3 factors to keep in mind when taking education loans
There are a lot of things that one has to think about when it comes to taking up education loans. It is essential for a student to choose a loan plan that they would be comfortable paying back.
Thorough and detailed research is a must before taking up any loan plan to understand its various terms and conditions. This is to be clear about crucial details like the tenure of the loan, interest rate, and monthly EMIs that the student will be paying. It is very essential to be specific about these aspects, as the interest rates on education loans depend on these factors as well.
Here are the important factors to keep in mind when you are planning on taking education loans.
Interest Rates
Always remember to check whether the education loan that is offered to you by a financial institution comes with a floating interest rate or fixed rate. This is because floating interest rates are always a bit cheaper as compared to fixed rates, and the loans that are offered on floating interest rates generally have a longer repayment period.
Some financial institutions offer you the option of repaying the interest amount right after the education loan is granted. This is a great option as this reduces your burden of repaying a giant amount.
Make sure to consider the calculations of the bank’s interest amount, and also check whether it is being calculated on a daily reducing balance or on a quarterly reducing balance.
Education loan EMI
This is by far the most important factor that you cannot afford to miss out on if you plan on taking education loans. Once you are done with finding out the interest rates of education loans in India, you need to plan whether the specific loan plan that you are being offered is viable for you or not.
Once you are granted the loan, the repayment process usually starts once you are done with the course. Also known as the moratorium period, where financial institutions grant you a little more time so that you can secure a job and collect the funds for repayment. Even though you have the provision of the moratorium period, it is advisable to start the repayment before you finish the course itself. This is because you can finish off the repayment of the loan which will later not be a burden for you.
To make sure that you don’t disturb your finances, it is best to calculate the funds beforehand so that you would have to pay for the education loan. This can be done with the help of an education loan calculator, which would take the details of the loan tenure, the interest rate, and the total loan amount. This would provide you with an estimation of how much you are supposed to pay.
. Repayment options
You need to make sure that you carefully enquire about the repayment plan that each financial institution has set. This is important as you should be comfortable with the plan so that your finances do not take a hit.
There are many study loans providers for students to choose from, so they do not have to worry about their options. Students should choose a provider that has a repayment plan which the student is comfortable with paying back. Also, students should check about the tenure of the moratorium period before the repayment period starts, as this gives them time to get a good job and start saving funds for the monthly EMIs.
We hope this article helps you.
Looking at the 5-step process to get an education loan to study in Australia
Australia is known for its exemplary education system as some of the best universities in the world are situated there. Students from all parts of the world flock to Australian universities to earn their graduate and postgraduate degrees. But educating oneself there is an expensive affair. Lenders offer educational loans for studying abroad to any student who wants to study there. In this article, we will tell you the 5-step process to get an education loan to study in Australia.
- Look at the eligibility criteria of different lenders
Check the education loan eligibility criteria of different lenders, and gather the documents that prove your eligibility for a loan to study in Australia. Use the education loan eligibility calculator to calculate the maximum loan amount you are eligible to get. Note that the result you will get from this calculator will be a speculative amount. Talk with a lender directly to know the actual maximum amount.
- Compare different lenders based on the services they provide
Read reviews about different lenders on the internet. Know the praises or complaints borrowers have from their education loan lenders. Based on those reviews, shortlist a few lenders. Ask those shortlisted lenders questions about the maximum education loan amount they will offer, the types of expenses they will cover, the interest rate they will charge, the moratorium period they will offer, the repayment tenure, and the EMI they will set.
- Compare lenders based on the value-added services they provide
Ask lenders whether they provide services like doorstep services, fast-track loan approval, proof of funds, pre-visa loans, pre-admission loans, or any other type of service you need. Understand the value-added services that you need to fund your higher education. Based on the answer to these questions, select the most suitable lender to get an education loan to study in Australia.
- Apply for an education loan
You have to fill an education loan application form. Either you can fill the form online: on the lender’s website; or offline: at the lender’s office. Correctly spell all the information you provide in the form. Finally, submit the form with all the relevant documents the lender asks you to provide.
