The Best Education Loan Rates For Students And Necessity Of Comparing Interest

Students cannot pay interest for their loans and in fact, repaying the borrowed amount itself is an uphill task for them. At present, no banks or other institutions are offering interest free loans and therefore; students should try to find the lowest interest for their education loans. There are banks, which allot money for educational purpose and these banks may offer the most attractive rate of interest for the students. Higher education is important for students and verifying Education Loan Rates is more important for them, since they cannot afford higher interest, since they are not using the money to make business profits. Perhaps, after joining the jobs, they may be able to repay their loans. In most of the cases, banks offer only secured loans and they are not worried about the repayment of educational loans. The governments insist banks to provide unsecured loans for educational purpose, with the lowest possible lowest interest rates. 

Education Loan Rates: Education Loans Becoming Affordable

Education loan rates depend on whether you are studying in India or abroad, the education loan amount, the time period of repaying the loan and the course for which the loan has been taken. Students applying for education loans to study in premier institutions or colleges are offered with lower education loan rates.

Because of the increasing fee structure of higher education, education loan is becoming popular day-by-day. While applying for an education loan do a study of the education loan rates and stay updated with the financial market trends that will help you get the loan at best possible rates.

The irony in the education loan rates is that the students will have to give away more EMIs due to higher education loan rates if the institution that they want to study is not amongst the premier institutions. On the other hand, it is possible that they would get placed on lower packages from such institution. Education loan rates comprise of two types of interest rates. One of which is the fixed rate of interest and the other is floating rate of interest. Considering the present fluctuating economic environment it is advisable to go for loans with floating education loan rates.

Education loans in India have become a very popular method of funding higher education with the growing increase in the cost of education. Higher cost of education in the fields like engineering, medical and management have compelled people to finance their child’s education in India. Most of the public sector and private sector banks offer educational loans.

There has been a latest discussion that the Indian Bank’s Association will soon come up with widespread ratings of the institutes or colleges to guide banks in making the right decisions while granting education loans.

Summary: One should always keep in mind that the amount that is paid against the amount of the education loan rates will be considered for deductions from your taxable income. The lender starts paying the EMIs till the time the duration of the loan exist.