Here’s a look at how you can avail of an education loan with an easy interest rate.
Education in India and across the world, in general, is getting more expensive by the day. It is becoming increasingly difficult for students to afford quality education due to exorbitant college fees. Therefore, if you are looking to study at a prestigious institute in India or abroad, there are higher chances that you will need an education loan. Plus, there are several benefits of availing an education loan which include income tax benefits under section 80(E).
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But getting an education loan, especially a big one for studying abroad, can be quite tricky as education loans can prove to be expensive due to high rates of interest. When trying to secure an education loan, there are several factors that you need to keep in mind. These factors range from your credit history and the loan amount to the type of institution to which you’re planning to get admission.
Here’s a look at how you can avail of an education loan with an easy interest rate.
Maintaining a good credit score is a must if you want to avail of an education loan. Lenders always look at the credit score before they decide to give any kind of loan. A credit score is based on your lending and repayment history. So, if you have used credit cards or ever borrowed money from some type of financial institution, you already have a credit score. If you have a good credit score, then the lender is assured that you will pay back the education loan on time.
Choosing a reputable college or university is important before applying for an education loan. It is easier for the lender to trust a reputable institute. If you choose an institute which is less known or unheard of, then the lender might ask for high-value collateral or security against the loan.
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You must always research and compare different lenders to find those offering the lowest interest rates and favourable repayment terms.
Once you’ve chosen a lender, you must not be hesitant to negotiate for a lower interest rate or better repayment terms.
You should also consider a co-signer if you don’t have a strong credit history.
Following these tips will not only boost the chances of your getting approved but may also help you secure a lower interest rate.