The lender will verify your application and documents, and decide to either sanction your education loan or not.
- Finance your higher education in Australia
Once the loan has been approved, your lender will send the required course semester fees to your university of choice. You also need to open a bank account in a local Australian bank and deposit the loan money for living expenses in Australia for a year in that bank account. Remember to spend wisely, take up a part-time job if possible, and save up money so you can repay your loan easily when the time comes.
So, this is the 5-step process to get an education loan to study in Australia. Hope that this information has proved useful for you today. Have a nice day!
4 tips to get economical educational loan for MBA studies
MBA degree is a key to a strong presence in the business administration field. It helps students learn the skills of handling an enterprise, and thus, moulds them into business administration professionals who sustain the growth of small and large businesses alike. But pursuing an MBA is expensive. Many students do not have money to fund their MBA education expenses. Financial lenders offer education loans to such students. Students, if they negotiate properly, can get affordable deals on these education loans. In this article, we will tell you the 4 tips to get an economical educational loan for MBA studies.
Estimate the education-related expenses carefully
Do your homework carefully while getting an educational loan for MBA studies. Calculate your MBA education expenses to the last penny. Know the tuition fees of your whole course. If you have to relocate to the city where your MBA institute is based, then calculate the expenses you would incur when you travel to that city, lodge and board in that city for the duration of your MBA course. Also calculate the mess expenses, the exam fee, the library fee, the laboratory fee, stationery and books expenses, laptop expenses, and so on. Once you calculate these expenses, you will be in a better position to negotiate the most economical education loan deal for your MBA studies.
Compare the different education loan schemes of different lenders
Financial lenders offer two different types of education loans to students who want to earn an MBA degree. If the student is admitted into a premier MBA educational institute, then the lender offers an education loan of high principal amount levied with lower interest rates than usual. If the student is admitted into an average MBA college, then the lender offers an education loan with average principal amount and interest rate. These are the two protocols lenders put into effect while funding a student’s MBA education. Compare different lenders and choose the one that offers the best deal on an educational loan for MBA studies.
Pay the interest levied during the course period
As soon as the education loan amount is disbursed to the student, the interest clock starts ticking, and the interest is levied on the total disbursed amount of the education loan. Get a part-time job, like become an assistant to a university professor, earn money through that job, and repay the interest levied on an education loan during the course period itself. This will help you save a considerable amount of money while repaying the education loan in the long run.
Ask for shorter repayment tenure
Financial lenders talk with students before setting the education loan repayment tenure into place. In this interaction, you should opt for a shorter repayment tenure. By doing this, you save a fortune while repaying your MBA study loan. But ask the lender to set the EMI value of the repayment tenure such that the EMI is well within your reach financially every month.
So, these are the 4 tips to get an economical educational loan for MBA studies. All the best!
4 life-altering benefits of study loans
Study loans have helped millions of students to pay their higher education fees and other related expenses to earn a degree and become successful in their careers. But education loans provide one more benefit for students to not only learn their trades but also financial responsibility to sustain their lives on the financial front. And since study loans have become much more accessible, lenders have given opportunities to scores of students to complete their higher education. In this article, we will talk about the 4 life-altering benefits that study loans provide.
Safeguards you from inflation while you fund your higher education
Some students choose to save money from their earnings and thus, gather funds to study the courses of their choice at reputed educational institutions. This is an outdated and insignificant tactic. Due to inflation, the cost of higher education increases with time. Just saving money to fund higher education is worthless. In such a situation, study loans help. They fund every aspect of your higher studies; from course tuition fees to living, travelling, mess and other expenses. They also provide you 100% financing without the need to pay margin money from your pocket.
Saves your wealth for contingencies
In case, you decide to fund your higher studies from your pocket, you may need to pay from your savings, which to be honest, cannot suffice the costs of higher education in today’s time. Or you may need to liquidate your financial assets to fund your higher education. Study loans are a better choice in this regard. They save you from using up your assets, and saves those assets to be used in emergency medical, financial or social contingencies. In short, you save your wealth to help yourself in your tough times.
