The higher education expenses of your child in this
age of inflation can derail your savings planning. Make sure that you don’t
overburden yourself with those expenses and go for selling or mortgaging
properties. Education loan in today’s market is a common affair, with
increasing tuition fees and other education expenses and cost of living outside
home town and country, parents are opting for the education loan. A proper
education loan from a suitable financer can save you from succumbing to the
financial obstacle and giving up on the dreams of higher studies from a premium
institute and well deserved course in the country or abroad.
The key benefits of an ideal education loan are:
·
It bears the tuition fees &other education
expenses, fooding and living cost and in case of abroad studies it covers
portion of travel expense.
·
It opens up the opportunity for higher
studies from premium institutes and expensive courses.
·
Hassle-free academic tenure without the
burden of funds, helps in proper concentration on the studies.
·
Can start repayment of the loan amount
after completing the course and the moratorium period. Easing the debt burden.
With the aforesaid benefits, the aspirants can move
ahead to chase the dreams of higher studies. Now when you have decided to get a
home loan let’s discuss the basics of an education loan. There are many RBI
authorized financers in the market who are ready to fund your higher studies
but a proper online research from the aggregator sites can help you to choose a
suitable financer. Look for the disbursable loan amount, education loan
interest rates, loan repayment options, loan tenure and terms& conditions
of the financers.
Most of the financers give 80-90% of the proposed
loan amount; rest is paid by the borrower as margin money. However, there are
some non-banking financial companies which offer 100% of the proposed loan
amount. The next important factor that as a borrower you must consider is the education
loan interest rates. This amount is the extra amount you pay as interest cost
on the loan amount. The rate varies from 12-14% per annum on the loan amount.
It determines the EMIs you have to repay the financer for the whole tenure.
Some financers give concessions on the education
loan interest rates depending on the academic profile of the aspirants. To
motivate the female aspirants some financers give up to .05% concession on the
rate. You can choose between the floating and fixed rate of interest rate. No
matter whatever be the interest type try to reduce your loan tenure. Because it
will lessen the interest cost, though long terms offer lower EMIs but
stretching the term when you can prepay the loan amount before the loan term is
not feasible.
Educational loan can nurture the feel of
self-dependence in the aspirant, though the parent or guardian is the
guarantor/co-borrower but the aspirant is the borrower. This assimilates a
sense of responsibility in repaying the loan amount by establishing in life
sooner. So opting for an education loan is a smarter option.
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