How is a study loan useful?
A lot of people wonder what their ideal step would be when it comes to pursuing their further education. Going for a course and selecting a university are important and require the student to do a lot of research.
However, it is very important for the student to arrange the finances for bearing all the academic expenses. A great way to do this is to take a study loan, which helps in taking care of the academic expenses.
To know more, here is why they are perfect for a student:
There are multiple options to choose from
Financial institutions know that the number of students that decide to pursue further education is increasing by the year. Admission to good universities cost a lot, not just the admission fee but everything including living expenses like travel, food and accommodation. The most common step for students is to take a study loan to take care of all these expenses.
This creates a great customer base for financial institutions to take advantage of, and they do so by providing the students with loans. Since there are so many lenders competing against each other, they are forced to provide loan plans that suit the students for them to get enticed and take loans. This is beneficial for the students, since they have many options to choose from, and can go with the best offer they get as per their needs.
Provision of a moratorium period
Students always worry about taking a study loan, as they are not sure how they would be able to pay back the loan on time. But financial institutions know that students would take time to settle in and may face difficulty in repaying the loan. This is because they have just graduated, and take time to find a job and get a regular source of income.
But do not fret, since financial institutions have provided borrowers with a moratorium period. This period is like a grace period in which the student is not required to start paying the EMIs for the study loan. This period is usually for 6 months after the student completes his graduation. This is great for students as they can focus on getting a job and save funds for the EMIs.
Helps build credit score
The first loan that you are most likely to take is a study loan, and it is the perfect way to improve your credit score right from the beginning. A credit score is something that is extremely important for your future. This is because your credit history is going to play a big hand for any loans you would need in the future.
These could include home loans, personal loans, etc. which would obviously be much bigger amounts. Financial institutions will review your credit scores before they sanction your study loan application. Credit scores will also help in you getting a bigger loan amount, and lesser interest too! So you see why this is so important. You can improve your credit scores by paying the EMIs on time and not skip or delay any installment.
Hope this article has helped you, all the best!
