The date of application for any education loan might seem to be a mundane task but it matters a lot. An important part of the higher education journey, education loan involves various aspects. Application date, being one of them, plays an important role from the perspective of your admission.
Going for an education loan before or after your admission can make different impacts. An already existing education loan can assure your university of your source of funds. On the other hand, an admission letter in hand can easily convince your bank to give you an education loan. Both scenarios have their own implications.
However, this entire scenario depends upon the college you are seeking admission to and the bank providing you with the loan. There are many banks who won’t give you a penny until you present them your admission letter. At the same time, there are colleges which will ask you to declare your funding sources for the course.
Dealing with this complex situation can be a bit troublesome. So we bring to you some points which will help you figure out when to avail your Education Loan in India and Abroad. Whether to avail a “loan before admission” or to go for a “loan after admission”.
Loan After Admission
The general case, most of the people opt for this choice. Even many banks suggest that you should do the loan processing only after your admission is confirmed. Here are some points related to availing a loan after admission which will help you in understanding the scenario.
1. Admission Letter
The most important fact will be that when you approach the bank for an education loan, you would be having your admission letter in your hand. An admission letter confirms your genuineness. This makes the bank easily trust you.
2. Easy Disbursal
As the bank trusts you now, this will lead to a fast and hassle-free disbursal process of your education loan. Once the bank is aware of your institute, it will take care of the rest of the loan proceeds and all the disbursal timings.
Banks and NBFCs offer various customized loan schemes these days. They make schemes specifically for particular courses and institutes. This helps you in getting a scheme which will suit your needs better.
Loan Before Admission
In contrast to the above scenario, there are many banks and NBFCs which give you an education loan before you apply for admission. What are the benefits of applying for a loan before admission? Let’s find out.
1. Funding Source
An education loan before admission will clarify your funding sources to your college. Some colleges show quite a probing attitude regarding your finances and don’t give you admission until you mention your sources.
2. Easy Admission
An already existing loan will ensure that there occurs no kind of hindrance in your admission process. It will cease all the qualms of your university officials and take you through a smooth admission ride.
3. Trouble-Free Visa Inquiries
Visa inquiries pose as a huge headache sometimes. Education loan will confirm the authenticity of your abroad education to the embassy officials, increasing your chances of getting a Visa.
Timing matters a lot in case of education loan. From smooth admission to smooth loan disbursal, everything is at stake while you plan when to avail that education loan.