6 Myths about Education Loans You Need to Know

We generally research about things when we anticipate getting them. Assuming we need to purchase another mobile, then, at that point, we will go on the web and do as much exploration about the brand and the model of the mobile we need to purchase. Similarly if it is a vehicle, then, at that point, we will do likewise there too. Likewise, with regards to education loans, we will need to do as much research as possible so we can get the most ideal arrangement.

However, we get to hear different things about education loan from unverified sources that can discourage many from applying for them. It is always better to get verified information about it.

Listed below are 6 such myths related to student loans that you need to be aware of:

1) The Loan Amount is Limited to 20 Lakhs

When looking for educational loan, you will want a loan that will cover all the major expenses during the completion of your course without causing any complications. That being said, most lenders offer student loans don’t have a particular cut-off, and it relies upon your particular prerequisite. The base credit sum is Rs.1,00,000 and this sum can go up to Rs.1 crore. So assuming you need a credit sum that is over 50 lakhs, you will actually want to get that without any problem.

2) Collateral is a Must

The principle concern with regards to applying for an education loan is the security that you need to give to get the loan. The house you purchase is the insurance for the home loan, the vehicle you purchase is the guarantee for the vehicle loan. Notwithstanding, it’s distinctive on account of education loans. There are numerous financial organizations that offer you a loan without giving any security. So assuming you need to apply for a loan, you don’t need to stress over having to keeping anything as security.

3) Eligibility Criteria is Tough

Different loans have different criteria for eligibility. Your month to month pay, your credit rating, your legal record are a portion of the things that are checked before you become qualified for a loan. With regards to education loans, the standards aren’t so convoluted and for the most part concerns your age, your citizenship, the accreditation of the organization to which you need to apply to and things like that.

4) Covers Only Tuition Fees

At the point when you apply for education loan, you will apply for a sum which would be adequate enough to cover the necessary costs. Education loans furnish you with a sum enough to cover other than your tuition fees. It will cover your study material costs, exam fees costs and medical expenses as well.

5) It can used to cover other expenses

The main thing about student loans that you should be aware of is that it only covers expenses related to your education. If the money is used to cover any other expenses apart from those related to your education, you could fall short of funds when required and could hamper your career. So, it is better to avoid using these funds for any personal expenses.

6) You have to repay the loan immediately

People are usually concerned with the repayment when they opt for education loan. It is beneficial to keep in mind that once the loan amount gets disbursed, the repayment does not begin until the completion of your course. Some lenders do opt for a partial repayment during your course, however, full repayment can be done after your course is completed. You get a moratorium period after which you can start the education loan repayment. To get a better idea, you can access the education loan repayment calculator from your lender’s website. These are some of the myths related to education loans. You can get in touch with your lender to know more about such myths.