Teaches financial responsibility
When you begin to repay your study loan through timely EMIs, you learn the most valuable financial skill: the skill of repaying debts. You learn to manage your monthly income, your expenses, and your study loan instalments in a dignified fashion. In short, you learn to be a financially responsible citizen. This repayment experience also teaches you skills to repay other loans if you take them in the future. For instance, the financial habit to manage your money while repaying your car or bike loan.
Gives a chance to build a strong credit score
When you clear off your education loans gradually through EMIs paid on time every month, you build an awesome credit score and credit history. This credit score will be awesome enough to help you get better deals on your future loans. With a good credit score, you will get loans with lesser interest rates levied on them, with higher principal amount, and with attractive processing fees. So, a good credit score will help you buy a house or a vehicle at deals most suitable for you.
So, these are the 4 life-altering benefits of study loans. We hope that now you know how such loans will not only help your academic aspirations financially but also help you to gain financial maturity. All the best!
For more details - 4 benefits of unsecured education loans
Looking at 5 FAQs on Executive Education Loan
In the last few years, the demand for an MBA degree has increased alongside its value. Nowadays, it is preferred not just by graduate students but also by working professionals who are looking to take a step ahead in their career. However, this increase in demand and value has also led to a rise in the cost of MBA education. For those aspirants who are unable to bear these costs, the best option is to get an education loan that is specifically catered towards them. Such loans are called executive education loans. In case you are planning to take a loan for your MBA plans, getting your basic queries cleared first is important.
In this article, we are looking at 5 FAQs on executive education loans that will provide a clearer picture to you and all the MBA aspirants out there.
#1- What are the eligibility criteria to apply for an executive education loan?
To be eligible for an executive education loan, you would need to -
- An Indian citizen
- Over 18 years of age
- Have passed the academic standards set by the lender
- Have a confirmed admission at the university of your choice
- Have a co-borrower residing in India
The eligibility criteria may vary slightly between different lenders.
#2 - What expenses will be covered by an executive education loan?
If you take your MBA loan from a reliable lender, you will get financing for several expenses that will occur during your studies. Along with the course fees, the costs of accommodation, travel, flight tickets, study material, laptop, and so on will also be covered.
Many lenders even provide pre-admission loans, which can help fund the expenses required before the admission process such as entrance exam fees, admission application fees, and so on.
#3 - Are executive education loans available without collateral?
Yes, you can get a loan for an MBA without having to provide any collateral. There are many financial institutions, especially NBFCs, that provide unsecured executive education loans.
#4 - What is the upper limit for most executive education loans?
There is no limit to your aspirations, so why should there be an upper limit on the loan that is going to take you there? Studying for an MBA can get costly in India and even more so if you are planning to do it abroad. Therefore, many lenders do not have a capping on the loan amount they are willing to lend you as long as you meet all their requirements.
#5 - How does the loan process for an executive education loan usually go?
Though the loan application procedure may have many minor steps here and there, the basic process will be like this-
-Reach out to your lender and provide the relevant details. You may have to give a personal interview where you will be asked questions regarding your academic records, your performance, selection of course and university, and so on.
- Fill in the loan application form, provide details regarding your course, and submit along with the required documents.
- If you are opting for a secured study loan, then you may have to provide the collateral documents at this stage.
- Based on the information collected, the lender will structure a loan that meets your needs.
- Once you have accepted the loan offer, you may submit it along with the required paperwork. If all goes well, your university will receive the course fees directly, while the amount for the other expenses will be transferred to your account.
Do bear in mind that the loan application procedure as well as several other features of an executive education loan will differ from lender to lender.
5 Things to Remember While Planning Your Education Loan For Australia
Australia is one of the most favoured international study destinations. With world-class universities and educators, an excellent standard of living, and the occasional koala, the land Down Under offers an experience like no other.
If you are planning to study abroad in Australia, you would know that it can be a costly affair. An education loan would be helpful in such a scenario by providing funds needed for your college plans. These education loans for Australia are offered by several banks and NBFCs in India. These lenders offer funding that will take care of several expenses involved when you opt to study in a foreign country.
