Tag Archives: loans

The world craves innovation, and engineers are the architects of that progress. Engineers are vital in shaping our world, from towering skyscrapers to life-saving medical devices. However, the path to an engineering degree can be paved with significant financial hurdles. The ever-increasing cost of tuition fees can make pursuing an engineering degree a daunting prospect, especially for students from financially constrained backgrounds. This blog is your roadmap to navigating the financial landscape of engineering education. We'll delve into the intricacies of securing an engineering education loan and explore alternative financing options to achieve your engineering dreams. Types of Education Loans for Engineering Not all education loans are created equal. Here's a breakdown of the different types of loans available for financing your engineering education: Secured Loans: These loans offer potentially lower interest rates because you provide collateral (like property or a vehicle) as security. If you fail to repay the loan, the lender can seize the collateral. Secured loans can be a good option if you have a valuable asset to use as collateral. Unsecured Loans: These loans don't require collateral but typically come with higher interest rates. Lenders compensate for the lack of security by charging a premium. A strong credit history or a co-signer with a good credit score can improve your chances of securing an unsecured loan with a more favorable interest rate. Government Loans: Government-backed loans often offer lower interest rates and flexible repayment options compared to private lenders. Eligibility criteria and loan terms may vary depending on the specific government program. Private Loans: Private banks and non-banking institutions also offer engineering education loans. Interest rates and terms can vary significantly, so careful research and comparison are crucial. Eligibility Criteria: Who Qualifies for an Engineering Education Loan? Before applying for an engineering education loan, ensure you meet the eligibility criteria. Here are some general requirements: Age: Typically, you must be 18 years or older to apply. Nationality: Nationality requirements may vary depending on the lender. Some lenders may only offer loans to citizens or permanent residents of their country. Academic Qualifications: Your academic performance in previous studies will be considered. Strong academic records can improve your chances of loan approval. Admission to a Program: Proof of admission to a recognized engineering program at a university or college is mandatory. Remember, some lenders may have additional criteria like a co-signer requirement or a minimum credit score requirement for unsecured loans. Factors to Consider When Choosing an Education Loan for Engineering Securing eligibility is just the first step. Here are crucial factors to consider when choosing the right engineering education loan: Interest Rates: This significantly impacts your overall repayment cost. Fixed interest rates offer stability, while variable rates can fluctuate over time. Carefully compare interest rates offered by different lenders. Loan Amount: Borrow only what you genuinely need to cover tuition fees, living expenses, and essential study materials. Avoid unnecessary borrowing that might lead to a heavier financial burden in the future. Repayment Terms: Understand the loan repayment schedule, including the repayment period and monthly installments. Look for options with flexible repayment plans that can adjust to your future earning potential. Processing Fees: Identify any associated fees for loan processing or disbursement. Factor these fees into your overall loan cost comparison. Hidden Costs: Read the fine print carefully. Be aware of any additional charges or penalties for late payments or prepayments. Don't be afraid to negotiate terms with lenders or seek clarification on any unclear aspects of the loan agreement. Earning an engineering degree is an investment in your future. The knowledge and skills you acquire will empower you to solve complex problems and contribute meaningfully to society. By carefully planning your finances and exploring various funding options, you can minimize the financial burden and focus on achieving your academic goals. EduFund Loans understands the unique needs of engineering students. We offer competitive interest rates, a streamlined application process, and flexible repayment options tailored to your future earning potential. Our dedicated customer support team is here to guide you through every step of the journey. Don't let financial constraints hold you back from pursuing your engineering dreams. Visit the EduFund Loans website today to explore our loan options and take the first step towards a bright future in engineering!

