Monday, March 5, 2012

Education Loan - Make Your Higher Studies Much Easy

It is not necessary that you are capable to afford all your education expenses because Education Loan finance for your higher study. There exist so many banks and non-bank organizations that provide funds for higher education.

But before raising funds for your education there are certain things that you need to consider.
Do I really need the loan?

* If your family has enough savings for your career needs, that can meet your education expenses, then you need not to borrow any money from anywhere.

* If you are sufficiently capable of getting through the scholarship exams, then there is a possibility that you can meet all your education expenses easily. You need to pay very less if you are a scholar.

* The government-affiliated institutions provide special deduction in fees if you belong to OBC, SC/ST and any other category.

* After analyzing the total cost of your education, if the reimbursements are more then your family savings and neither you are capable to crack any scholarship test, then you can apply for a loan.

Analysing the total cost

It is very important to analyze all the direct and indirect expenses that are will occur on your education. The correct interpretation will help you to raise an appropriate amount of loan for your education.

DIRECT COST

* Direct cost is major amount of money that a student has to spend on his studies. It includes the tuition fees, other fees like maintenance charges and computer charges and the hostel expenses.

INDIRECT COST

* Indirect cost includes of the daily expenses that are equally important as direct expenses. The money spent on books and transportation comes under indirect cost. You can also add your cell phone bill and private tuition fees, as they are some of the essential personal expenses.

EDUCATION LOAN PROCESS

There are so many education loan lenders who even provide the education loan facility online to students. Normally the loan process is very long, but if you present yourself with all the necessary and required documents, then it can help you to get the loan with smoothly. KYC is the most important document that is required in the loan process.

KYC

Know your customer. The KYC is necessary for the identification of the borrower and also it gives all the financial details about the client. KYC documentation is compulsory for the verification process. So one must be careful while submitting the KYC documents.

PROCESSING FEE FOR EDUCATION LOAN

There are certain kinds of charges that you need to pay while applying for an education loan like

* Document preparation fees

* Title search fees

* Cost occurred on lawyers

* Cost for general validation and verification

* Underwriting costs

GUARANTORS

The education loan providers generally require a guarantor who can take the responsibility to repay the loan, in case the student fails to repay the whole amount of loan borrowed.

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