With the growing number of education loan providers, the use of a loan to pay for higher studies has become quite common. After all, higher education does provide your child with the scope to do financially better in life with better career prospects, training, and networking opportunities. With education loan, borrowing becoming a common solution, lenders now offers the choice of applying online. Thus, you need not worry about standing in long queues and filling out endless paperwork. Applying online is a simple process, however, it is important you go about it the right way. Here is a step-by-step guide to help you if you’re wondering how to apply for student loans.
Consider Your Options
In order to make the ideal funding decisions, consider all options and select the best. Choose between an education loan and a Loan Against Property for Education based on the amount of funding you need and the documents you are able to submit. Remember an education loan may cover a maximum of 95% of the amount needed for college tuition and has a maximum tenure of 15 years while a loan against property offers funding in crores based on the value of your property and a tenure of up to 20 years to repay it.
Once you have decided on your ideal funding solution, determine whether you should be borrowing from a bank or an NBFC. Figure out the more affordable option from the two and watch out for hidden charges.
Additional Read: Various Education Loan on Property Schemes
Check The Eligibility Criteria
The eligibility criteria differs among education loan providers and may be even more different based on the funding solution you select. Keep in mind a loan against property can give you a higher sanction and an education loan requires proof of admission and various other education certificates. Thus, check the eligibility criteria and have documents ready beforehand to avoid rejection based on eligibility. You will also need to see the procedures for submitting documents and how to apply for a student loan online to ensure you submit them on time.
Calculate Repayment Beforehand
Despite your confidence in your repayment potential, calculate your EMIs beforehand and ensure your finances can support them without compromising on other expenses. Select a tenure that isn’t too long, but also results in EMIs that are convenient for your pocket. Further, consider options like a Flexi Loan offered by reputed lenders like Bajaj Finserv. With this, you can borrow as you need from your sanction and pay interest only on the amount utilised. Further, you can choose interest-only EMIs to manage your cashflow better for the first few years.
Additional Read: How to calculate the EMI on your Education Loan
Carry Out The Necessary Online Application Procedures
Now you are ready to apply online. Log on to your preferred lenders website, select on the education funding offering and click ‘Apply now’. You will be led to a student loan application form that you will need to fill out. Post this, lenders like Bajaj Finserv have a representative reach out to you and the necessary documentation is picked up from your doorstep. Bajaj Finserv also offers you an easier way to apply.
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