Now, the specifics of education loans and their overall terms can vary between lenders. So, it is important that you choose a financer who best suits your unique requirements. To make sure you choose the right education loan for Australia, it is important to remember these 5 things.
- Consider an unsecured loan
If you choose a secured education loan for Australia, you (or your parents) will have to provide some sort of security to the bank, such as your personal assets. Not every student has some sort of security to pledge. So, if you too don’t have any collateral, don’t worry. You may choose your lender among the banks and NBFCs that provide unsecured loans as well. Choosing an unsecured loan will relieve you of the worry of providing your assets to the lender.
- Review the repayment terms and duration
When you take an education loan for Australia, it is important that you pay attention to the repayment policy and terms of the lender. Banks and NBFCs have varying repayment terms. Choose the lender with the best repayment terms. You should also consider that longer tenures have more interest. Also, make sure you calculate your EMIs beforehand as doing so will immensely help you structure your repayment plan.
- Check the processing fees
While applying for an education loan, an important point you should keep in mind is the processing fee charged by the lender. This fee is paid during the loan application process and differs from lender to lender. Make sure you choose an education loan that provides you the best deal when it comes to the processing fees.
- Choose the right course
Opting for a job-oriented course will highly increase your prospects of landing the education loan you want. A job-oriented degree, like an MBA or engineering course, increases the future income potential of the student. This provides banks with a certain sense of assurance when it comes to repayment.
- Keep track of dates
The admission process for studying in Australia usually begins in June-July and may continue for the next few months. Ensure that everything is on track and that you apply for your education loan for Australia in due time. Do your research beforehand so that when the dates come nearer, the entire process becomes smoother.
Good luck!
Related Article - A quick look at the process for an education loan for Australia
3 tips to consider if you are planning to take an education loan
It is the dream of many students to study in a reputed college and build a strong career. But they often back out looking at the high university fees and the cost of living in a foreign land. If you too are concerned about the finances involved in affording higher education, don’t worry. Simply take an education loan and follow your dreams of attending a foreign university.
Now, getting a student loan is relatively easier these days due to the availability of many options of financing from banks and financial institutions. However, taking an education loan requires meticulous planning. Also with so many options to choose from, you may end up getting confused where and how to begin selecting an education loan that fits your course cost and repayment capacity. To lessen your work and ease out the loan selection procedure, here are 3 tips to consider while planning to take an education loan.
- Decide the principal amount
First, decide how much money you can pay from your savings account towards your course fees and other expenses. This will help you understand how much you will need to borrow from the bank or financial institution. Study loans not only cover tuition fees but also living expenses while you study abroad so, you must prepare a thorough schedule of costs that you will incur. These expenses could include accommodation, travel, groceries, food, study materials, laptops, and so on.
- Pay attention to interest rates
Interest rates may vary a little between different banks and financial institutions. However, even if the difference is minor, the interest rate will still have a huge impact on the overall repayable loan amount. This is why it is better to look for lenders who provide loans at low-interest rates. Speaking of interest rates, it is also important for students to consider whether they wish to take a floating rate loan or a fixed-rate loan. The interest rate will significantly impact the EMI payable towards your loan after you finish your course. So, make a careful decision on this matter. Get professional advice on choosing the interest rate, if required.
- Choose the loan tenure wisely
A student needs to choose their loan tenure wisely. Depending on your loan amount and repayment capacity, you can select the loan repayment period. If you decide to go with a longer tenure, your monthly EMIs will reduce; however, the amount of interest that you will have to pay on your education loan will increase. This will increase your overall loan repayment amount. It is thus, advisable to go for a shorter tenure to repay your education loan so that you can clear your debt faster. Your monthly EMI will be comparatively more but your overall cost will reduce. But do decide upon your loan tenure depending on your financial capacity. Your salary should be enough to cover payments.
Hope this article has been useful to you and helps you in selecting an education loan that best suits you.
All the best!
Related Article - Here are 7 Tips to Get the Best Education Loan (auxilo)
