Several factors go into getting an education loan. These include eligibility, documents required for an education loan, types of loans, etc. The article discusses various factors so that you can prepare for the application in advance
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Once you have decided to pursue higher studies, there is no looking back. However, pursuing your dream career without an education loan may be difficult owing to financial constraints.. It is normal to feel anxious at times like these. Not having a clear idea or information about how to get an education loan, and everything related to it can be overwhelming.
During such situations, stay calm and take baby steps towards understanding the process. The first step is considering key factors before opting for an education loan. Let us see what they are.
What to consider before applying for an education loan
Before applying for an education loan, there are certain things one should be aware of to make better financial decisions, avoid oversight and be well-prepared.
- Total cost of education – When calculating the total cost of education, calculate expenses like – tuition, purchase of books, projects, accommodation and living costs. This would help you determine the loan amount accurately.
- Interest rates– When evaluating all loan options, it is important to evaluate the education loan interest rates. This would help you estimate the repayment amount. Compare different banks, lenders, and options before coming to a decision.
- Calculate your EMI – It is best to calculate your EMI in advance before taking an education loan. It helps you set your financial goals and budget yourself better. You can use IDFC FIRST Bank Education Loan EMI calculatorsto make these calculations beforehand.
- Type of loan– Applicants can choose between secured and unsecured loans.
- Secured loans – They are usually taken against collateral like FD, property, etc.andcan be obtained with lower interest rates.
- Unsecured loans-They can be taken without collateral but come with higher interest rates. IDFC FIRST Bank provides collateral-free loans of up to Rs 50 lakhs which can help you get closer to achieving your dreams.
- Repayment options– Carefully evaluate your financial goals and repayment options. Consider the timeline, ways of repayment and financial standing, and income and make decisions accordingly.
- Scholarships– Always consider applying for scholarships before you opt for a loan. This could reduce your loan amount and open doors to some great opportunities.
These points are key points that anyone wondering how to get an education loan should consider before proceeding.
Things NRIs should consider before getting an education loan
As an NRI, you must consider a few things before applying for an education loan -
- Loan options – You could opt for a loan from India or abroad. Compare and evaluate your options carefully. This should include the process, terms and documents required to get an education loan.
- Eligibility – Know your education loan eligibility criteria and adhere to them before you get an education loan. They are:
- The applicant should be an Indian citizen
- The minimum age of the applicant must be 18 years
- The student must be selected into a renowned university with a full-time program and have proof of admission
- Power of Attorney (POA) must be made
Co-applicants - Students apply for the education loan with a co-applicant who can be parents or guardians. The co-applicant should be a resident of India & co-applicant’s income plays an important role in education loan approval, as per the lending institution’s policy.
Documents required – Make sure you know all the documents required for an education loan. These include identity proof, age proof, admission proof, income proof, etc. as applicable as per the lending institution’s policy
Summing it up
Education loans may seem like a lot, but with the right approach, you can handle it like a pro. And within no time, you would be off to pursue your dreams. Knowing how to get an education loan, pre-planning your loan amount, your education interest rates, and other processes make it easier to tackle the loan in the long run. And for all other necessities and a helping hand, you can reach out to IDFC FIRST Bank.
IDFC FIRST Bank funds 25k+ courses globally across 3200+ universities to date. IDFC FIRST Bank Education Loans provides faster loan sanctions with a seamless application process and competitive interest rates starting at 9%* p.a. to help you prepare for one of the most productive phases of your life worry-free
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