Credit Card Loan vs Personal Loan: Which is Best for You?

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Credit Card Loan vs. Personal Loan: Which One Should You Choose?

Fixed vs Floating Interest Rate: Understanding the Key Differences & How to Choose?

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Personal Loan Documents Required in India: Eligibility & Process

Applying for a student loan can be perplexing. Here is a guide to help you steer through the various components of a student loan.

Navigating the Path of Student Loans: A Comprehensive Guide

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"Navigating the Path of Student Loans: A Comprehensive Guide"

Anoop Menon

Get your loan basics covered: Think interest rates, clearing debt, etc.

<p>Student loans are an important way for people to access education. They are now easier to apply for, allowing more high-achieving students to attend their desired institutions. Here is a guide to getting student loans, including eligibility criteria and current interest rates.</p><h2>How to Apply for an Education Loan in India?</h2><p>Applying for an education loan in India is now easier than ever. You can apply for a student loan online if you satisfy the eligibility criteria. Here is how to apply for a student loan:</p><ol role="list"><li>Visit the official website.</li><li>Fill up the form with all your personal details and course details.</li><li>Enter details about your co-applicant.</li><li>Submit your and your co-applicants documents.</li><li>Wait for your application to get approved.</li><li>Once approved, your loan will get disbursed soon.</li></ol><p>Navigating through the process of applying for a student loan isn’t easy. There are various components of a student loan that you must be aware of. Here is a brief look at each of them, before you apply for an education loan.</p><h2>What are the Eligibility Criteria for Student Loans in India?</h2><p>Although specific criteria may vary, there are certain criteria that most loans need you to satisfy. Here are some of them:</p><ol role="list"><li>You must be an Indian national or have an Indian passport (for NRIs).</li><li>You should be admitted to a recognized school/institute/university course.</li><li>You must have a parent as a co-applicant. In the absence of a parent, a guardian or close relative can be a co-applicant.</li><li>Some student loans also require collateral.</li></ol><p>For specific details, you should always visit the official website of the loan you are applying to.</p><h2>Courses Covered Under Education Loans In India</h2><p>Most education loans in India cover all school, undergraduate and postgraduate courses. They also cover PhDs.</p><ol role="list"><li>Undergraduate Degrees and Diploma courses - B.A, <a target="_blank" rel="noopener noreferrer" href="http://B.Com">B.Com </a>, B.E, B.Ed, <a target="_blank" rel="noopener noreferrer" href="http://B.Sc">B.Sc </a>, B.B.A, M.B.B.S, B.Tech, L.L.B, and others</li><li>Postgraduate Degrees and Diplomas - M.A, <a target="_blank" rel="noopener noreferrer" href="http://M.Com">M.Com </a>, <a target="_blank" rel="noopener noreferrer" href="http://M.Sc">M.Sc </a>., M.Res., LLM, M.F.A, M.Ed, M.Phil, M.B.A, M.D., and others</li><li>PhD Courses and others related to Doctoral Programmes</li><li>Specialized Training Courses</li><li>Certified courses like in computers, Nursing, Teaching, job-oriented course, etc</li><li>Any job oriented courses like Diploma in Engineering, Agriculture, Veterinary courses and others</li><li>Degree / Diploma in Army, Navy or Air-Force Training courses</li><li>Degree / Diploma in Aeronautics or any other relevant Pilot Training courses</li><li>Drone Training in renowned institutes</li><li>Miscellaneous other courses run by the State Skill Mission or National Skill Development Corporation</li></ol><h2>Expenses Covered Under Education Loans in India</h2><p>Most education loans in India cover the following expenses:</p><ul role="list"><li>Tuition fee</li><li>Hostel and mess charges</li><li>Caution deposits</li><li>Travel expenses</li><li>Book, gadgets, and instruments required for the completion of the course</li><li>Insurance premium</li><li>Expenses for completion of projects/thesis</li><li>Interest Rate and Moratorium Period</li></ul><p>Interest rates on a student loan can vary greatly, from as low as 1% to even 15%.</p><p>After completing the course, you get a 1 year moratorium period where no EMIs need to be paid. However, the interest is charged during this period.</p><h2>Repayment Tenure</h2><ul role="list"><li>Student loans have a flexible repayment tenure.</li><li>The tenure starts after the course and the moratorium period is over.</li><li>Repayment tenures for student loans can last up to 15 or even 20 years.</li></ul><h2>Wrapping up</h2><p>Student loans have offered the opportunity to crores of meritorious students to pursue the course of their dreams, regardless of their financial status. With banks and non-banking financial organisations making applying for student loans convenient, education is no longer a far-fetched dream for anyone.</p><h2>Frequently Asked Questions</h2><h3>1. What exactly is a student loan?</h3><p>Student loans cover expenses while studying, such as tuition, housing, travel, books, and more.</p><h3>2. How do student loans differ from scholarships and grants?</h3><p>Scholarships and grants are given to meritorious students as free money, while student loans require the entire loan amount plus interest to be paid back.</p><h3>3. What types of student loans are available, and how do they compare?</h3><p>Student loans can be secured or unsecured. For higher loan amounts, lenders usually require collateral as a security.</p><h3>4. What factors should I consider before taking out a student loan?</h3><p>You should consider various factors before taking out a student loan. Some of these include:</p><ul role="list"><li>The loan amount</li><li>The repayment tenure</li><li>The interest rate</li><li>Whether the particular loans, etc cover all your expenses.</li></ul><h3>5. What are the repayment options for student loans, and when do I need to start repaying?</h3><p>Student loans can be repaid in the form of instalments or EMIs. Your repayment tenure starts 1 year after the end of the course.</p>