Why students are opting for education loan for MBA in India.
Feb 22 2019 by vishal tambe Category Loans Views
Study Loan is a type of loan designed to help students for its post secondary education and it associated miscellaneous fees like book and living expenses.
Education is extremely important for students to succeed in life and climb up the ladder of corporate hierarchy. Thus, a number of youngsters are trying their level best in order to obtain higher education from a premium institution. However, the costs of education have increased greatly in recent years; therefore, people are finding it difficult to cover their educational expenses without any outside help. Hence, there are a number of students who seek to opt for Education Loans for Students through a new-age financial institution or a traditional financier. However, opting for financial assistance through a new-age financial institution is better; because the interest rates charged by the banks and NBFCs (non-banking financial institutions) are way lower than the ones given out by loan sharks. Other than that, there are a lot of benefits of opting for these loans, and a few of them are here as follows:
- An education loan covers a number of educational expenses such as the costs of your tuition fees, college fees, living expenses, travel expenses, etc. Other than that, the study loans even take care of the other miscellaneous expenses that you might incur while pursuing your educational degree.
- An Education Loan for MBA helps you to take care of your educational expenses on your own. Therefore, you don’t have to depend upon anyone else for financial assistance. Because, many-a-time, parents often exhaust their life savings in order to sponsor their child’s education.
- The repayment of an education loan is done in the flexible form of EMIs (equated monthly installments). These EMIs are calculated on the basis of the interest rates charged by the financial institutions, repayment tenure opted by you, and the principal amount that you borrow.
- The financial institutions even provide us with free-of-cost online tools such as an EMI calculator. These tools are provided by the financial institutions on their online websites to help the lenders with their education loan for MBA. These calculators help the people to compute their installments and plan out all of their previous and current debts in advance.
The financial institutions have set eligibility criteria that have to be met by the people in order to make use of an Education Loan for MBA, and these criteria are here as follows:
- You need to be a citizen of India in order to make use of monetary assistance. Further, there is also an age limit set by the financial institutions for you to make use of the loan amount, and it is 18 years to 35 years (for most of the financial institutions).
- The financial institutions also ask you to provide with an earning member of the society as a co-borrower. This co-borrower can be any of your family members such as parents, siblings, etc.
- The financial institutions also check your course, the country of choice, letter of confirmation from the university, educational background, etc.
- Further, the financial institutions also check your co-borrower’s credit score, history, and income. This is done by the banks and NBFCs (non-banking financial companies) to ensure that the education loan for MBA will be repaid easily.