According to reports by RBI, education loans in India steadily increased in 2023. The outstanding education loan amount was around INR 90,000 crores and is expected to grow even more in the coming years. This is mainly due to more students finding these loans a great help to pursue higher education without burdening their parents or guardians.
For pursuing higher education Programs like online M.Sc., students can take a loan to cover the expenses and course fees. If you are also considering an education loan for an M.Sc. course, you are making the right decision. However, before availing one, read this blog. It will provide you with a checklist of all the points that you must go through before taking a loan for your course.
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Points to Consider Before Taking an Education Loan for M.Sc. Course
Parents often find themselves stressed about the course fees of higher education Programs for their children. The burden becomes even more significant in courses like M.Sc, which have high course fees. However, an education loan can help in such cases.
Choosing the right education loan can help you ease the process. So, check the points below before taking an education loan to ensure you select the right option.
Loan Eligibility
The first and most crucial point to check is your loan eligibility. Usually, banks and other lenders offer loans to soon-to-be students. So, you will be the primary borrower, whereas your parents or guardians will be co-applicants. You will be eligible for a loan if you look forward to pursuing a reputed course from an esteemed institution in India or overseas like Amity University Online.
Interest Rates
Interest rates are the most crucial factor in understanding whether a loan offer is right for you. Compare different offers to find the one with minimum interest rates. This will help you lower the total amount you pay the bank.
Documents Required
Banks need you to submit various documents before and after loan approvals. So, you must keep these documents ready. These usually include an acceptance letter from your institution for the course, Class X and XII marksheets, identity proof, graduation certificate (if applicable), and bank statements.
Repayment Plans
Another crucial point to consider is the repayment plan. You will be the primary borrower for your education loan. So, you have to repay the loan. Typically, the repayment begins a year after you complete your course. However, some repayment plans also allow students to repay six months after getting a job. The lender or the bank will charge a simple interest rate on the loan until your repayment period starts.
Margin Percentage
You must also compare the margin percentage of different loan offers to find the most suitable one for you. Margin percentage is a specific percentage of the complete education cost that you must fund on your own. The bank supports the remaining amount in the form of an education loan. This percentage differs from bank to bank and institution. So, before taking a loan, be clear with the lender about the margin percentage.
Guarantee or Collateral
Banks offer both secured and unsecured education loans. So, you might get a loan based on a third-party guarantee or collateral. Usually, banks insist on collateral for loans above INR 7.5 lakhs. You can collateralize your house or property by availing of a loan.
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Is Taking an Education Loan the Right Decision?
Education loans can be a great financial tool for students with budget constraints. They allow you to study and fulfill your dreams irrespective of your economic background. However, an education loan will be helpful only when you choose the right one. Consider all the points listed above in this blog to ensure you are making the right choice.
Online M.Sc Programs: A Budget-Friendly Option
The traditional offline M.Sc courses have high course fees. Also, these courses come with several other expenses. You will need to spend money on books, accommodation, travel, and several other things.
However, the rise of online education solves this problem for you. Online M.Sc courses by top universities are pretty affordable. Also, with their increasing recognition, banks are ready to offer you loans for these Programs. So you can pursue the course of your dreams hassle-free.
One of the most appreciated advantages of an online M.Sc course is its feasible fees. So, you must opt for this budget-friendly option if your financial considerations stress you out about the high course fees. In addition to education loans, you can also opt for EMI payment methods offered by some of the most trusted universities, like Amity University Online. This institute allows complete flexibility to the students for the course as well as the course fee. You can also use the EMI payment method to deposit your course fee in parts every month.
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Conclusion
If you want to pursue higher education courses like M.Sc. but have a limited budget, taking an education loan for M.Sc course is one of the best decisions you can make. However, you must remember all the points listed in this blog while availing of a loan.
You must explore the online M.Sc course offered by the most trusted university- Amity University Online. It allows you to pursue your degree in an affordable way. Also, even after lower course fees, the university allows you complete flexibility to pay for it. Their courses are recognised by top employers.
Amity University Online allows its students to pay for the courses through EMIs. So, you need not worry about paying for the entire course or semester in one go. Instead, you can study stress-free while paying for it in smaller parts monthly.
