Guide to follow for an education loan

The cost of education has crossed the skies in today’s world. Affording an education on your own has become an almost impossible task. But that does not mean that you cannot pursue further studies in the career you want. With the help of an education loan, it is possible for you to complete your education without having to worry about the funds. 
The payment of these education loans starts once the course is completed and you get a job. However this could be an issue if you are not able to start the repayment of the loan. However, you do not need to lose sleep over it as we have provided a list for you to keep in mind so that you can manage your loans in an efficient way and avoid all complications. 
1) Keep a definite course in mind- Many people apply for any course just for the sake of getting into a good university. This is a huge mistake as when they realize they are not really interested in the course that they have taken, it is too late. It is possible for them to change their course of course, but a lot of money has already been wasted in undertaken loans. Do not select a course unless you are 100% sure about it. Research on the variety of options that you have, then make a sound decision on a course that you really want to do. 
2) Your choice of a bank- There are a lot of banks that will help a student with an education loan. For small amounts, the banks keep the loans unsecured, but for big sums, the applicant has to keep some kind of security. For that reason, you should choose a bank that provides you with the best moratorium period. Different banks offer different interest rates and hence that is also an important aspect that one should compare, so as to get the best deal. One should never go for the bank that offers the most finance, rather they should go for a bank that offers them the best loan terms. 
3) Pay before time- Moratorium periods are periods where you do not have to pay money, hence it is called the holiday period. It is always advisable to not spend your money thinking you do not have to pay during that period, and instead save up for the expenses that lie ahead in the future. Usually, this time phase is for a period of 1 year after the course is done, or 6 months after you get a job, whichever happens first. It is best not to let the interest on the education loan get accumulated as you have an option to pay it off during this period itself, which will lessen your burden. 
4) EMI costs- A lot of people choose to take an EMI plan that stretches out for a longer duration as the amounts that have to pay for the instalments are small. But one should know that the interest amount, in this case, is more as the EMI is for a longer duration. One should opt for the shorter duration, because even though the EMI costs will be more, the loan will get done faster, and with lesser interest applied since the duration was shorter. 
We hope this article is useful to anyone who plans on taking an education loan. 

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