Education is not cheap, especially if you are considering enrolling at one of the prestigious universities around the world. For most students and their parents financing their education with their own resources often becomes a problem. They find that the costs of these courses are rather exorbitant. It is then that they decide to approach a bank for an education loan. But there are several factors to consider before one takes such a loan.
1. Do not borrow beyond your means
It is essential that you do not borrow beyond your means. The larger the amount you borrow, the more time you will have to spend repaying it. As a student you will not be earning till you finish your course unless you take up a part time job. Even then part time jobs do not pay a lot. When you do find employment, your salary will have to be high enough to cover all your other expenses and pay the instalments as well. The borrower should preferably take a small amount as loan so that paying back becomes easier.
2. Join a course that ensures job placement
It is preferable that you join a course that ensures job placement. This way you know that you will get a salary at the end of your course which will help you make your loan repayments.
3. Take a loan with affordable interest rates and other benefits
While public sector banks are often constrained with regard to the interest rates they charge as per government policy, private sector banks are flexible with their interest rates while offering other benefits to the borrower. It is up to the borrower to investigate the interest rates and schemes offered by various banks so that they can opt for the one most beneficial to them.