3 factors to keep in mind before taking an education loan in India

 


There are various factors that one has to think about when it comes to taking up an education loan in India. 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 education 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 before taking an education loan In India.

1.   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.


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