Breaking down 6 Commonly Held Myths about Education loans in India.

For aspiring students who have big dreams, an education loan is truly a saviour. It can help them reach a stronger level of confidence and provide them with the right resources to achieve their dreams.  Yet, many students and their guardians hesitate to take education loans as there are many misconceptions regarding this kind of loans.

To help clear the air and provide the correct information to students, we are breaking down the 6 commonly held myths about education loans in India. Let’s go.

#1 – Education loans only provide funding for academic fees

Many students think this way and do not opt for education loans as they are worried about the costs of other expenses. The truth is that when you take an education loan in India, you are not only getting financing for your academic fees but also for other expenses. Travel expenses, accommodation expenses, study material costs, and so on will be covered by your education loan.

#2 – Education loans in India take a lot of time to get sanctioned 

Students are concerned about the time taken by lenders to sanction their education loans as even the slightest delay could cause problems in their admission process. The good news is that there are many lenders in the market who understand concerns such as these and provide quick loan sanctioning. Once you have provided the required documents, you may get your education loan within 4-6 days if you have taken unsecured loans or 8-10 days if you have taken secured loans.

#3 – I may have to give property or assets to the lender for getting an education loan

A lot of people are still under the impression that education loans in India require collateral of high amounts. This is not true as you can avail an unsecured education loan where you do not have to provide anything as security to the lender. There are many lenders, especially NBFCs who provide this option.

#4 – Prepaying the education loan is the best way to repay

Prepaying your loan may seem alluring and the best way to get rid of your education loan debt, especially if you have come across large amounts of money recently. However, one must remember that there’s often a prepayment penalty involved in most education loan policies. Make sure that you are aware of such penalties and charges before you opt for prepayment.

#5 – Education loans are only for abroad study plans

With the standard of education in India rising to meet global standards, the cost of education in India is rising too. There are chances that you may have to move to another city or town for your education. Often, these popular study destinations and big cities like Mumbai, Delhi, Chennai, and so on have higher standards of living and thus, may incur several costs. To keep up with these frequent demands on finances, students can opt for an education loan in India that meets their requirements.

#6 – You need to have the best academic record to get an education loan in India

While your academic record is one of the criteria that lenders look for while providing education loans, it is not the only or the most important one. A reliable education loan provider will look at your potential and not your past academic record.

Do bear in mind that the features and terms and conditions of education loans may vary between lenders. Kindly read the policy documents carefully before signing up for anything. We hope this article has clarified the truths behind myths about education loans in India.