Quality education is crucial to a successful career in today's competitive job market. However, most students struggle to get into their dream universities due to a funds shortage. Savings hardly cover the inflating cost of prestigious institutions. Moreover, borrowing from friends and family brings you only so far. The only feasible solution is to turn to reliable institutions like banks in such cases. Now, you get different credit options from a bank.
Some have no limitations on usage, while others are meant for a specific purpose. Loan for Students falls under the latter category. It assists in financing your higher education. This means you face no restrictions in applying for your desired course due to insufficient funds. The lenders finance your studies and handle all educational costs. Consider these benefits to understand its purpose thoroughly:
Flexible Repayment
Unlike other Loans, the repayment starts after the moratorium period under Student Loans. This means you repay after the course completion when you have a job. You initiate repayment after six months to one year of finishing the study programme. As a result, there is sufficient time to establish an income source. Moreover, the repayment term ranges between five to seven years. It offers flexibility to spread the installments.
Extensive expense coverage
Studying at a university comes with a range of expenses. A Bank Personal Loan fulfills every possible cost. Some prominent ones include tuition fees, travel, accommodation, food, stationery, library fees, etc. Since these expenses get covered, you need not arrange additional funds. The Loan provides a complete solution to fund your education without leaving any cost. Hence, it is best to ascertain the total cost before applying.
Self-Independence
The best part about applying for a Student Loan is building a financial discipline. Since you pay for your educational expenses, the burden on your parents reduces. They save funds for their retirement and other financial goals. Meanwhile, you self-fund your studies without any help. This sense of responsibility brings seriousness to excelling academically and securing a fulfilling job.
Reasonable Interest Rates
Banks use the Marginal Cost of Lending Rate to determine the interest on Loan for Students. Besides, they also check their policy to offer a competitive rate. Compared to other credit options, the interest rates are lower for Education Loans. This is true for female students, who get a concession of 0.5%. The eligibility parameters also influence the interest charged to a great extent. It is best to boost your profile to attract a favorable interest rate.