The skyrocketing expenditures of higher education obviously look exorbitant at the very first glance. Also, education from a premiere institute is every individual’s dream. Unfortunately, some students are not able to pursue because of fund shortage. Education loans have come up as a magic potion for all the commoners who have dreamt like you. The significance of having a higher education can never be understated. The high salaries and the best jobs are offered only to those who are well educated. Student loans have made easy for the students to attain a prominent position in big and reputed companies.
Education loans without collateral are a popular choice since because the applicant does not have to present any kind of asset as a security. These are tailor-made as per varied needs of applicants and guarantee best possible financial support. Such types of loans come with higher rate of interest and the amount may also be little less than the loans with collateral. It is rightly said that “something is better than nothing”, education loans without collateral has the ability to fund maximum percentage of your course. In some cases, it may turn out to fund the entire course that has been opted.
Gone are the times when people had to wait for their loan approval for long times and present numerous and collaterals as a security guarantee. Today, the processes have been made simpler so that people can get their loans sanctioned in shortest possible duration. A student can use these loans to pay his tuition fee, lab fee, accommodation fee and also purchase study materials.
Types of Education Loans
Broadly speaking, there are two types of education loans. The loans rendered by government authorized bodies and the ones by private banks.
• Government aided student loans: These loans are provided at very low interest rates and thus students can repay them easily. But then you can only apply for a limited loan amount. In case you are planning to go for higher studies abroad, the funding might not be sufficient.
• Student loans from private banks: Private Banks allow you to apply for desired loan amount without any hassles. Thus, you will be able to bear all the expenses during your studies without any difficulty.
The student is liable to repay the education loan as soon as he gets a job and repayment installments as well as duration are decided in advance when applying for the loan. Generally, the repayment terms are decided at the comfort of a loan applicant. Ranging from one year to two, five or even ten years, the repayment duration can be decided between the bank and the applicant.
