THINGS TO BE KEEP IN MIND WHILE APPLYING FOR EDUCATION LOAN

education loan

THINGS TO BE KEEP IN MIND WHILE APPLYING FOR EDUCATION LOAN

Here I am telling you the things to be keep in mind while applying for education Loan…

Education loan prove to be a boon for those students who dreams high, but cannot pay high. The one who get qualifying numbers as well as qualify the entrance exam but can not pay the high college fees.  To choose a right education loan for self is a huge matter to look after. Here is provided 7 things one should keep in mind while availing  EDUCATION LOAN :

 

  1. ARE YOU ELIGIBLE FOR LOAN :

If you are not earning at the time of taking loan, your parents/guardian can become co-applicant of the student loan. Co-applicants are even mandatory in  full time courses while your role will be like the primary debtor.

  1. DECIDE THE NUMBER OF AMOUNT YOU WANT TO BORROW :

Based on your course fee, determine how much amount you can generate from your savings to pay and how much amount you want to borrow from the bank as education loan.

  1. INTEREST RATES :

Do proper research and find out how much interest will be charged on your loan? And if the interest amount would remain same or change according to the market rate. Be satisfy with the Interest rates.

  1. DOWN PAYMENT:

It is the amount of money which needs to be paid at the time of receiving loan.the loan you take is according to the fees you need to pay to the college and if you are capable of giving it back in the fixed installments. Make sure that you can arrange Down Payment on time since down payment is given to the bank you are planning to take loan from.

  1. BORROW WITHIN YOUR LIMITS :

Your aim should always be to borrow loan within your capacity. Your capacity here means your ability to pay back the loan. All the EMIs in your name should not go beyond 20%-30% of your monthly income.

  1. TAKE LOANS FROM GOVERNMENT RECOGNIZED BANKS:

Under Sec 80-E of the Income Tax Act, education loans come with tax benefits. The candidates and parents can avail this only if the loan is taken from a private or government banks. So give a second thought to the Bank you have choosed.

  1. KEEPING COPIES OF LOAN :

All the students should definitely keep a record of all the copies received from banks related to education loan.

These are some tips one should keep in mind. If you want to know more about loans then click here .

Hope these tips would help you. Best of Luck .