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Aaryan Balasubramanium

Aaryan Balasubramanium

Asked on 29 June, 2019

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

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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.

Harini Balasubramanium

Harini Balasubramanium

Asked on 29 June, 2019

What is repayment tenure and moratorium period?

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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.

Paridhi Rathore

Paridhi Rathore

Asked on 29 June, 2019

What costs or expenses are covered under student loans?

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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.

Aarav Chatterjee

Aarav Chatterjee

Asked on 29 June, 2019

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

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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.