Even though as per CRIF Highmark, an RBI approved credit bureau, the total number of students who are availing of an educational loan has dropped by 7%.
The average loan ticket size has increased by 47% in 2018 from the previous year. Moreover, the disbursing amount per applicant has also risen to Rs.9.6 lakh in 2018, Rs.2.8 lakh more than last year.
Hence, it is clear that the expenses of education are increasing rapidly. Moreover, the educational cost of any well-known colleges or universities in India is already high. And, when it comes to studying overseas, an education loan is the only option for several.
However, to avail sufficient financial support, you can also avail of a student credit card in India.
To apply for an education loan you first need to decide which loan provider you are opting for. Then, after meeting the eligibility criteria you can apply for the loan online. Here is the complete guide to help you out with finding and applying for a loan.
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How to Choose the Right Loan Provider?
While selecting the loan provider you should consider the following factors
1. Low-Interest Rate
The most important factor is the interest rate while you are opting for an education loan. The interest rate decides the total payable amount of your loan. Hence, if the interest rate is high you will be paying higher EMIs. So, compare available products in the market and then decide on the right loan for you.
2. Easy Application Process
You should always count on an easy and effortless process to avail of a loan. Additionally, make sure to check the same while opting for the best credit cards in India.
3. High Loan Amount
The education costs of higher studies need substantial funds both in India as well as to study abroad. Hence, you need to avail of a big size loan amount to accommodate all the expenses.
4. Convenient Tenors
As you have to repay a high-value payable amount, you must look for convenient tenors according to your financial strength and stability. Even though a longer tenor accumulates a higher payable amount, you can decide the suitable option for you.
You can consider one of the best credit cards in India like Bajaj Finserv RBL Bank SuperCard which provides several industry-first features.
Moreover, Bajaj Finserv provides pre-approved offers to make the application process hassle-free. These offers are available on home loans, personal loans, home loans, and numerous other financial products. You can check your pre-approved offer by providing your name and phone number.
Application Process
You can apply for an education loan with the following steps –
Step 1
You need to access the online portal of your selected financial institution and fill up an application form with details such as name, address, contact number, latest academic details, KYC documents, parent’s income proof, etc. Then, you have to upload a copy of your scanned passport-size photograph and digital signature.
Step 2
On successful submission, you will receive a notification message in your registered mobile number. Your lender will organize a meeting to verify all your details. Also, they will discuss your academic performance, the course or subject, etc.
You can also opt for a student credit card in India to avail yourself of further benefits. However, proper financial management is vital to get the most out of credit cards.
Step 3
After validating your documents, your loan provider will ask for a guarantor. Only after verifying the credit history of your guarantor, they will approve your loan.
Step 4
On completion of all the official formalities, your loan provider will disburse the credit. They will directly pay off your tuition fee to the institute or university.
To fund other necessary expenses such as room rent, food, and educational accessory cost you can avail student credit card in India; make sure to use the credit card wisely.
Consider all the above-said features while opting for a loan. And, always repay the dues timely if you are availing student credit card in India.
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