Education loans may be considered a useful tool for students who want to continue their education but cannot do so due to a lack of finances. There are increased costs of tuition fees in colleges and universities locally and internationally, this is one of the reasons why education loans have become important. Not only do education loans offer financial assistance required to pay for tuition fees, books, accommodation and other essentials. It helps the students relieve the strain by providing them with the necessary financial aid. In this article, we will explore the benefits and eligibility of ed loans.
Benefits of Online Education Loan
Education loans offer multiple benefits apart from just funding your education. Understanding these benefits helps one to clear their goal of taking these loans. Some of the considerable benefits of these loans are mentioned below.
Higher Amount of Loan
Many online lenders offer education loans with a minimum amount of Rs. 50000. This loan will include various charges such as tuition fees, hostel charges, books, etc. So, the loan amount required by a person can be subject to eligibility and cost. Research well about different lenders and the amount they’re offering and then choose a suitable option.
Lower Interest Rates
Online education loans also come with attractive interest rates. These rates are repo rate-linked interest rates. This means it is the rate which is directly linked to the Repo Rate set by the Reserve Bank of India (RBI). Thus, if the repo rate increases, the repo rate linked interest rate will also increase and vice versa.
Pre Admission Sanction
Another significant benefit of an online education loan is that they are sanctioned before admission to the educational institution. This is done based on one’s profile, where they check whether the student can repay the loan. Also, it helps students to avail the funds in advance and pay the admission fee on time.
Quick Disbursal
When applying for an education loan online one also gets to enjoy the benefit of quick loan disbursal. Most online lenders take around 15 days from the date of receipt of an application for disbursal.
Avail of a Variety of Courses
Education loans are offered to deserving students who get admission in well-reputed courses such as engineering, management, etc. These loans can be availed for any level of education ranging from graduate to postgraduate both in India and abroad. This flexibility helps students pursue their dreams without financial constraints.
Eligibility for Education Loans
To qualify for an education loan, applicants must meet certain eligibility criteria. While these may vary between lenders, some common requirements include:
- Age of the Applicant: The student must be between 18 and 35 years old.
- Admission Confirmation: The applicant should have secured admission to a recognised institution in India or abroad.
- Academic Performance: A good academic track record may enhance the chances of loan approval.
- Co-Borrower: Most lenders require a parent, guardian, or spouse as a co-borrower to ensure repayment.
- Repayment Capability: The lender will assess the financial stability of the co-borrower and the student’s future earning potential.
How to Apply for an Education Loan Online
Applying for an education loan has become quite easy with the introduction of online education loan portals. Let’s understand the process of applying for education loans online.
Banking Websites
Various banks are offering education loans on their websites, both in the country and abroad. One must check their terms and eligibility criteria to see if their terms match your requirements or not. Choose the one that perfectly matches your needs and offers easy eligibility criteria for quicker approvals.
Banking Apps
Other than banking websites, banking apps offer education loans at competitive interest rates. People prefer these apps due to their quick application and disbursal processes. It usually takes around 3 days to a week to disburse the amount to your bank account. So comparing different apps and their conditions can help choose a suitable option.
Financial Websites
Other than banking websites, one can also consider various financial firm’s websites for education loans. Many reputed financial institutions offer these loans at competitive interest rates and flexible repayment options. Checking these websites increases your options to choose from which eventually leads to an informed decision.
Financial Apps
Financial institutions offer not only education loans but also home improvement loans through their mobile applications. They understand that people have busy schedules and the easiest way to reach them is through their phones. These applications provide attractive interest rates, minimal documentation, and a user-friendly interface, making the loan approval process quicker compared to websites.
Conclusion
Education loans have become a crucial resource for students aspiring to achieve academic excellence without financial barriers. With benefits like higher loan amounts, lower interest rates, pre-admission sanctions, quick disbursal, and access to various courses, these loans empower students to focus on their education and career goals. If you’re planning for education funding, ensure you research and choose the right lender that matches your needs.
