What Are The Criteria For Education Loan? Challenges & Opportunities

Are you someone who is a promising youngster and looking to make it big in the future and want to study in the best of the college in India and abroad? If yes, then you may have to look for finance if you don’t have strong financial support.

In this case, you may look for applying for the education loan via the education loan app and get funds to pursue higher education.

But the facility of education loan comes with many challenges. Let’s take a look at the challenges of education and opportunities that you can look to tackle it. Read on!

Challenges of availing education loan in India

1. The repayment process for the education loan begins within 6 months of employment or after a year of the completion of the course, whichever is earlier. But what next if you have not secured any job or have no repayment capacity? If yes, then you may have to prepare yourself for the worst.
2. Even if you get a job, you will be a fresher and may not be drawing a Salary to repay the education loan. But if you are yet to clear the course and have some backlogs, then servicing the loan EMIs will be a tough ask.
3. You also need to provide something as the collateral to get an education loan. A student may find it tough to arrange.
4. Education loan is challenging as it does not consider your employment or course completion status. The repayment journey will begin as soon as after 6 months of getting the job or a year after the course completion. Once the repayment cycle begins, you may find it tough to manage the education loan EMIs.
5. Many students dream of pursuing their education outside India, but it may just be dreaming too high and expecting too much even when the disbursed amount it’s higher. However, the cost of studying overseas, living expenses, accommodation and many more may not suffice exact expenses.

Things to employ to ease off your education loan challenges

1. If you can, then you must look to refinance your loan with terms and conditions that may be favourable such as lower EMI amount and rate of interest. An unsecured loan like a personal loan may help in this regard. You may also be able to apply for such a loan on an online loan app on your phone. You can think of availing an unsecured loan to repay your education loan.
2. You should also look for exemptions in case your case is unable to get completed on time. In some cases, some lenders may consider it and extend the repayment cycle by some months.
3. Another alternative is going for restructuring that may ease off your education loan. If you can manage to pay a higher rate of interest with loan extension, then you can also make the most of the reduced EMIs.
4. Talk to your concerned bank and try to work a way out. You may get an alternative to delay your repayment journey. You can do that by giving your banks some proof so that it validates your claim as genuine.

If you want to take an unsecured loan like a personal loan, then you can do that on an easy loan app and avoid the hassles of visiting the lenders and wasting your time.