Best ways to get a rate of interest on your education loan

 It is very important for students to pursue their further education, as today a Bachelor’s degree is not considered to be enough. There is a lot of competition in every industry, and this is why students need to have an excellent academic background in order to secure good jobs out there.

Not only this but even where the degree is pursued from matters a lot when you are giving an interview to any company. This is why a lot of students try to get admission in one of the top universities to pursue their preferred courses. Now an important thing that you should keep in mind is that your academic qualification is not the only thing you should be worried about when it comes to getting admission in a good university. You also need to have strong finances in order to tackle all the academic expenses.

The most common way to do this is to get an education loan, which most students do. But there is a lot to think about when getting a loan too, as each lender will offer a different loan plan. If you play it smart you can easily get a lower education loan interest rate. Here’s how:

Never forget to compare the different lenders

There are a lot of different financial institutions that offer education loans to students. Please note that banks are not the only financial institutions that you can choose from, you can also go for Non-Banking Financial Companies (NBFCs). You can compare all these lenders and then finally choose one that offers you a loan with the lowest education loan interest rate.

Try going for a shorter repayment tenure

This is not something that most borrowers do, but it could prove to be very beneficial. Most borrowers take a long repayment tenure as they find it much easier to pay back the loan in smaller monthly installments. But paying back the loan in a shorter tenure is better as they save on the education loan interest. How? The interest of the loan gets added on each installment, so when you clear the loan in a smaller amount you end up saving on the total interest.

Keep a positive credit record

Any borrower who wishes to take a loan needs to have a good credit score. This is because every lender checks their applicant’s credit score before approving their loan application. This is why it is so important to have a clear credit history. Also, lenders feel more confident about giving loans to borrowers with good credit scores and hence offer them lower education loan interest rates too.

Maintain good academic grades

It is very important for you to maintain good academic grades not just for getting into a good university but also to get a good education loan. When lenders see a student having a good academic record, they try and offer good loan plans with lower education loan interest rates in order to entice them in taking a loan.

We hope this article has helped you, all the best!