Question: What are the disadvantages of education loan?

What are the advantages and disadvantages of education loan?

The Education Loan has a floating Rate of Interest with a variable index which changes with time. Depending on banks and type of loans that one is taking, the interest rate may change. Loans below 4 lakhs require no guarantor but for the ones above this amount a guarantor is mandatory.

Is education loan is good or bad?

Some students take an education loan for graduation and then avail of the top-up facility to complete their post-graduation. “Taking a top up on education loan is bad, because it will increase the liability further. It is better to finish the first education loan before taking the second one,” says C. S.

Is taking education loan a good idea?

In either case, an education loan is a good idea and a commonly sought after resort. Pursuing higher studies usually involves high fees and an education loan comes in handy at this point. Banks provide education loans for graduation/PG, diploma or professional courses, at attractive interest rates.

What are the conditions for education loan?

Documents required for an Educational Loan:Duly-filled application form.2 passport size photographs.Graduation, Secondary School Certificate, or High School Certificate or mark sheets.KYC documents that include ID, address, and age proof.Signature Proof.Income Proof of parents or guardian.

Can we repay education loan early?

If you get a job after the completion of your studies, you will need to repay the Equated Monthly Installments (EMIs) in case you have taken an education loan. But you can pay off the loan early to reduce interest payments.

Is education loan free of interest?

It is not possible to get an education loan at 0 interest. Banks have their highest percentage of Non-Performing Assets (NPAs) from the product of education loan itself.

Can I repay education loan early?

As education loans run for as long as 15 years, the interest liability can be much more than you could think of. But you can pay off the loan early to reduce interest payments. Paying off education loans before the scheduled close can be difficult. But if you plan your loan payment, you can do it.

What happens if education loan is not paid?

If you are unable to make repayment on your education loan, then you will receive notices and warnings from the lender. If you fail to comply with the same, then the lender is legally entitled to the assets you mortgaged. Your property or asset can be auctioned or used by the lender.

Can education loan be Cancelled?

Yes, a student loan can be cancelled. Dropout from college- In case the borrower wants to drop out from the course for which he/she has taken a loan from the college, the bank accepts to cancel the loan. Cancellation due to death- All loans gets cancelled it the borrower dies before the debt is fully paid.

What will happen if I will not pay my education loan?

If you are unable to make repayment on your education loan, then you will receive notices and warnings from the lender. If you fail to comply with the same, then the lender is legally entitled to the assets you mortgaged. Your property or asset can be auctioned or used by the lender.

Do student loans go to your bank account?

When you borrow a school-certified private student loan, the lender typically sends your funds to your school rather than your own bank account, after first getting confirmation of your enrollment status, anticipated graduation date and cost of attendance.

What is EMI in education loan?

Ans: EMI is the acronym for Equated Monthly Installment, an EMI amount is the agreed upon fixed amount for monthly repayments that the borrower of the education loan must pay to the lender in order to pay out the money borrowed.

What will happen if education loan not paid?

If you are unable to make repayment on your education loan, then you will receive notices and warnings from the lender. If you fail to comply with the same, then the lender is legally entitled to the assets you mortgaged. Your property or asset can be auctioned or used by the lender.

Can I pay my student loan all at once?

Yes, you can pay your student loan in full at any time. If you are financially able to do so, it may make sense for you to pay off your student loans early. Lenders typically call this “prepayment in full.” Generally, there are no penalties involved in paying off your student loans early.

Say hello

Find us at the office

Zinman- Rahimzadeh street no. 81, 89566 Hargeisa, Somaliland

Give us a ring

Minah Borie
+16 894 882 531
Mon - Fri, 9:00-15:00

Say hello