How to evaluate Education Loan options ?

Education loan has become important aspect in case of higher education. Considering 2 year program fee for brand institute like IIM Ahmadabad is around Rs. 25  lacs.

Even for many other quality professional , educational courses expenses run into lacs of rupees. It becomes important for the student to evaluate all the options to get educational loans and avail maximum tax benefits in the future.

Many financial institutions are providing education loans to the student. Student can evaluate various parameters to select education loan which will provide maximum benefits

Interest Rate

Many financial institutes have come up with attractive interest rate scheme for the education loan.Student should select institute with minimum interest rate for the loan.

Processing Fee

Generally processing fee for education loan is nil. But there might be some hidden cost associated with it.Student should always cross check all the hidden cost like Mortgage cost, consultant cost, documentation cost etc.

Loan Guarantee

Generally financial institutions require mortgage of the property or written assurance of the third party person to make loan secure. Student should make sure that cost of mortgage is minimum.

% Loan of Total Expenses

Student should check if banks are giving loan which includes all expenses like Travel, hostel, meals, tuition  fees, books etc.

Repayment Period

It is important to have flexible repayment period.After completion of education course, it takes time to join corporate career for the student. So banks should have flexibility options to start repayment period.

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