Importance of education loan in Indian society is increasing with every passing day hence, for a good selection it is important to know the product very well.
Despite recessional blues are still in the picture but still people can't write-off the importance of education loans in Indian scenario. Simply because these are the loans that vouch to finance the higher education of aspirants who want to add the best academic degrees to their kitty and become a 'learned citizen' of the country.
However, saying is much easier than job done. Securing
education loan can be an arduous task if one does not follow procedure accurately. The first and foremost job is to identify the required amount. Yes, zeroing in the precise amount is quite important since availing more loan than needed only adds up to his problem later on (higher interest rate, installments).
The very next thing to decide upon is --- EDUCATION LOAN INTEREST RATE!!
Interest rate is an extremely integral part of any loan product. Almost every loan aspirant, without fail, make it a point to drop his eyes on the interest rate column before actually availing it. Quite frankly, rate of interest is one factor that plays a determining role in the whole procedure.
Education loan interest rate is available in two versions -
>>Fixed Interest Rate
>>Floating Interest Rate
Fixed education loan interest rate is the rate which stays same throughout the repayment period irrespective of fluctuations in the standard interest rates. While the other version, floating interest rate is riskier since it directly reflects fluctuations in the standard interest levels in the repayment tenure.
INTEREST RANGE
Most of the lending institutions offer interest rates in the range of 10-13.5 percent. However that is subjected to what kind of bank or lending authority selects for availing loan. Chances of getting a cheaper education loan are high in public sector banks.
KOTAK MAHINDRA BANK EDUCATION LOAN
Not many people trust private sector banks when it comes to seeking monetary assistance in form of a loan product. Simply because they percept private banks as the money-mongers who look for every opportunity to charge customer for anything and everything. But the perception is fast-changing. More and more people are now turning to private banks for loan products. Kotak Mahindra bank is one of them.
Kotak Mahindra Bank Education loan is rated as one of the best in the loan product conceptualised for study purposes. The loan product facilitates the higher education aspirants in the best way.
Point to Remember – Financial assistance in form of education loan for courses in India can go to a maximum of Rs. 7.5 lakhs. The same limit in case of studies in foreign lands is up to a maximum of Rs. 15 lakhs.
Added attraction- Since these loans are mostly taken for minors hence, the lending authorities always ask for a guarantor (as co-applicant) or a collateral (security).
Waiver Period
Another most important thing to watch out in an education loan deal is the waiver period. Certainly it is not possible for any student to straight away start repaying the availed loan. Simply because it is not possible for a student who is just out of his course, to get employed anywhere unless he is already placed. Hence, it is extremely important for the borrower to have his calculations right. Moreover, do the lender provides such option under the contract or not.
Hence, any borrower who have been looking out for the Kotak Mahindra bank education loan or from any other lending authority better keep the above-discussed point in mind. Since these point can help a loan aspirant immensely.
