Bank Loan Tips: Before taking a loan, pay attention to these 4 things, otherwise big trouble will arise...
Nowadays a lot of money (bank loans) is spent on educating children. Saving enough money for higher education has become a very difficult task for a common middle-class family. In such a situation, most of the parents take education loans. Education loan is a great help to meet the expenses of children's education, but many times we find it difficult to repay the money taken from the bank. Therefore, education loans (Education loan interest rate) should be taken very carefully. To ensure that an education loan does not become a burden on your head, some things must be kept in mind before taking this loan.
If you take a loan in haste without proper investigation, then you may have to face problems in the future. The advantage of taking a personal loan after thinking thoughtfully and thoroughly will be that you will not only have to pay less money in the form of interest but there will be no problem in repaying the loan.
It is not wise to apply without adding expenses.
There are many types of expenses involved in taking admission to any course. This includes the amount spent on course fees, a hostel or living expenses, books, laptops (calculate educational expenses), etc. Therefore, before taking a loan, all these necessary expenses should be added. It is not wise to apply for a loan without factoring in the expenses as this may leave you short of funds for further studies.
Correct selection of repayment period is important
Apart from the course period, banks also give an additional moratorium time of one year to repay the loan. When you start paying EMI (Loan EMI), you get a repayment period of 15 years. Interest starts from the day the loan is received. The bank can extend the moratorium period (loan repayment period) by two more years. While taking a loan, the repayment period should be chosen keeping all these things in mind.
Correct information about interest rates
Education loan interest rates depend on factors such as the course, institution, past academic performance, credit score for the loan, and security of the student/co-applicant. There is also a difference in interest rates of different banks and financial institutions. Therefore, before taking a loan, one should get proper information about the interest rates of all the banks.
Future earnings estimation
It is important to know the placement rate of the course and institute to which you are admitted before taking an education loan (Income and EMI calculation). By doing this you will get a rough idea of whether you will get a job after the course or before. This will also give an idea of the salary. Having an idea of placement and salary will help in calculating monthly income and EMI accordingly. Estimating future earnings is also very useful in choosing the loan tenure.
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