Quality education is imperative for having a successful career in today’s competitive space. However, most students struggle to get into their dream universities due to a shortage of funds. Savings hardly cover the inflating cost of prestigious institutes. Moreover, asking friends and family for funds gets you only so far. The only feasible solution in such circumstances is turning to reliable institutions like banks. They offer different credit options.
Some have no limitations on usage, while others restrict you to a specific purpose. Loan for students comes under the latter. It offers assistance in financing your higher education. This means you face no restrictions in applying for your desired course due to a lack of funds. The banks finance your studies and handle all educational costs. Here are reasons to consider it:
Expenses Covered
Studying at a university comes with a range of expenses. A Personal Loan in this category aims to fulfill every possible cost. Some prominent charges include tuition fees, travel, accommodation, food, stationery, library fees, etc. Since all these costs get covered, you need not arrange additional funds. The Loan acts as a complete solution to fund your education without leaving out any price. Hence, it is best to estimate the total expense before applying.
Easy Repayment Terms
Unlike other loans, the repayment starts after the moratorium period in Student Loans. This means you repay after the course completion when you have a job. You can initiate repayment after six months to one year of finishing the curriculum. As a result, there is sufficient time to establish an income source. Moreover, the repayment term ranges between five to seven years. This leads to flexibility in spreading your installments.
Affordable Interest
Banks use the MCLR concept to determine the Personal Loan rate of interest. Besides, they also consider their policy to set a competitive rate. The interest rate on Education Loans is lower than other credit options. This is especially true for female students who get a concession. The eligibility parameters also influence the interest charged significantly. It is best to boost your profile to attract a favorable interest rate.
Promotes Self-reliance
The biggest advantage of getting a loan for students is practicing financial discipline. Since you pay for your educational expenses, you reduce the burden on your parents. They get to save funds for their retirement and other financial goals. Meanwhile, you self-fund your studies without any help. This sense of responsibility brings seriousness to excelling academically and securing a fulfilling job.
