What are the Benefits of Education Loans?baljitsingh December 2, 2020
Are you planning to get higher education from a big institution, but, falling short of funds? Are you aspiring to establish a successful career learning from a top university, but don’t have sufficient resources? So, what are the possible alternatives to support your dream education? The answer is “Education Loan” which you can avail easily these days.
Well, it’s the harsh truth, but not many have financial backings to support their education and get enrolled in the best courses in commerce, science, arts or any desired field. However, through educational loans, getting the right quality of education is feasible. Moreover, taking an educational loan isn’t all that bad if you look at the fine prints.
Benefits of Education Loan
Here are some of the benefits you must look into:
1.Anyone can Apply for it
Educational loans can be availed of by anyone irrespective of gender, caste, or religion. Even age doesn’t matter. However, you will need an admission letter from the college/university for applying.
Banks have made it easier for students to repay the loan amount but give them some relaxation after completing their course. The relaxation period could be six months to one year, where they can find a job and start the repayment process.
Education loans can start anywhere from 50,000 rupees and go up to 20 lakh rupees. However, the interest, repayment structure would vary significantly on such occasions.
4.All Courses come under Purview of these Loans
Engineering, arts, sciences, humanities, social science, commerce, MBA, etc., all such courses some under-education loans and can be availed effortlessly for any of them.
Repayment of Education Loans
You might wonder why we are even promoting such things when the word “LOAN” itself screams trouble. If you look at it, in a way, students get a sense of responsibility while studying, build a career, and think to pay it off all by themselves without depending on others. It makes them responsible for their actions. That’s why you would have to think twice before taking one rather than think about the present and regret the future.
The repayment of the loans starts after six months or after one year of the course completion. You get this relaxation period where you can get a job or daily earning wages to clear off the loans. However, you can clear the loans between 5-7 years, but you can alter the timeline significantly depending upon the professional course, the credit score, and your income.
The higher the credit score, the lesser the interest, and vice versa. However, you might be thinking about what would happen if the student doesn’t pay the amount? Well, the credit scores of the student and his/her co-applicant get affected hard. After issuing multiple warnings, the bank can take legal action.
Many of you might think why take a loan in the first place. On a second thought, it’s not at all a bad idea where you get to pay off in instalments rather than a bulk payment.
You wish to pursue higher studies, do a specialization in MBA, or get admission in one of the top universities, education loan could come to your rescue. You can study, earn and start repaying your education loan alongside without any extra burden on yourself and your family. Does that sound more convincing? What do you feel?