Education Loan: If you dream about studying higher and attending the top colleges in the world and have the pristine academic record to back up your dreams, the only thing standing in your way are the funds. We all know that higher education in the best institutes is an expensive affair. Apart from the course and tuition fees, there are several other expenses to cover. One viable option to meet your education expenses is to avail a loan for students. It is the best option for the student who wants higher study, and parents own property.
If your family owns a property, getting an education loan becomes simpler. Several financing companies provide study loans against properties. One can use the education loan calculator to calculate the EMI amount to pay monthly or yearly. To calculate the amount you need to fill the information of loan amount, tenure, rate of interest. You will know the information about the monthly EMI. It is an online tool. It makes the calculation is more comfortable and accurate. If you are worried about repaying the loan, following the steps mentioned below should make EMI payments easier.
Tips To Follow For Repayment Of A Loan For Students
To enjoy a stress-free loan repayment, you need to take
some appropriate steps before opting for an education loan on a property. Have
a look at the tips for the repayment of the student loan:-
● Step 1: Determine The Amount Of Loan You Need
In case of loan against property for education, you can
avail loans of up to Rs. 3.5 Crore. However, you may not require such a
high-value loan upfront. Determine exactly how much you need and apply for the
same amount. Availing higher than the necessary amount of loan will lead to result
in higher, inconvenient EMIs and increase financial burden during repayment.
So, it is better to apply for the amount you need for your studies.
● Step 2: Pick Loans With Competitive Interest Rates
When it comes to student education loans against
property, you have several options to choose from. Multiple financing companies
offer such loans at varying rates of interest. Hence, before applying for the
education loan from any financial institution, you should look for a lender
charging competitive interest rates and nominal charges in the form of
processing fees, prepayment and foreclosure fees, etc.
● Step 3: Choose A Comfortable Loan Repayment Tenure
Loan for students against property allows you to select a
tenure you are comfortable with. For instance, some financing companies offer
up to 20 years for repayment of the loan. Longer tenure will result in lower
EMIs, and vice versa. However, an extended tenure also increases the total cost
of loan payable. Weigh your options and determine which you are comfortable
with at the time of applying.
Now that you know what you should do before your loan
application, here are some steps to follow during your repayment tenure.
● Step 1: Timely Payments of the Loan EMI
You must ensure to make timely repayments once you avail
a loan. Timely payments will prevent penalties and improve your credit rating.
A good credit score is essential to avail loans in the future. Always mentioned
a good credit score because bank prefers such customers most and easily
approves their loan request instantaneously. Hence, to make timely payment and
good rating of credit score is essential. Additionally, if you fail to pay the
EMIs, the financing company may liquidate the mortgaged assets to recover the
● Step 2: Try To Part Pre-pay Or Foreclose The Loan
Trustworthy lenders allow you to pre-pay or foreclose
student loans in India. You can pay a considerable portion of the outstanding
sum whenever you have excess funds in hand. Likewise, you can also pay off the
entire outstanding before the end of the tenure.
Pre-paying the loan will either lower the EMIs or reduce
the tenure, while foreclosure saves you from paying a considerable amount as
interest on the outstanding loan. Make sure you ask your lender about
prepayment and foreclosure charges, if any, involved with the loan.
Once you follow both the steps, paying off a loan for
students becomes much easier and convenient.
Loan against property offers a great alternative to
education loans to fund your studies. Attractive features of such loans include:
● No end use restriction, meaning that you can use the
borrowed sum to meet any financial requirements like funding your education,
cover wedding expenses, pay medical bills, or even adequately repay your existing
● Longer tenure options, which makes EMIs affordable.
● Initiate easy transfer of your existing Study Loan with
Bajaj Finserv’s Balance Transfer facility. Get a high-value top-up loan with
● High-valued loan amount, allowing students to cover
● One can get an education loan of high value up to Rs. 1
Crore if you are a salaried individual. Take a loan up to a maximum of Rs. 3.5
Crore if you are self-employed.
● Need only some require minimal documentation for
There are various private, government banks, private
lenders, and NBFCs which provides such types of loan with affordable interest
rate. Bajaj Finserv is such a popular NBFC which provides education loan on the
very low-interest rate, secure repayment options and also requires minimal
Additionally, it provides pre-approved offers to make availing loans simpler, hassle-free, and quicker. These offers are available for unsecured loans, such as personal loans, home loans, business loans, and secured loans, like loans against properties and much more. Before borrowing money, keep in mind how much you are comfortable repaying. Know the exact cost of pursuing the course of your choice at the preferred institute and avail the loan accordingly. Forecast the salary package you are likely to receive post completion of the course. Check whether the lender offers a moratorium period for the availed loan. Consider all such features and apply for an amount which keeps the EMIs well within your budget.