COVID-19 has affected everyone’s lives all around the world. From the working professional to the student, everyone has faced a change in the environment during the pandemic. For students, the ways of online learning have ensured that their classes continue. Digital platforms have been instrumental in ensuring that students’ academic progress continues seamlessly.
As we all are aware, students take education loans to complete their further studies. The government has extended moratorium periods to help them in the repayment process during these tough times. But what about students who are looking to apply for education loans? Is it a good idea? Well, there are certain things that you need to make sure your lender is providing during COVID-19 before you apply for a loan.
Let us take a look at features that you need to look for in an education loan lender during COVID-19:
A majority of students face complications in the documentation process when they are applying for a higher education loan. Since each lender will have its own requirements when it comes to the documents, you need to be aware of what the lender’s requirements are. This is why it is better to opt for a lender who provides doorstep services where one of its executives visits your house to assist with the documentation process.
Most lenders will cover up to a certain amount of your academic expenses, beyond which you will have to take care of the remaining expenses from your pocket. During COVID-19, it is quite natural for students to find it difficult to save money for their expenses. In such cases, you should go for a lender that agrees to provide 100% financing. By this, we mean a lender that takes care of the total expenses, academic as well as non-academic expenses.
If you are planning on moving overseas after the pandemic is over, it is obvious that you will need a bigger education loan amount. Most lenders require collateral if you require an amount crossing Rs.7.5 lakhs. However, during such times, you might not prefer using your assets as security for your loan. But do not worry, it is possible to find a lender that provides an education loan without requiring any collateral at all.
With the pandemic affecting many people’s jobs, their monthly incomes have taken a hit. In such cases, they might struggle with repaying the EMIs of their loans. You should never get stuck in such complications as this would affect your credit score. This is why you should choose a lender that offers you flexible repayment options so that you can pay back your loan without any hassles.
So, the next time you are in search of a lender, make sure to pick one that offers all the above-mentioned features. You can also get in touch with us at Avanse in order to talk about student loans. We provide all of the above services and will help get you a loan plan that is perfectly suitable for you.
We always aim to offer you competitive interest rates on your Avanse Education loan.
The rate of interest on your loan is calculated as: Interest Rate = Avanse Base Rate + Spread.
Our current Base Rate is 14.25% (WEF 01.05.2023).
The Spread is floating and is based on analysis of overall credit and course profiling.
This rate is subject to the terms and conditions of Avanse Financial Services Ltd.