Education loan is one of the first significant transactions for many students. Given the increasing cost of education in current times, many find it wise to take a student loan for pursuing their studies further. However, if you are applying for an education loan for the first time, it can be confusing to follow the application process.

Nonetheless, to help you have a hassle-free application process, here’s what to do and avoid when taking an education loan:

Do’s

1. Be thorough about the details

It is essential to understand the various parameters of your loan like the interest rate, EMI, moratorium period, documents required, etc. Some lenders require you to offer collateral while taking the student loan, and it is best to inquire about the same before proceeding with the application process. It is also recommended to fill the education loan application form with accurate information as many lenders cross-check the details. If they find any discrepancies, it may delay the student loan process.

2. Estimate the cost

It is essential to know the approximate amount you need to borrow. Therefore, before you opt for an education loan, you have to consider the university’s tuition fees, accommodation expenses, and other costs. Education Loan EMI Calculator can help you a great deal to calculate your EMIs. All you have to do is enter the interest rate, tenure and loan amount in the Education Loan EMI Calculator. This free online tool allows you to try different combinations of tenure and loan amount to arrive at the EMI amount.

Don’ts

1. Not researching the course and employment aspects

Many students take education loans to pursue their higher studies to fund their education independently. Whether you study in India or study abroad, the ultimate goal is to achieve a successful career. Lucrative employment opportunities will allow you to pay off your student loan effectively. Therefore, it is essential to know which course and/or university will offer you better prospects.

Hence, you must invest time to research the right course, university and destination before making the final plan. Repaying your education loan will also build your creditworthiness among the lenders, which will allow you to purchase other financial products in the future.

2. Applying for a higher loan amount than required

Please remember that it is necessary to repay your education loan responsibly; otherwise, it will have a negative impact on your credit history. Thus, students need to understand the amount they will require before applying for a student loan.

This helps you repay the education loan without any defaults. So consider all the important and ancillary expenses when you plan to take a student loan, including tuition fees, accommodation costs, living expenses, study material expenses, cost of learning devices and other education-related costs.

We hope this article assists you with your education loan planning process. At Avanse Financial Services, we intend to make your student loan journey easier for you. Hence, we offer several benefits such as 100% finance, customized loans, fastest sanctions, flexible loan repayment options, score-based finance and more. If you have more questions, please remember we are just a call away. All the best!