3 effective ways of getting a lower interest rate for your study loan

 With today’s fast-paced world, there is a lot of competition in each and every field. In order to make a strong impression in front of companies, you need to have a strong academic background. This is why many students plan on pursuing their further studies. This boosts their chances of securing good jobs with decent packages.

However, pursuing your further education is no easy decision. This is not just about studies, but also about the expenses. Education expenses can sum up to quite a large amount, even more so if you are thinking of pursuing an education abroad.

The most common way to deal with these expenses is to apply for a study loan. However, a lot of borrowers are worried about the high interest rates that lenders would charge. But do not worry, there are ways you can get lenders to offer you lower interest rates too. Here are 3 ways you can effectively lower the interest rate of your study loan:

1.    Do not wait for the moratorium period to end

There are many borrowers who rely on the moratorium period since they do not have to start repaying the monthly installments for their study loan just yet. However, many of them are unaware of the fact that not waiting for the moratorium period to end is actually more beneficial. This is because even though you are not liable to start repaying your loan during the moratorium period, the interest on the loan will still be getting accumulated. Rather than let this happen, start repaying your loans by not using the moratorium period. This way, you not only clear the loan faster but also save money by not letting the interest keep increasing with each installment.

2.    Make use of your academic scores

Financial institutions are always eager to offer study loans to those students who have performed well in academics. This is quite understandable since such students have a much higher probability of completing their graduation with flying colours and then getting job opportunities at reputed firms. This means that they would not find any difficulty in repaying their loans. If you have good academic scores, you can use this to your advantage while applying for a study loan. You can negotiate with lenders to offer you better loan plans with bigger loan amounts at lower interest rates!

3.    Use a short repayment period

Most students prefer to choose a longer repayment tenure since they find it much easier to manage their budget. With a longer repayment tenure, the monthly installments would be smaller amounts as compared to the installments in a shorter tenure. This makes it easier for the borrower. But you should also know that you can save a big chunk of money by clearing your study abroad loan in a shorter repayment tenure. This is because the interest of the loan is added with each installment, and hence clearing the loan in a short repayment tenure means that you are clearing faster as well as saving on the interest by cutting down the number of monthly installments.

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