Education… It is not just a word but it is the living standard of every human in the world. From kings to the poor panhandler, from the president to voters, the life of every person depends on the education they take. If we say taking good education to require a good amount of money then it would not be a false statement for developing countries like India where a huge number of persons are trying to get an education and which turned the education system into a money-making market. For providing education to their children parents spend a lot of money. Spending a huge amount on education is not possible for everyone but those who think of their children’s future are ready to do this in any way they get. One of the ways of this is taking a student loan for their children. Some tips which can be really important for the parents before going for the education loan with the lowest interest rate are necessary to have a safe and secure life in the future and to avoid any chances of fraud with them.
1. Decide For The Loan Amount
The person should be clear with the amount which they require for the education and for this they should have a proper analysis of the fee they need to pay in university or college. If they fail to take enough amount this can lead to a big problem for them.
2. Detailed Research Of Interest Rate Of The Loan
When a person is taking an education loan in India from any bank or finance company they should discuss properly with the interest rate of education loan the representative of the bank or the finance company from where they are taking a loan. A person should compare the interest rate of education loans as it varies from bank to bank.
3. Duration Of Loan
If we think, the Duration of students loan should be kept long as it will give you some time for managing the funds for paying installments and you need not worry about the huge amount of money in your pocket every time.
4. Look For A Certified Bank
Taking a loan from a certified bank instead of a finance company will provide you more security and in addition to this, you can avail of some extra benefits after taking an education loan from the certified bank. Under Section 80E of the Income Tax Act, you can avail of the benefits in the form of paying taxes to the government.
5. Try For The Maximum Amount Of Loan
There are some banks which provide loan for 100% expenses of the education for the student. You can manage the money for tuition fees, career counseling, hostel fees, new book charges, traveling charges by taking a good amount of loans. But when you take a loan amount that is above the limit then you may be asked for security which you need to provide to the bank.
6. Details Of Expenditure Of Money
When an applicant applies for an education loan in India he should be clear about the amount of tuition fee, hostel charges, and other charges he needs to pay during the studies so that he won’t face any problem during that time.
When an applicant applies for a student loan in India he should be clear about the amount of tuition fee, hostel charges, and other charges he needs to pay during the studies so that he won’t face any problem during that time.
7. Taking care of down payment
After any applicant takes the loan he should keep a proper check on the expenditure of the loan as when it comes to paying the down payment of the loan it is quite difficult to manage it and this can lead to a big problem for the loan taker as the bank can take legal action against him after not paying down payment in a particular time period.
8. Selecting a course for studies
Before taking a loan applicant must be sure about the course which he/she want to study as repayment of the loan is only possible if he gets a good job and this can only be possible if the applicant has chosen a course with a maximum number of job opportunities in the future and is able to provide a secured job in the market to repay the loan in form of installments.
9. Keeping a proper record
When the user takes a loan he should maintain a proper record of the document which are used while taking the loan. If the user fails to maintain the record then this can lead to big trouble for him. The lender can make him pay more by making changes in the documents he has with him and as the user does not have a document he can refuse or disagree with to the lender and the lender can do fraud with the user.
10. Pay attention to the timely payment
When it comes to repayment applicant must be aware of deadlines for the paying installments or down payment. If he fails to do so can lead to a big problem for him and as it is an education loan in India so it can lead to the problem with the degree of the course and completion of the course. So, the user must take care of the timely payment.
