How to apply for education loan? – Studying in India or abroad is very difficult in financial terms even if one has got the parental and scholarship support. For those without access to either, student loans prove to be the saviour. Easily available and accessible student loans bring about a much-needed parity among those with privilege and those without. With study loans, students get an opportunity to pursue their education without regard to their financial situation. But only a few know how to apply for education loan.
However, before you apply for study loan, there are many considerations that one must take into account. With so many options to choose from, loan products could be confusing for the layman to simply dive into and decide.
The most common mistake that applicants commit is applying for a student loan amount equal to their academic fees, without considering the magnitude of the loan. Students are also often allured by pay later options of banks which enable students to repay the loan after completing education. These mistakes turn out to be very expensive for students in the long run. Thus, they should research well before applying for study loans. Remember ‘how to repay education loan’ is as important a question as ‘how to apply for education loan’.
Knowing the student loan interest rates and study loan requirement is one thing, but planning your finances is another. The planning process includes knowing more details about study loan EMIs and repayment norms. Students who wish to know, ‘how to apply for education loan’ need to know how much can they afford to pay every month and for how long they can choose to pay the same EMI.
Education loan estimation
Scholarships and fellowships offered by government bodies and private institutions
Fun fact: The education loan application process is perhaps the easiest process among all. Gathering the information about banks’ terms and conditions is a more painstaking task, compared to the application part. With the latest interventions of online platforms for student loan application, students now don’t need to visit the bank branch to get their loan sanctioned.
Still, some students choose to apply for education loans by a direct visit to the bank. Most students pursuing education abroad in need of financial assistance find this practice less rewarding. Considering the growing demand for online application, more banking institutions are introducing online features for the benefit of students. In either case (online/offline application) students are suggested to adhere to some basic principles for best results.
This application process is basically dependent on the call-back and communication services offered by the respective banking institution. Students have to either go through the comprehensive (shortened) offline process of application or they have to opt for a doorstep service for extra payment.
After this process, the study loan will be delivered to the applicant’s bank account via DBT (direct benefit transfer). Did you know that students can choose to apply for 3 different student loan schemes at one time to maximise their chances of securing the best services?
The application process for education loan experts is:-
Wait! The application process is not yet over. Among the students asking this riveting question of ‘how to apply for education loan’; most find themselves at the loss of post application information after starting their student loan. How to apply for education loan subsidies? How to apply for tax benefits available against study loan interest payments? The students who proceed with incomplete information about schemes like loan subsidies and tax benefits often fall into the situations like debt-trap
Also read: “Education Loan Interest Rate” for more details on study loan interest rate subsidies.
Student loan application process also involves gathering information about various aspects of banking and academic norms. Students with all the information about both these aspects are able to get the maximum benefits of student loans. Applicants and co-applicants can compare student loans based on following parameters to decide better. The answer to ‘how to apply for education loan’ lies in knowing the most and the knowing the latest!
Education loan norms keep changing regularly, and that’s the reason why most students have to rely on bank officials to provide them with the best information. With the increase in regulatory policies and transparency in loan schemes, students can now access the basic information required for study loan very easily without the intervention of the bank. Also, remember that study loans are not the only modes to finance education. Financial aid by scholarships for Indian students is also another viable option, perhaps a better one.
Education loan application involves a diligent effort to churn out maximum knowledge about all terms and conditions that banks can propose for any scheme. Applicants who are able to devote enough time and thought to this process are able to pursue education without any financial concerns; compared to others for whom student loan becomes a burden.
Remember before you sign the loan document- read the fine prints carefully and familiarise yourself with all the loan details so that there are no unpleasant surprises later.
If you still have any queries, you may write to us at email@example.com and we would be happy to help you out. Happy Learning!
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