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How to Secure an Education Loan Easily?

Pranjal Singhal Pranjal Singhal
Content Curator

How to Secure an Education Loan Easily?

With the increasing standards of higher education and the rising fees, more and more students are choosing education loans. Most parents also prefer availing education loans over other mediums of funding their child’s education. More than 5 million students in India have availed various Education Loan Schemes for Studies in India and Abroad from either private banks or PSUs.

However, some recent changes in the education loan policies are restraining people from availing education loans. Still, you don’t need to worry. There are various effective ways to ensure that you get that education loan from your favourite bank.

1. Plan Your Course Prudently

It is well evident that banking institutions prefer students who pursue their course from reputed institutes like IITs and IIMs. Even government banks like the State Bank of India do not hesitate for a second before disbursing loans to such students whether at the undergraduate, postgraduate or doctoral level.

There are some job-oriented courses which are preferred by most of the banking institutions like:

  • Certification courses from reputed institutes like IIT, IIM, DU, etc.

  • Computer courses

  • Engineering courses

  • Courses run by State Skill Missions, State Skill Corporations, and National Skill Development Corporation

  • Medical courses

There are some banks that offer loans for specialized courses, training and diplomas too. Try opting for a course which suits your need and is also preferred by banks at the same time. 

2. Show Bank Your Alternative Repayment Sources

Banks ensure that the person availing education loan is able to repay them. So, find alternative ways to repay loan apart from your prospective job.

You can apply for scholarships to lessen your burden or assure your bank by doing a part-time job. Apart from all these, don’t hesitate to mention your family sources, if any such sources exist.

While opting courses, ensure that there are good career prospects. It is also highly suggested to pay the EMIs as soon as possible to reduce the interest burden. Don’t take the moratorium period for granted.

3. Deal with the Discrepancies

It is suggested to take the loan from a bank you have your account in. Bank authorities prefer customers who have an account in their branch. Not all applications routed through the Vidya Lakshmi portal are approved. So, make sure that you stay alert regarding any notification. Keep contacting the banks for updates regarding your application.

Access various financial platforms for getting an unsecured loan for higher studies within time without any discrepancy. Most of them deal with processes like documentation approval, transfer of payments, etc. in a smooth and time-efficient manner.

4. Choose Your Scheme Wisely

Education loan schemes do not only cover your course fee but also many other charges like accommodation fee, books, lab charges, hostel fee, travelling expenses, library fee and insurance premium. This lessens the weight on your parents’ shoulders.

Leveraging on the guardian’s creditworthiness or offering some collateral are also the ways to bring down the cost of education loans.

Various schemes offered by many banking institutions like Punjab National Bank are very beneficial for economically weaker students. These schemes generally provide concession on the interest rates.

So, research in advance and choose wisely to establish your solid future without any hassle. Show the banks that you are totally suitable for their education loan.