The cost of education has shot-up immensely in the last few years and you need to be an informed individual in case you are a parent or student seeking loans. Education loans at times could be pick ticket loans and a small difference could actually mean much. Here are a few things that you must look for in an education loan.
A small difference of 0.25 per cent or 25 basis points can mean a lot for an education loan. It's best to look for the interest rate before you proceed further. Public Sector or government banks could offer you a super deal and as always you may find State Bank of India the best. Do not forget that girl students get a little discount when it comes to education loans in India. Look for other things as fixed and floating rate. It's best to opt for a floating rate of interest.
2) Size of the Education loan
The size of the loan would depend on the bank and the type of scheme. For example, IDBI Bank offers a loan of above Rs 4 lakh and up to Rs 7.5 lakh for non vocational courses. Similarly, for the Chartered Accountancy Course the bank offers an amount of Rs 3 lakhs as Education loan.
3) Period for repayment
Now this would differ from bank to bank and depending on the course. Various banks provide repayment terms based on the size of your loan. You need to see the best one that is suited for you.
4) Processing and miscellaneous charges
There are various other charges that are applicable on an education loans. You need to sudy charges pertaing to processing fees, early closure of the loan. There maybe banks that offer free processing fees for education loans for studying in India, while for studying abroad there maybe charges that re levied.
5) Look for freebies
Some banks may also offer you freebies like free debir card or an insurance cover. So, do not forget to look for freebies in an education loan.
As mentioned earlier, the first thing that you shoud look at is interest rates. PSU banks may score on this count, though you may have to do some running around to get your loan approved. But, in the end it;'s worth your while.