Your son or daughter is excelling in education, every year getting top grades and is now ready to get a professional edge and the only sign of worry on face is HIGH COST of EDUCATION.
Chances are good to fulfill the dreams of Higher education with lots of Hard work and Education loans. With recent spurt in global economy, these loans are also not remain untouched but Indian banks are with you to real your dreams. Quickly go through these six important comparison factors before acquiring education loan:
1. Interest Rates - The first and foremost deciding factor. Whether you want to go for fixed or floating interest rate, is totally your decision. Unlike home loans, floating interest rates is better option for education loans as they don't grew too much especially in this low interest regime.
2. Repayment method - If the bank allows you to pay the interest portion of education loans immediately after acquiring it, go for it by all means. We are saying so because this interest will otherwise keep on accumulating until your education gets completed and can be charged on daily reducing balance or quarterly reducing balance.
3. The waiver period - Banks don't expect student and his family taking loan to start repaying the amount immediately after acquiring it, so they give waiver periods like repayment of loan after 6 months of employment or after 1 year of completion of education.
4. Other fees - Like processing fees, administrative fees, documentation costs etc. should be minimal.
5. Collateral,guarantee or security - All education loans above Rs.4 lakhs from banks come with collateral clause. Make sure that you have inquired bank about collateral requirements and have them ready before the disbursal of loan.
6. Down payment - It ranges between 5% - 20% of the loan amount depending on banks, it has to be paid before disbursal of the education loan amount.
No comments:
Post a Comment