5 Myths About Educational Loans

Meeting education expense in today’s scenario has become very difficult for parents as they always want their kids to get education from the best institutes within their area. This may however not always be possible.

Today education loan has eased the worries of the parents as well as students. Whether you want to study abroad or in your own country you can easily get a loan for your education. All you need is a guarantor and full documents, and you will be eligible for a loan.

However, you will come across some myths about education loan. We will help you clarify these myths and also provide useful tips for deciding on the right education loan.

  • Your scores do not matter in getting an Educational Loan.

Some of us think for getting an educational loan you need to have a good educational score which is wrong. You need to have got admission in an educational institution, you should have a guarantor for your loan and your academic scores should be above a basic criteria.

 

  • You are the top scorer so what is the need of securing the loan through a guarantor

Being a top scorer in the class does not give any assurance to the Bank for processing your loan. Bank does not discriminate amongst students only on the basis of scores. They will still need a person who can give a guarantee for you, and your documents should be in order.

 

  • Getting admission even at the top institute of the world will not let you get any discount.
    Getting admission into a top college may help you get your documentation in order in a shorter time. However this does not mean that you will get a rate discount because of the course or institution.

 

  • Having an education loan does not hamper your scholarship criteria.

If eligible for a scholarship you should go ahead and apply for it. Having an educational loan at no point will hinder your scholarship. Rather it will lessen the burden of monthly interest of your educational loan.

 

  • Banks could not sponsor expensive course abroad.

A majority of  Nationalized Banks in the country offer loans up to Rs 15 Lakhs only.  Therefore, while applying in an institution you should keep in mind your own budget and make a choice accordingly.