Understanding the application process for an education loan in India.

Imagine this, your college application has been accepted at the eleventh hour and you have to arrange the funds in a rush? Suffice to say that it will lead to absolute pandemonium. In such a situation, knowing how to go about the education loan application process could protect your from a chaotic and stressful experience. Keeping this in mind, the following article will highlight how the application process for education loan works.

Knowing your education loan amount - 

There’s obviously the college tuition, but besides this, if you are going to have to spend more, it is a good idea to include this amount in your loan. Your other expenses may include cost for course books, supplies, accommodation (if any). Another thing to keep in mind while calculating is that if the expense is not needed, then you should not include it. Like for example, if you don’t really need a new laptop, work it out and exclude that expense. This is borrowing more than need result in you paying interest on a loan amount you could have done without.

Approaching lenders - 

If you are waiting to hear from a college but know that you may need finances, you can always plan ahead. There is absolutely zero harm in comparing lenders, getting quotes, etc. You know the loan amount that you are looking for, just approach lenders and see how each one of them is willing to help. The best thing about a lot of lenders is that they are open to answering ALL your questions and doubts and also following-up if need be. By doing this, you will get a better perspective of which lender is more suiting to your needs.

Checking your eligibility before application -

If you want to cross-check if you’re eligible for an education loan, you can make use of the education loan eligibility calculator. Here you punch in a date like your monthly income, monthly expenses, an approximate interest rate, and tenure. Try out variations to find the one that you are looking for. This way you can apply for the education loan that you are eligible for. But keep in mind that it is always better to consult the lender beforehand. This is because you can always make some changes like having two co-borrowers or adding collateral. This can help get a decent interest rate as well.

Understanding the repayment - 

This part is basically figuring out how you will be repaying your education loan. This also means that you have to understand how your interest will be charged on your loan. Once you have understood this, you can then go ahead with planning your repayment strategy. So, if there is a need, you can get a part-time job to start paying early and finishing the repayment earlier on. This will give you a better perspective on how your repayment will go and how to stay on top of the EMIs to come.

Understanding education loan before signing the promissory note is very important. Because when you know better, you avoid the chances of being caught in a confusing education loan. So, clear your doubts beforehand and enjoy the benefits of a stress-free education loan!

Related Blog:- An Overview of Education Loan Calculator