6 Important points before applying for a student loan?
A student loan is a special kind of loan designed to help students pay for post-secondary education and related expenses. In comparison to other loans, they are often less expensive and offer flexible repayment options while the borrower continues to be enrolled in school. In many countries, there are different laws that govern bankruptcy and renegotiation as well as differences in how much can be borrowed depending on the program chosen.
But there are certain things which you need to keep in mind before applying for a student loan.
Things to be concentrated on before applying for a student loan
- Check the University and courses clearly – The first piece of advice is that before applying for a loan, the student needs to be certain about the university and the field of study they want to follow.
- Increase the chances of being accepted – The likelihood of receiving a loan quickly is higher for reputable organizations with stronger employment prospects. The student’s academic performance is also crucial. After completing the program, there is a high likelihood of finding a better job, and the likelihood of being unemployed is low, so the interest rates will be reduced for such prestigious universities.
- Keep Documents Handy– Documents are very important to get the student loan. They determine whether you will get the loan or not so it’s better to be prepared with following documents-
- Academic certificates and mark sheets
- Institute’s fee schedule
- KYC Records
- Identity and address documentation like Voter ID, an Aadhar card, a PAN card, a driver’s license, a water/electricity/LPG bill, a passport, and the most recent lease on a home
- Signature proof (Aadhar/PAN)
- Birth certificate
- Recent six-month bank statement (salary account)
- Salary slips
- Complete application form
- Two pictures (passport-sized)
- Check the interest rates – Students must also conduct extensive study on loan details, including interest rates, payback terms, moratoria, late payment penalties, and similar other financial considerations. Interest rates typically range between 9 and 15 %. The payback amounts could rise over time because most of this is compound interest.
- Repayment – Additionally, students should be aware that banks provide both short- and long-term repayment plans for student loans. Students should select a bank with a lengthy moratorium period as well. Higher loan amounts are approved when payback plans are longer. For students, longer payback terms make more sense because it takes time for them to begin repaying by finding employment.
Why choose CMRIT as the best college?
CMRIT has received NAAC A+ accreditation and is equipped with all required amenities. The college is affiliated to VTU. The instructors here are incredibly encouraging. They encourage students to think creatively. When it comes to placements, the TYL training programme by CMRIT makes it quite simple from the first year. CMRIT has one of the best placement departments. Top organisations are also brought in for placement by the placement department team.