Pursuing higher education from reputed institutes is a dream for many. Taking an education loan helps in financing them. It covers all the expenses of educational needs. It has a lower education loan interest rate and a flexible repayment policy for students’ convenience.
Now, there are different types of student loans scheme catering to all kinds of students. It is beneficial to understand them before applying for one. You may get the best deal on the interest rate by doing so. Following are some of them:
Domestic loans: These are for the courses pursued within the country. The general student loan eligibility criteria are age, course type, university, collateral, etc. You can avail the loan for government-approved courses only. It has lower education loan interest charges as compared to overseas studies. It covers all the educational costs like tuition fees, hostel charges, stationery, etc.
Study abroad loans: The study loan for abroad allows you to pursue studies overseas. You must clear the entrance exam of the concerned institute and give an admission letter. Once you meet the conditions, lenders process the loan. It covers all expenses relating to travel like VISA, accommodation, etc., besides the study expenses. It has a higher student loan interest rate owing to added costs.
Undergraduate & Graduate loans: It is a loan type for those pursuing or completed secondary education. It lets you complete three to four years of an undergraduate degree. The graduate loan requires the students to complete the undergraduate degree before applying. It is a professional course of two to three years.
Secured & Unsecured loans: You can avail secured education loan for up to Rs. 4 lakh. A loan amount exceeding this mark needs collateral from the lender. Thus, making it unsecured. You also need a co-borrower to apply as you do not have an income source. It is to ensure lenders’ security. However, the loan gets sanctioned in your name, and you repay it after course completion.
Career loan: You take this loan for training and skill development programmes. It is designed to prepare you for a job. Your income gets considered, along with other criteria for this loan. It comes with the same convenience, flexibility, and repayment terms as other student loans.
Loan for parents: It is given to the parents of the child without any collateral. It lets them pay for their child’s educational costs. These expenses include the tuition, library, laboratory, hostel and other fees. Even the relatives and guardians of the child can opt for this loan type. They can use this for studies ranging from elementary to post-graduate.
These loan categories cater to different educational needs. You can select them accordingly to get the best student loan interest rates. It is best to check with other lenders for their specialised schemes as well.
