Master the student loan process.

Since the past, there has been a great rise in the number of students who look for financial solutions from banks and NBFCs. Applying for a student loan is seen as more preferred by those who don’t want to take an entire chunk out of their savings. While there are quite several students who have made the most of it, there still stand a number of those who haven’t handled their loan well enough.

If you are still in the process of applying for the loan, here are a few ways you can master your loan process

1) Run a thorough research

Like everything else, researching about educational loan is the most important in the student loan process. When you visit the websites of multiple lenders, you will have a better idea of your loan. Make sure to find out more about how the interest rate of study loans works. A lot of times in the student loan process, students ignore the importance of figuring out their interest rate and how it is calculated during the repayment.

2) Approach more than one lender

After you feel you know decently well, it’s time to approach lenders. You don’t have to contact every lender available, just the ones you shortlist after you visit the websites. If you have friends who have had educational loan, you could approach their lenders as well. The main idea of approaching different banks and NBFCs is that you get the one that would suit you and your profile best. If you don’t want to visit the branches you could simply apply online for education loan and just like that initiate the student loan process.

3) Setting your loan plan

This is the most important part of your student loan process and is important that you do not rush through it. When you are setting your plan, make sure you calculate all the important expenses. Keep in mind that multiple lenders will help you cover for expenses besides your college tuitions. You can include expenses for accommodation, travel, college supplies, etc. Although see to it that you don’t go overboard and stick to only that which is important.

The different websites of lenders have calculators that can help you with setting the loan amount. Like the EMI calculator help you with figuring out what EMI schedule works best for you. In this calculator, you have to put in your loan amount, interest rate (which you can take an approx. of 11-15%) and tenure. You can try different inputs to see the one that suits you.

4) Getting your documents together

If you want your student loan process to carry out smoothly, maintain a list of documents that you need to submit. This way, when it’s time for the application and/or post-sanction documents, you have everything in place. Now you can easily get the loan and not worry about a delayed loan.

5) Making timely repayments

This is where your EMI calculator comes in play again. You can easily find an EMI calculator that gives you an exact chart of your EMIs. Here’s a pro-tip: when you make timely repayments or pay an instalment early, your lender may decrease the interest rate on the following year of your loan tenure. Hope this helps you master the student loan process so that you can make the most of your study and enjoy the benefits of having a good credit score.

All the best!