Best education loan provider in India

1. Choosing the best education loan provider in India Taking an education loan is very common for students who want to pursue higher studies. The education loan covers most of the major expenses. This ensures that students that are worthy and deserving but cannot afford their admissions into a top university in India do not have to worry anymore. The financial institutions review the applicant’s grades, academic background, the course they wish to pursue, the university that is offering the course, and what kind of employment the student would get upon the completion of the course.

2. This is a great way for the students to fulfill their dreams, but students often make a mistake when choosing their loan provider. They end up choosing a loan plan that turns out to be a huge burden on them and they end up struggling for a long time to clear the loan amount. This happens because the students do not carefully review all of their options before finally settling on one. They are unaware of all the options or the different loan providers they can go with. They should enquire and compare all their different options in order to get the best education loan provider in India. It is not necessary that students have to go with banks for getting an education loan. They can apply online for an education loan to the banks as well as the non-banking financial companies (NBFC). Let us take a look at the features of banks and NBFCs and check what they are offering to understand which is the best education loan provider in India:

3. The restrictions- The banks, as well as NBFCs, cover the basic charges of college fees, travel expenses, cost of books, equipment, building fund deposit, and many other expenses. But in this case, the banks are more restricted as they only consider giving out loans to the universities that are recognized by the Government. The NBFCs are a little more flexible as they are more lenient as compared to the banks, however, they too check the credibility of the university and the scope of the course. The Interest rates- For banks, the interest rates were linked to the bank’s base rate earlier. Since the 1st of April 2016, the interest rates have started being linked to the bank’s cost of funds based lending rate (MCLR). The NBFCs do not follow this concept, they fix the interest rates based on the current market competition and the total cost of their funds.

4. The cost of margin money- In some cases, for loans that go above INR 4 Lakh, the students will be asked to furnish margin money which could be set up to 5% of the total loan amount. This is for the courses in India and could be up to 15% for foreign universities. Options for repayment- Generally, the process of repayment does not start until 6 months of completing the course. The repayment process is very similar for both the banks and the NBFCs Choosing to go with one comes down to the individual choice, but if students want loan plans with a little more flexibility, they should look to take a loan from an NBFC. We hope this article has helped you in choosing thebest education loan provider, all the best!

5. To know more visit: • https://www.avanse.com/education-loan/study-abroad-loan • Facebook- https://www.facebook.com/AvanseEducationLoan • Twitter- https://twitter.com/avanseeduloan • Instagram- https://www.instagram.com/avansefinancialservices/ • Youtube- https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug