Gone are the days when a student backs out from their dream due to financial instability. With the changing times, education loan has become are solution provider for every aspirant who suffer from monetary crisis. Now banks are coming forward to with loan schemes which can be smoothly accessed. The rate of interest has also cut done from high to nominal which makes it more accessible in terms of return. This has resulted in strong competition among the banks to attract more number of students towards them.
Although the rate of interest is almost more or less the same of every financial body, the schemes which the provide under the loan is the matter which attracts the loan bearer. The time period or the loan structure may differ from bank to bank. The basic idea to choose the suitable bank for you is to compare at least four to five banks with your preferred one. The rate of interest always varies from time to time as per the instruction of Reserve Bank of India. So get updated with the changing rates.
If you are applying for an education loan, it is very important to state the detail of your structure. For this check the fee structure of the course you are opting. Then comes the other important charges along with it like hostel charges, mess charges and extra curriculum charges. Sometimes the loan bearer takes only fees structure amount as the loan and leave the rest out of it. Some include every required thing in the loan structure. So it is very important to bifurcate the amount of loan you want to take as per your need.
Then comes the part which is choose the banking institutes. Different banks, different schemes can make you confuse. So consult a knowledgeable person with that and compare few banks among themselves so as to know the best one which will be suited to you. It is important to see which bank is providing loan at lower rate of interest as 0.1 % difference can also make a huge difference in the overall amount which you are taking. Banks provide lower rate of interest to premier institutes of the country. For institutes like IITs and IIMs, you can have lower rate of interest.
The important part of the loan structure is the property or the replacement you are giving to the bank in equivalence to your loan amount. Make sure you have all the documents of the deposits you have made for the loan. Also it is equally important to pay the interest amount on time to avoid penalty charges. If the amount is not paid timely, it penalty charges can add to a huge sum of money which is unnecessarily an extra burden to you. So keep count on the dates till which you have pay the interest. Make sure you complete the payment in the given tenure because the loan amount not only uses simple interest but also adds compound interest to the principle amount.