Here are some mistakes to avoid during the education loan process.

Over the years, getting an education loan has become extremely easy. The education loan process has been greatly simplified due to the introduction of the internet. It has put good student loans at your fingertips, literally! All you have to do is reach for your phone, visit a lender’s website and submit your application. 

The next thing you know, a representative is at your doorstep to collect your documents and within a couple of days the loan is approved and sanctioned, superb right?  Just remember not to make the following mistakes when applying.

1. Not comparing.

Some student and parents go with a certain lender without seeing what others have to offer. This happens when others recommend a certain loan or the lender is their preferred banking/financial institute. But not comparing is a big mistake. You could missing out on a much better loan, one that matches your needs & requirements better, just because you failed to look at the other finance solutions available.

2. Not using calculators before applying.

This is another big no-no! Calculators give your borrowing decision a strong mathematical foundation. They ensure that you start your education loan process in a well prepared manner, and you know what they say about things that start well (they end well).

You can use the eligibility calculator to find the right loan amount to apply for. This will negate the chances of your application being denied and it will ensure your processing fee is put to good use instead of being lost with a rejected loan application. You can also use the EMI calculator to see if you can afford the EMIs of the said loan amount. You can adjust the tenures to find the right amount of time you need to repay the loan.

3. Not reading the terms and conditions.

Terms and conditions are important. Always go through them before you sign along the dotted line. Make sure you’ve checked everything at least detail at least once. If you have any doubts or concerns, get them ironed out before proceeding. Only once you’ve got a complete understand should you accept the approvals/sanctions.

4. Comparing only interest rates.

Some students and parents fixate themselves on the interest rates of the loan. Sure, getting a loan with a good interest rate is important but one must not ignore the other factors in the education loan process. You should for a loan that satisfies all your needs and offers features such as 100% finance, cover for all education-related expenses, collateral-free funding, quick turnaround time, higher loan amounts, lower processing fees & other charges, etc.

5. Not applying online.

Many students & parents still prefer going to a branch to apply. And while there’s probably nothing better than a face to face meeting, you should know that most lenders will also come home, all you have to do is register your interest online.

We hope this article will help you with a smooth borrowing process and ensures you get a happy loan experience. Good luck and all the best with your studies!