7 Things To Keep In Mind Before Taking An Education Loan
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In this video, we will discuss the seven things you need to keep in mind when you take an education loan
Edited Highlights
0:03 In this video, we will discuss the seven things you need to keep in mind when you take an education loan
0:28 First thing that you need to keep in mind is the amount of education loan you need
0:36 You need figure out the shortfall in own savings in meeting the anticipated higher education expenses
0:47 It is important you take the right amount of education loan since we not only do have repay the principal but also the interest on the education loan
1:28 It must cover major head of expenses such as tuition expenses, books, laptops, housing costs and hostel fees
1:35 Second, check out if you have enough time for loan processing since the process does take some weeks
1:51 The loan providers need to figure out a host of things ranging from repayment capacity, other aspects of finances, the course and the institution for which the education loan is being sought
2:02 What is being evaluated by the education loan provider is whether after studying in the institution, the education loan can be successfully repaid
2:22 Check whether all the items of expenses get covered, ideally 100%. Remember anything that is not being covered has to be met through your own funds
3:02 You need to also check if there are collateral requirements. This is typically not existent for fairly large-sized loans to prominent institutions in India and abroad
3:27 The lending institution may seek a collateral to get a certain level of comfort for the education loan
3:43 While the student needs to be the borrower, having a co-borrower helps enhance education loan amount. The co-borrower could be a parent or a spouse in case the student is married
4:19 It is important to keep all the documents for loan processing ready since any slip is likely to mean delays in loan processing
4:49 Check whether you have the facility of being sanctioned a loan amount even before you have zeroed down on an educational institution in India and abroad
5:02 This can come in quite handy for education loan meant to finance higher studies abroad
