4 stages of study loans from its procurement to its repayment.

Higher education is the best way to secure your professional career. It helps students learn the skills of their trades, and also moulds them into competitive professionals ready to serve the society. But pursuing higher education is an expensive affair, and students do not have money to pay their higher education expenses. To help such students, lenders offer study loans. Many students do not have the exact knowledge about study loans.

In this article, we will tell you the student’s journey of taking a study loan from its procurement to repayment.

1) The Study Loan Procurement Stage

In this stage, students search for the right lender and a suitable deal on their study loans. The student reads the reviews about different lenders on the internet. They learn the praises or complaints the borrowers have from their lenders. Based on these reviews, they shortlist some lenders. Then the student visits the lender’s office or their website, and gets information about the maximum loan amount lenders would offer, the expenses they will cover, the interest rate they will levy, the moratorium period they will offer, the repayment tenure and the EMI value they will set, and so on.

Also, the student asks the lender if they provide value-added services like fast-track loan approval, doorstep loan service, proof of funds, pre-visa study loans, pre-admission study loans, and so on. Based on these factors, the student selects the right lender to pay the expenses of their higher education. Then the student fills the loan application form, submits relevant documents, and acquires the study loan.

2) The Course Period

In this stage, the student is imbursed with the first instalment of the loan, where their university tuition fee is paid and other education-related expenses are covered. These expenses are covered until the end of the student’s course. As soon as the first instalment of the loan is disbursed, the interest is levied on the disbursed amount.

The student can reduce the repayment burden by repaying the interest levied on the principal amount during the course period itself. A student can get a part-time job for this purpose.

3) The Moratorium Period

This stage begins with the end of a student’s higher education. This is a grace period the lender gives to the student. Usually, it lasts up to 1 year from the time the student completes their education, or up to 6 months from the time the student gets their first job, whichever happens earlier.

The student is supposed to get a job or start a business venture in order to earn and save money to pay off the first few EMIs of the loan.

4) The Repayment Tenure

In this stage, the student begins repaying the study loan. They pay a small monthly sum called EMI to the lender throughout the repayment tenure of their study loans. The repayment tenure lasts up to the last EMI that is paid to clear off the education loan.

So, these are the 4 stages of a student’s journey of getting and repaying study loans. All the best!