How to select the right Education Loan for you?

As you pursue higher education, finding the right financial support is essential. Selecting a suitable Education Loan may feel challenging, but with the right information, it becomes straightforward. This article will guide you through interest rates, loan terms, and tax benefits, making the process easier to understand. Let's get started!

Factors to consider before opting for an Educational Loan

Understanding interest rates

The education loan interest rate is the first and most important thing you must examine when selecting one. Interest rates can either be fixed or floating. Fixed rates stay constant during the entire loan term and floating rates change according to the market scenario. Use Axis Bank Education Loan EMI Calculator to understand the total payable amount.

Repayment options

Look for loans that provide flexible repayment options. Most financial institutions offer a grace period after the course completion before the repayment begins. Certain options may offer the flexibility to pay only the simple interest on the amount disbursed during the course duration and initiate EMI (Equated Monthly Installment) payments after completing the study.

Loan disbursement

The mode of disbursal is a significant factor. Some banks directly disburse the Education Loan amount to the college or university, while others might give it to you. Ensure to check the disbursement procedure to avoid any last-minute surprises.

Co-application with guardians

A loan co-application with a parent or guardian can increase the loan amount eligibility. Moreover, it could lead to lower interest rates and longer repayment periods, providing financial breathing space.

Margin requirement

Some banks require a margin – a certain percentage of the total cost you need to pay. This can vary depending on the loan amount and the bank's policy. Confirm this detail before finalising your loan.

Considering additional charges

Remember to account for processing fees, prepayment charges, and penalties for late payment. These could add up and affect the total cost of your loan.

Course and college eligibility

Before applying, ensure your desired course and college are eligible for the loan. Generally, most banks cover a wide range of courses and universities, both domestic and overseas.

Also Read: [A complete guide on education loans for studying in the UK]

To sum up

Picking the right Education Loan is as crucial as choosing the right course. Thorough research and understanding are prerequisites before making such a pivotal decision.

Exploring offerings like the Axis Bank Education Loan can give you a clear perspective of what suits your requirements. An Education Loan should not only complement your educational journey, but it should also fit seamlessly into your financial landscape.

After all, your education is an investment, and like all suitable investments, it should come with calculated risks and estimated returns. A well-selected Education Loan tailored to your needs paves the path towards your bright future without worrying about financial burdens.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision