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What are some important parameters to compare before taking education loan?

Asked 2019-06-29 07:21:11 by Aaryan Balasubramanium

Answered by NewsBytes

After deciding on the course, college, and loan amount required, you must conduct detailed research on education loans offered by various banks. You must compare the interest rates, repayment tenures, processing fees, the scope of coverage (tuition fee, accommodation, books, etc.), and interest and repayment terms among other parameters. One should also check if collateral or guarantor is required for the loan offered.

What is repayment tenure and moratorium period?

Asked 2019-06-29 07:21:11 by Harini Balasubramanium

Answered by NewsBytes

Students should repay education loans after the completion of their course. The duration within which one should repay the loan is the repayment tenure. The moratorium period or holiday period is the period after which repayment starts. Repayment begins after the moratorium period expires or when the borrower secures a job, whichever is earlier.

What costs or expenses are covered under student loans?

Asked 2019-06-29 07:21:11 by Paridhi Rathore

Answered by NewsBytes

Generally, education loans cover expenses like: 1) Tuition fees and hostel expenses; 2) Exam, library, and lab fees, if any; 3) Refundable caution deposits; 4) Travel expenses; and 5) Books, uniforms, and other things essential for the course.

What happens if a student can't repay education loan?

Asked 2019-06-29 07:21:11 by Aarav Chatterjee

Answered by NewsBytes

Before taking an education loan, students must know the consequences of defaulting on repayment. It will hamper their future credit opportunities, create problems for the guarantors, and the collateral offered will also be at stake. One should have a backup plan for repayment if they don't get a job or fail to repay after the moratorium period to avoid trouble.

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