With the advancement in technology securing funding for education has become quite accessible. This accessibility is possible because of the availability of online education loans. These loans help fund one’s education. Hence, many students prefer these ed loans to fulfil their dreams. So, if you want to know everything about education loans this article can be a great help.
Benefits of Online Education Loan
Education loans offer multiple benefits apart from just funding your education. Understanding these benefits helps one to clear their goal of taking these loans. Some of the considerable benefits of these loans are mentioned below.
Higher Amount of Loan
Many online lenders offer education loans with a minimum amount of Rs. 50000. This loan will include various charges such as tuition fees, hostel charges, books, etc. So, the loan amount required by a person can be subject to eligibility and cost. Research well about different lenders and the amount they’re offering and then choose a suitable option.
Lower Interest Rates
Online education loans also come with attractive interest rates. These rates are repo rate-linked interest rates. This means it is the rate which is directly linked to the Repo Rate set by the Reserve Bank of India (RBI). So, if the repo rate increases, the repo rate linked interest rate will also increase and vice versa.
Pre Admission Sanction
Another significant benefit of an online education loan is that they are sanctioned before admission. This sanction is done based on one’s profile, where they check whether the student can repay the loan. Also, it helps students to avail the funds in advance and pay the admission fee on time.
Quick Disbursal
When applying for an education loan online one also gets to enjoy the benefit of quick loan disbursal. Most online lenders take around 15 days from the date of receipt of an application for disbursal.
Avail of a Variety of Courses
Education loans are offered to deserving students who get admission in well-reputed courses such as engineering, management, etc. These loans can be availed for any level of education ranging from graduate to postgraduate.
How to Apply for an Education Loan Online
Applying for an education loan has become quite easy with the introduction of online education loan portals. Let’s understand the process of applying for education loans online.
Banking Websites
Various banks are offering education loans on their websites, both in the country and abroad. One must check their terms and eligibility criteria to see if their terms match your requirements or not. Choose the one that perfectly matches your needs and offers easy eligibility criteria for quicker approvals.
Banking Apps
Other than banking websites, banking apps offer education loans at competitive interest rates. People prefer these apps due to their quick application and disbursal processes. It usually takes around 3 days to a week to disburse the amount to your bank account. So comparing different apps and their conditions can help choose a suitable option.
Financial Websites
Other than banking websites, one can also consider various financial firm’s websites for education loans. Various reputed financial institutions such as Tata Capital offer these loans at competitive interest rates and flexible repayment options. Checking these websites increases your options to choose from which eventually leads to an informed decision.
Financial Apps
Financial institutions offer education loans on their mobile applications as well. This is because they know people are busy and the easiest way to reach them is through their phones. These applications offer attractive interest rates with minimal documentation which makes the loan approval process quicker than the websites.
Loan Apps
Other than banking and financial institutions, some loan apps offer education loans with just a few taps on your mobile phone. These apps offer loans with interest rates starting at as low as 2.5%, making them an attractive choice compared to other options. However, one must consider other factors like repayment period, pre-penalty, etc for choosing the right option.
Conclusion
Applying for education or ed loans has become quite easier with the advent of online websites and loan apps. These portals offer ed loans at competitive interest rates with quicker access to funds which makes them a considerable option compared to traditional methods. However, one must understand that researching various options and lenders is very essential to make a well-informed decision.