Essential Guidelines to Follow When you Apply for Higher Education Loans

A higher education loan is a financing option that helps you fulfil your dream of studying further, be it learning a special skill, advanced training, or developing academic expertise after your basic schooling and college education. You can use this loan to finance a course of your choice, such as liberal arts, criminal psychology, digital marketing or an MBA. However, to ensure that you choose the right loan and that repayment is convenient, you need to follow certain important guidelines when you apply for these loans.

Here are some guidelines to follow when applying for a higher education loan.

     Check your Eligibility

Be sure to go through the eligibility criteria set by your lender before applying for a Higher Education Loan. Matching the eligibility criteria will increase your chances of approval and help you secure a sufficient amount in minutes.

You can get access to funds even quicker if you apply for a Personal Loan for Higher Education with Bajaj Finserv. As per the basic conditions of the loan, you can apply if you are a salaried or a self-employed person drawing a regular income as a resident citizen of India. Apart from this you need to be 25–58 years old. Before you apply, you can use a personal loan eligibility calculator to check if you are good fit for the loan, and the amount that you will be able to borrow. This calculator checks your eligibility based on your city of residence, age, minimum monthly salary, and existing EMIs.

Clarify Whether your Course or Institution is Covered

Since this is a tailor-made personal loan for higher education, lenders may have tie-ups with certain institutes and may also set limits with regards to the amount that they will sanction to you. For example, these courses could include vocational courses, graduation or post-graduation courses in only selected fields like engineering, management, medicine, hotel management, architecture, accountancy, etc. Thus, it is important to clarify with your lender about the courses that they finance, before applying.

    Check for Collateral Requirement

Typically, personal loans are unsecured. But, because of the high-value sanction in case of a higher education loan, some lenders may ask you to pledge collateral. This means that to obtain the loan you will have to submit an asset as security. This could be a property or even your investment portfolio, depending on the assets the lender accepts. So, it is good to compare lenders and choose a loan with the most flexible terms. Seeking a collateral-free loan allows you to get a high-value sanction without any hassle-free.

See if the Interest Rate is Affordable

The Personal Loan interest rate is something that directly determines your ability to repay it. Hence, before you borrow this loan, it is important to ensure that the interest rate suits your budget. Compare various loan offers based on their interest rates and select the most affordable one. This way you will be able to make timely payments and ensure that your loan is cost-effective.

Know About Repayment Terms

Loan repayment terms are set by your lender and determine the ease with which you will be able to repay the loan. So, try to negotiate with the lender and avail a personal loan for higher education on flexible terms. With lenders like Bajaj Finserv, you can choose a tenor of your choice from a comfortable repayment schedule of 12–60 months.

These are some important tips you should follow if you want to make your borrowing experience more convenient.