The thrill of studying abroad – a new culture, diverse experiences, and a global perspective – is undeniable. However, the financial hurdles associated with international education can be daunting. Between tuition fees, living expenses, and travel costs, securing funding becomes critical in realizing your dream. This blog is your guide to navigating the education loan application process. We'll focus on EduFund loans as the ultimate tool for accessing affordable financing for your study abroad adventure. We'll demystify the loan application maze and highlight the streamlined and user-friendly approach offered by EduFund loans. Understanding Education Loan Applications An education loan application form is your official request for financial assistance to pursue your studies abroad. Think of it as a roadmap for the lender, providing them with the necessary details to assess your eligibility and loan requirements. The application form typically includes sections for your personal details, academic background, course specifics, financial information, and sometimes details about a guarantor or co-signer (if applicable). Remember, accuracy and completeness are paramount. Double-check all information before submitting your application to avoid delays or potential rejection. Important Documents for Education Loan Application You must gather and submit specific documents to complete your education loan application successfully. Here's a list of some essential ones (requirements may vary slightly depending on the lender): Completed application form: This is the foundation, so ensure all details are accurate and truthful. Academic transcripts and certificates: Proof of your academic achievements is crucial. Proof of admission to a foreign university: An official acceptance letter demonstrates your confirmed enrollment. Proof of identity and residence: Valid documents like passports or utility bills verify your identity and address. Financial documents: Income tax returns, bank statements, or sponsor letters demonstrate your financial situation. Guarantor/co-signer documents (if applicable): If required, provide documents proving your guarantor's financial strength. EduFund Advantage: A Streamlined Approach to Education Loan Applications Feeling overwhelmed by the paperwork and complexities of a traditional loan application? EduFund loans offer a refreshing solution! Here's why EduFund stands out: Simplified Online Application: Ditch the paper forms! EduFund boasts a user-friendly online application platform that seamlessly guides you through the process. Streamlined Document Submission: No more scrambling for physical copies. Upload all required documents securely through the EduFund platform. Fast and Efficient Verification: EduFund utilizes technology to expedite document verification, ensuring a quicker application turnaround. Dedicated Customer Support: Have questions or need guidance? EduFund's dedicated customer support team can assist you throughout the application process. A Step-by-Step Guide to Applying for an EduFund Loan Ready to embark on your journey with EduFund loans? Here's a step-by-step guide to make the application process smooth and efficient: Visit the EduFund website: Navigate to the "Apply Now" section or the designated application page. Fill out the Online Application: Provide accurate and complete details about yourself, your academic background, and the program you'll be pursuing. Upload Required Documents: Utilize the secure upload feature to submit all necessary documents per the checklist. Submit Your Application: Once you've reviewed and confirmed all information, submit your application electronically. You'll receive a confirmation email. Await Loan Approval and Discuss Terms: EduFund will review your application and notify you of the approval decision. Upon approval, you can discuss loan terms and interest rates before finalizing the agreement.

The ever-increasing cost of education makes student loans a reality for many aspiring students. However, navigating the complexities of securing a loan can be overwhelming, especially when it comes to the topic of collateral. This blog aims to untangle the confusion surrounding collateral requirements for education loans and empower you to make informed decisions. Secured vs. Unsecured Education Loans: Understanding the Difference Imagine a loan as a promise to repay borrowed money. In a secured education loan, you offer collateral (an asset like property or a vehicle) as security. If you fail to repay the loan, the lender can seize this collateral to recoup their losses. Secured loans typically come with lower interest rates and allow you to borrow larger sums. However, the risk of losing your valuable asset is a significant drawback. On the other hand, unsecured education loans don't require collateral. This might sound ideal, but lenders compensate for the lack of security by charging higher interest rates and having stricter eligibility requirements. Generally, a strong credit score increases your chances of securing an unsecured loan. Factors Affecting Collateral Requirements Several factors influence whether a lender requires collateral for your education loan. Your credit score plays a crucial role. A limited credit history or a low credit score may make it more likely for lenders to seek the security of collateral. Here's another factor: guarantors or co-signers. These are individuals who essentially agree to take responsibility for your loan repayment if you default. Having a co-signer with a strong financial standing can improve your chances of getting an unsecured loan or a secured loan with a more favorable interest rate. Lenders may also consider the type of course you're pursuing, the loan amount you're requesting, and your academic record when deciding on collateral requirements. When is Collateral Typically Required for Education Loans? Let's look at some real-life situations where collateral is more likely to be a requirement: Loans for Large Amounts: If you need a substantial loan to cover your education expenses, lenders may seek additional security in the form of collateral to minimize their risk. Low Credit Score: Lenders might require collateral to offset the perceived higher risk of non-repayment if you have a limited credit history or a low credit score. Unestablished Career: Students without a stable job history may find it challenging to secure an unsecured loan, especially for a large amount. A co-signer or collateral can strengthen your application in such cases. When Can You Get an Unsecured Loan to Study Abroad? There are situations where unsecured loans are a viable option: Loans for Smaller Amounts: For smaller loan amounts, lenders might be more flexible and offer unsecured options with competitive interest rates. Strong Credit Score & Co-signer: A good credit score demonstrates your financial responsibility and increases your chances of securing an unsecured loan. A co-signer with a strong financial background can further strengthen your application. Specific Loan Programs: Government or scholarship-based loan programs may offer unsecured options with lower interest rates compared to private lenders. Additional Factors to Consider When Choosing an Education Loan Remember, collateral is just one piece of the puzzle when choosing an education loan. It's crucial to compare interest rates (fixed vs. variable) offered by different lenders. Fixed interest rates provide stability in your monthly payments, while variable rates can fluctuate over time. Don't neglect other loan features like repayment terms, processing fees, and prepayment options. These factors can significantly impact your overall loan experience. It's also wise to research scholarships, grants, and financial aid programs offered by your institution or government agencies. Reducing your reliance on loans can lessen your financial burden.

