A checklist to follow while getting an education loan.

Education loans have become more accessible for students in recent years. They can beget easily, seamlessly, and swiftly. Students often take education loans to study further, be it to study in India or abroad. But they find it difficult to repay their education loans after completing their degree. We believe that students should think carefully beforehand while taking education loans to not default on their repayment. To help students in acquiring the most suitable education loans for themselves, we have come up with a checklist.

This checklist will help them to get an education loan of the right principal amount from the right lender at the right interest rate levied on it.

1) Do I satisfy the eligibility criteria to get an education loan and have the required papers?

Check whether or not you fulfill the eligibility criteria to get an education loan. Collect documents that prove your eligibility to get an education loan. For instance, keep your ADHAAR card, PAN card, your academic result cards and certificates, your university admission letter, and so on. Once you collect the documents that fulfill the eligibility criteria, move to the next point in the checklist.

2) Have I compared different lenders and their services?

Compare different education loan lenders based on the quality of services they offer. Read reviews about lenders and shortlist a few that provide the best services to students. Then compare the services of those shortlisted lenders. Find out the maximum amount they will lend you, the value-added services they will provide, and so on. Select a lender that seems the most suitable to you and move to the next point in the checklist.

3) What expenses do I want the education loan to cover?

You will need money to pay your course tuition fee. If you intend to move to a different city from your hometown, you would need money to pay the travel expenses, living and boarding expenses for the duration of the course, the mess expenses, the exam fee, library fee, laboratory fee, books, and stationery expenses, and so on. Know the expenses you would want the education loan to cover and let the lender know about it. Then move to the next point in the checklist.

4) Do I need value-added services?

You may need to use the value-added services if you intend to study abroad. Some universities ask the shortlisted candidates to show proof that they have funds to pay the course tuition fee. Some countries ask students to show that they have funds to stay there for a year and look after the expenses. Only then do universities offer admission and countries offer student visas respectively. You may also need money to appear for entrance tests. Ask the lender if they provide the value-added services you need like the certificate of availability of funds, pre-admission loan, pre-visa loan, bridge loan, and so on.

So, this is the checklist to follow while getting an education loan. Please consult a financial advisor to gain a deeper understanding of what you want your education loan to do. All the best!