We know that a good education leads to social mass welfare and we believe that everyone has the right to the best education.
Introduction
When taking a student loan from a bank or financial institution, there are things that one needs to be aware of, other than the fact that loans need to be taken and repaid when the time comes.
If this is not done, borrowers might either face situations that they weren’t prepared for, or get cheated of the education loan which they deserved. Also, they might be blissfully unaware of the details of taking a student loan, and when they do get to know, they might get a reality check. Taking a student loan may not be what you think about it.
To ensure that the aforementioned things don’t happen, this article will run you through some of the most common myths and misconceptions that people have about student loans and what is the actual reality, thereby getting a better idea about taking study loans in India.
Some Popular Myths - Busted
One of the misconceptions that students have about taking study loans in India is that they won’t receive loans if their grades are not up to the mark. This is not true, as the only thing that is required is to have secured admission in the university of your choice, and need to have somebody to stand as a guarantee for the loan.
The same works the other way round as well. If you are a high-ranking student but don’t have anybody to guarantee your loan, you may not stand eligible for the loan.
Borrowers also need to take note that if they secure admission in one of the top universities, this does not mean that they are eligible for some sort of a discount, or a lower rate of interest, on the loan.
Another common myth that students have is that if they take a loan from a bank, they won’t be eligible to take a scholarships. Loans are provided by banks and scholarships are provided by the government and institutions other than banks, so the two are independent of each other.
Students also feel that studying in a foreign university will continue being expensive for them, even if a bank sponsors their education. What they probably don’t realize is that banks provide large sums of money as loans, which can make students’ dream of receiving the finest education from some of the finest universities a reality.
One popular misconception regarding study loan in India is that expenses stop students from studying in the universities of their choice. Financially well-of students don’t really have to worry about the fees and other expenses of the universities, whereas the academically brilliant students have the option of taking loans, provided they have a guarantor for the same.
Tips
Students have to visit multiple banks in order to find the loan that best suits their requirements. They need to ensure that while taking the loan, they are able to repay the amount of the loan. They should also check that whether their as well as their guarantor’s documents are in proper order. They can also apply for loans from overseas bank, as these have a lower rate of interest than Indian banks.
Hope this article was of help towards clearing your myths about student loans in India. Good luck and all the best!!
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