With the cost of education across the world constantly rising, students and their parents have been inclined towards financing their education with the help of education loans. An education loan is one of the biggest financial decisions you can make, in order to ensure quality education without having to overburden yourself. However, before you avail an education loan, it’s crucial to keep a few things in mind.
Apart from financial benefits which may include tuition+living costs, an education loan from a good lender also offers easy repayment terms, income tax benefit under 80 E of IT act, builds the applicant's financial prudence and allows them to repay only after graduation. While a number of education loans are easily available today, students often find themselves in a quandary while picking the best option.
Here are a few tips suggested by HDFC Credila to get you started:
Choose your lender wisely: Unlike other loan products, the relationship with your education loan provider is of a longer duration, hence it becomes important to establish a rapport with them. Do not hesitate to ask any questions you might have and get clarity on all aspects of the loan. The advent of flexible, new-age lenders such as HDFC Credila strive to make the process seamless and hassle-free for students.
Understand all terms and conditions: While you needn’t be wary of the fine print, you should know what you are signing up for. Understand in depth the rate of interest, the repayment tenure and all associated fees and charges that you would need to consider, when you avail of your education loan. With the student community veering towards education loans, lenders are willing to work in tandem with customers to provide superior products and services.
Also Read: Documents Required for Education Loan to Study Abroad
Evaluate the loan amount: It’s easy to get tempted to avail of a larger loan amount when you apply for a loan. While the additional money may provide back of the mind comfort, do consider that when you begin repaying the loan, the same should not then become a burden. The right financer, such as HDFC Credila would willingly guide you as to the optimal loan amount, basis the cost of your tuition and living expenses.
Ensuring a clean repayment track record: Before you sign along the dotted line, it’s prudent to consider your income as well as your outgoing expenses. Overextending yourself financially is never a wise move, since there is a risk of defaulting on loan repayment. The repercussion of this can be felt well into your financial future, since your loan repayment pattern reflects directly on your credit history. Borrowing what you can repay comfortably should be your mantra.
The Bottom Line
It’s important to do your research and understand in depth before approaching a lender and choosing one that meets your requirements in entirety.
Disclaimer: HDFC Credila Financial Services Limited is the orginial author and sponsor of the given content.
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