Are you in need of an education loan but are worried about its rejection? Well, read on to know about a few tips that would ensure that your application is approved without any difficulty and you get the loan you are looking for.

Be Careful About the Course You Choose

You must opt for a course that would get you a settled career. Lenders often find it easy to sanction the loan to those who have opted for courses that can lead them to settled and paying professions. This is the cushion any lender looks for before sanctioning anyone’s application for an education loan. So, the right course will not only brighten your chances of availing of the loan but would also guarantee you a fruitful career. 

Choose Your Institution with Care

Lenders are also interested to know about the institution where you would study. Loan applications of those seeking admission in institutions of repute get through easily in comparison to those seeking admission in average institutions.

It is also important to check whether the institution is genuine and not facing any trial or investigation. Doing so will not only save your effort and money but would also save you from myriad problems. So, a thorough recce about the institution you want to enrol in is an absolute must.

Which Bank Would You Go For?

Quite a few banks offer education loans in India and abroad. The applicant must opt for a bank that would offer the best moratorium period, interest rate, and terms to repay the loan. It is also important to check whether the bank offers the option of early repayment. You would do well to opt for a bank that offers favourable terms and conditions than the one that offers the most finance. The applicant should also check if he can pay EMIs in advance or make part payments towards the loan. One must inquire about all the service charges that are applicable on the loan he is applying for before zeroing in on any particular bank. 

Always Opt For Instalments

Banks levy interest on the money that it disburses. Mostly the applicant is required to pay for the course each semester or each year. It would therefore be a good idea to opt for a loan as and when the need arises. This would ensure that the interest accumulated will be much less. So, rather than availing the entire loan at once, it would be a better option to avail it as per requirement.  

Remain Alive to Tax Benefits

The applicant can avail of the tax benefits under Section 80E of the Income Tax Act on the interest he pays on his loan. However, to avail of this benefit, the loan must be taken from an Indian scheduled bank or a gazetted financial institution. It should also be kept in mind that the deductions are available only for the initial assessment years and seven years after, or till you pay off all the interest, whichever is earlier.  So, if you are opting for a longer loan you must know that you will get the tax benefit only for the first 8 years.

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