advantages coming to light and specialists giving doorstep services like-
- The opportunity for financial responsibilities for students
- Preserving family funds
- Building a good credit score and history
- Convenient repayment options
- Wide range of expenses being covered
- No loan burden
- Pursuing dream course in a good college
Anyone with a good cibil score can apply for a loan, as quality education is crucial for every aspiring student. Any student can avail of an education loan with their parent’s assistance.
Benefits of student education loans –
- Available for all – any student can apply for a student education loan, and even the unprivileged sections of society can avail of these loans.
- Applicable for every course – graduation, post-graduation, vocational, and certificate courses in India- falls under this category.
- Readily available – education loans are easily available and convenient to obtain and then a priority loan in all banks per the guidelines of RBI.
- Different loan amounts – several banks or NBFCs offer loans anywhere for studying in India. The loan size ultimately depends on the course, college, and financial institution applied for.
- Helps to complete education – with inflation and fluctuating cost, education costs are also increasing. Student education loans are significant for avoiding academic setbacks.
- Benefit – education loans come with extra perks like covering library fees, laboratory fees, tuition examination courses, hostel fees, money for Books, instruments, uniforms, and travel expenses.
- Repayment – a significant advantage that comes along with student education. Loans are the loan amount supporters provide easy repayment options.
Conditions for applying for a student education loan. There are a few basic requirements that should be made while you apply for a student education loan –
- The rate of interest is provided by various criteria, including the loan amount requested, the type of student loan, the loan tenure, the students, future cash inflow, and loan repayment history.
- You can only apply for a student education loan with a co-applicant who can be your parent or a guardian.
- The maximum loan amount for a student is determined and made available based on the type of course, eligibility conditions, credit, worthiness, and loan payback history.
- The loan payment tenure period is determined based on the loan amount, course, duration, and EMI amount.