Here are few tips to get a lower interest rate for education loan plans.

There are a lot of us who ponder over taking an education loan. Most worry that they are going to get stuck with a bad loan plan because of which they would face a lot of problems. This has been a major issue, as those that face trouble in paying their monthly installments take a hit on their credit scores.

This mostly happens due to the high interest rates that are applied to the education loan that we take. But since taking a loan is very important since our future depends on it, you should not back down from taking a loan. As far as the interest rates are concerned, there are ways in which you can play it smart and get a good interest rate for education loan plans.

Has this got your attention? Read on:

Compare between the various lenders -

Always keep in mind that you do not have to take a loan from the first lender that offers a loan plan to you. There are numerous lenders out there, and this gives you the upper hand as you can choose among those lenders that provide you with a good interest rate for education loan plans. Also, you do not necessarily have to take education loans from banks only, you can also check out the loan plans offered by NBFCs.

Provide collateral as security for the education loan -

Most students always try and look for lenders that do not require any collateral from their borrowers while providing education loans. Since there are many lenders to choose from, students find such loan providers easily. But if you want a lower interest rate for education loan plans, then you should provide collateral to the lender since you get a better loan amount at lower interest rates for education loans when you are providing security to the lender.

Maintain a good academic background -

If you show financial institutions that you have a strong academic background then they would want you to take an education loan from them. This is why they offer you a better loan plan with a bigger loan amount at a lower interest rate for education loan plans.

Choose a short loan tenure to repay the loan -

When choosing loan tenure, most students go for longer tenures since they find it easier and more relaxed to repay their education loans over a longer period of time. But if you are looking to get lower interest rates for education loan plans, then you should choose a shorter loan tenure. While the amounts you have to pay as monthly installments will be higher, you pay a lower interest rate for education loan EMIs. This is because you cut down on the installments.

Always keep a good credit score -

A good credit score can always be more helpful as financial institutions always review these scores before they give loans. When the lender sees that you have maintained a positive credit score, then you have a much better chance of getting a lower interest rate for education loan plans.

We hope this article has helped you, all the best!

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