Higher education at a renowned institute helps your children build the potential for a brighter future. You may be surprised how much of a difference the name of a good university can make on their resume. Moreover, regardless of whether your child chooses to study within the country or outside, an educational loan can help you fund all the financial requirements without straining your finances for other obligations.
However, as you will need to repay the borrowed funds, applying for a loan with the most nominal interest rate is a must! This way, you can ensure successful repayment with ease. Wondering how to acquire such rates? Then, take a look at how you can bag an educational loan in India with the lowest interest rates.
Ensure you meet all the eligibility criteria
The eligibility criteria vary amongst lenders. Check your preferred lender’s eligibility criteria to ensure you qualify for an education loan. This way, you can avoid borrowing from a lender at high-interest rates. Being eligible also works to your benefit as you can negotiate the interest rate with the lender and bag one of the lowest student loan rates.
Consider a loan against property instead of a regular educational loan
Instead of an education loan, you can also take a loan against property to pay for higher education. As this is a secured loan, you can expect to find the cheapest student loans. So, you can enjoy lower interest rates even when you need to borrow a high loan amount to pay for all requirements, from flight tickets to tuition and lifestyle needs. What’s more, unlike an education loan, a loan against property offers higher funding based on the value of your property. An education loan funds 70%-95% of the amount you need; however, you can get the entire amount you need with a mortgage loan. Notably the repayment tenor of an education loan can stretch up to 18 years, while an education loan offers a tenure only as long as 15 years.
Look for an affordable lender
Various education loan providers in India offer different interest rates. While you may be tempted to borrow from your bank based on your relationship with the institute for years, consider NBFCs too. For instance, Bajaj Finserv offers loans at nominal interest rates with easy repayment. Further, there are no hidden charges that add to your expenses.
Choose convenient EMI options
With a longer tenure, you can reduce your EMIs conveniently. A lender is less likely to trust your repayment abilities if you borrow a heavy amount on a short tenor, especially if you don’t have a high income or a perfect credit score. While opting for a longer and more reasonable tenure tenor, remember not to choose too long as it will only increase your interest expenses. You can also consider availing Flexi-loan facilities that allow you to borrow as you need and incur interest only on the used amount. Thus, you are prepared for unexpected expenses without paying extra interest.
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