Tips for Parents Taking Education Loan for kids
Providing education to their children is a crucial goal for all parents. However, they are often unaware of the spiralling cost of education, especially higher education, which can take a toll on a child’s ambition. Self-financing your child’s education is the best option. But sometimes, you may not have the required funds to meet the entire cost. This is where personal loans for education come to the rescue.
Personal loans for education are targeted towards parents who require additional finance to cover their child’s education costs. It is a combination of saving and investment that ensures that your child’s financial needs are taken care of even in your absence. You can easily apply for such loans through personal loan apps for quick disbursal.
With the spiralling education expenses, there has been a surge in demand for education loans. Various non-banking financial institutions extend these loans to parents so that they can afford to send their children to good institutes for higher studies.
Tips For Taking The Best Personal Loan for Education
Due to a plethora of child education loans in the market, choosing the most suitable plan according to your child’s needs can be quite challenging. Here are four tips to avail the best deal available.
1. Compare different offers
As the demand for education loans is rising, many lending institutions have introduced different education plans according to your needs. So, before you make your decision, you must check with multiple lenders and compare the personal loan interest rates and repayment options offered by them. Read the policy documents thoroughly and understand the terms and conditions in detail.
2. Check the interest rates.
Every lending institution offers a different education plan with varying rates of interest. These rates usually depend on various factors, such as the type of course, institution, credit score, student’s academic performance, and the country in which the child wants to study. Further, education loans are both secured and unsecured. This means that the interest rates may vary based on the type of loan you choose.
3. Decide the right loan amount.
Determining the right amount of education loan for your children in advance is critical in providing a good impression to the lenders and increases your chances of availing the loan. Several factors, such as type of course and institute, inflation rates and education costs, can help you decide how much amount you need to obtain to secure your child’s future.
3. Repayment options
The next tip to secure an education loan with attractive deals is to look for the repayment options. The repayment policy for education loans is different from that of other loans. You are not required to pay the EMIs immediately after receiving the loan. Actual payment of monthly instalments starts after the end of the course or semester. In addition to EMIs, parents also have the option to pay a lump sum amount at regular intervals. This way, they can reimburse the entire loan a little early and reduce the total interest liability. Faster the repayment of the loan, the less expensive it is for you.
Although there are a large number of instant loan apps available in the market, always choose the best one which suits you. Apart from this, parents must do systematic planning and invest in affordable education loans to provide their children with the best education possible.