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Things You Don’t Know About Students Loans

By Finserv MARKETS - Jul 27,2019
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Things to know about Student Loans
  • The prospects after graduation
  • Missed EMIs
  • Tenure extension
  • Speak to a credit counsellor

Aastha is a psychology student from New Delhi. She has recently completed her course but is worried about the financial burden associated with an education loan taken at the commencement of her course. Aastha is now desperately looking for a job to make sure her Equated Monthly Installments (EMIs) can be paid on time and that she does not default on her repayments. This is a common scenario across the country with a number of students taking up loans and being unable to pay on time due to the unemployment situation or a lack of credibility of their educational institution.

There are significant repercussions to defaulting on loans including the impact on the credit history of the individual. Selecting a quality loan for education such as the Bajaj Finserv personal loan for education made available by Finserv MARKETS can enable you to access flexible repayment options and customized products to suit the amount and tenure required.

Completing your education is one of the key life goals in addition to purchasing a new home. However, students should be realistic about their job prospects and practice due diligence while taking up the unsecured borrowing. For a middle-class family, an education loan can be a much-needed product, especially while funding higher education.

The costs associated with education could include tuition fee, the cost of purchasing tech products and books, clothing, and more. An education loan can help access quality education to ensure that you are on the path of becoming a professional with a valuable degree. If you are capable of paying your EMIs in time, the loan can be an excellent opportunity to open the gates to quality educational institutions.

The repayment tenure for these loans can be between 12 and 60 months depending on the loan provider and selected course. Individuals essentially take up these loans to prevent a financial burden for their loved ones due to the significant costs associated with education.

The loan provider will assess a number of factors including your credit history and provided documentation before deciding on approval. In the case of a secured loan, the provider will look at the academic background of the student, collateral security offered, and the selected educational institution. Here are a few factors that you might have missed before planning your education loan:

The prospects after graduation:

It is essential to review the job prospects available on the completion of the course at the institution. With no authenticated ranking and benchmark systems, it can be difficult to select the right place. Therefore, it makes sense to equip yourself with skills through industry-oriented courses along with traditional education. Before narrowing down on a college, look at the return on investment. For example, if Aastha believed that she would earn about Rs. 40,000 after graduation, she could have taken up a loan depending on these calculations before commencing her course. If the job prospects are poor, she could have considered alternative options for funding her education.

Missed EMIs:

Paying your loan in time is essential as defaults can significantly impact your credit history. As a young student, you would want your CIBIL records to be spot-free. In addition, non-repayment of loans can lead to legal action against the defaulter. If you have taken a secured borrowing, your collateral might be held by the bank until the entire payment is received.

Tenure extension:

At the beginning of your application process, think about the number of months it would take for you to repay your loan. A longer period can help you reduce your monthly EMIs and make the product more affordable. In addition, if you are worried about getting a job in time, like Aastha, you can opt for a longer tenure to create a hassle-free repayment process.

Speak to a credit counsellor:

A credit counsellor or your trusted financial advisor can help you decide on the loan amount and tenure. Make sure that your counsellor is honest in his or her transactions and does not use the opportunity to sell bundled products such as insurance plans with your loan product.

An unsecured education loan is a straightforward offering that you can be taken up without offering collateral. Therefore, your loved ones can be exempted from financial liabilities resulting from defaults.

Bajaj Finserv personal loan for education can be availed from Finserv MARKETS, which has flexible repayment tenures and attractive benefits. The personal loan for education interest rate is competitive and ensures that you are able to repay your loan with ease. However, it is essential to read the terms and conditions on the fine print of your policy document before making a decision. With these factors in mind, you are now empowered with the knowledge on selecting the right loan product.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522