Earning a Master's degree from the United States is a dream for many aspiring professionals. A US Master's degree opens doors to a world of opportunity, with globally recognized credentials that enhance your career prospects and unlock a higher earning potential. However, the high cost of education in the US, especially for international students, can be a significant obstacle. The good news is, there are ways to make a US Master's degree more affordable. This blog will guide you through various strategies for finding affordable programs and highlight some top universities in the US offering such opportunities. We'll also explore how parents can support their children's educational dreams and introduce EduFund as a valuable solution. Why Pursue a Master's Degree in the USA? Investing in a US Master's degree can yield a significant return on investment (ROI). Here's why: Globally Recognized Credentials: A US Master's degree is a prestigious qualification recognized by employers worldwide. It gives you a competitive edge in the job market and opens doors to international career opportunities. Specialized Programs & Cutting-Edge Research: US universities offer a vast array of specialized Master's programs, allowing you to delve deeper into your chosen field. Many institutions are at the forefront of research, providing access to cutting-edge knowledge and practical applications. Practical Learning & Industry Connections: Many US Master's programs emphasize practical learning experiences, internships, and connections with leading industries. This equips you with the skills and networks employers value most. Increased Earning Potential: Studies consistently show that graduates with Master's degrees often command higher salaries compared to those with only a Bachelor's degree. Top 5 US Universities with Affordable Master's Programs Arizona State University (ASU) - Tempe, Arizona: Introduction: ASU is a large, public research university known for its innovative programs and commitment to online education. Tuition Fees (Estimated): $15,000 - $25,000 per year (online programs) Top Master's Programs for Indian Students: Computer Science, Engineering (various specializations), Business Administration, Supply Chain Management, Data Analytics. Additional Points: ASU offers numerous scholarships specifically for international students, making it a financially attractive option. Their online programs provide flexibility and potentially lower tuition fees. University of North Carolina at Chapel Hill (UNC Chapel Hill) - Chapel Hill, North Carolina: Introduction: UNC Chapel Hill is a prestigious public research university known for its strong academic programs and beautiful campus. Tuition Fees (Estimated): $25,000 - $35,000 per year (Out-of-State) Top Master's Programs for Indian Students: Public Health, Information Technology, Environmental Sciences, Business Administration, Data Science. Additional Points: While UNC Chapel Hill has a slightly higher cost of living compared to the national average, it offers a well-rounded academic experience and strong alumni network. Research in-state tuition options if eligible. Western Kentucky University (WKU) - Bowling Green, Kentucky: Introduction: WKU is a public university known for its affordability and quality programs. It offers a vibrant campus life in a relatively low-cost area. Tuition Fees (Estimated): $12,000 - $20,000 per year Top Master's Programs for Indian Students: Engineering Management, Computer Science, Business Administration, Marketing, Public Health. Additional Points: WKU offers a combination of on-campus and online Master's programs, making it suitable for various learning preferences. The lower cost of living in Bowling Green helps manage overall expenses. University of Wisconsin-Madison (UW-Madison) - Madison, Wisconsin: Introduction: UW-Madison is a renowned public research university with a strong reputation in science, engineering, and humanities. Tuition Fees (Estimated): $28,000 - $40,000 per year (Out-of-State) Top Master's Programs for Indian Students: Engineering (various specializations), Computer Science, Supply Chain Management, Life Sciences, Public Policy. Additional Points: While tuition fees are higher, UW-Madison offers excellent research opportunities and a vibrant campus life. Explore scholarship opportunities to offset costs. Purdue University - West Lafayette, Indiana: Introduction: Purdue University is a public research university with a global reputation in engineering, technology, and agriculture. Tuition Fees (Estimated): $25,000 - $35,000 per year (Out-of-State) Top Master's Programs for Indian Students: Engineering (various specializations), Computer Science, Management Information Systems, Aviation, Food Science. Additional Points: Purdue University offers a strong focus on practical learning and industry connections, making graduates highly sought-after by employers. Research scholarship and assistantship possibilities. Please note: Tuition fees are approximate and may vary depending on the specific program. It's crucial to research individual universities and programs for the most up-to-date information. Top Strategies for Finding Affordable Master's Programs Finding an affordable Master's program in the US requires strategic planning. Here are some key tips: Explore Public Universities: Public universities generally boast lower tuition fees compared to private institutions. Research public universities within your chosen field that offer strong Master's programs. Consider Location: While prestigious universities in major cities can be tempting, they often come with a higher cost of living. Consider universities located in regions with a lower cost of living to manage expenses effectively. Look for Online Programs: The rise of online education offers flexibility and potentially lower tuition fees while providing a quality education. Explore online Master's programs from reputable universities. Research Scholarships and Financial Aid: Many universities offer scholarships and financial aid specifically for international students. These can significantly reduce your financial burden. Research and apply for scholarships offered by the university, external organizations, or your home country. Target Programs with Assistantships: Graduate assistantships can provide a valuable combination of tuition reduction and work experience. These assistantships typically involve assisting professors with research or teaching duties.

Education can be a costly affair not only in terms of tuition fees but also the add-ons like different gadgets for students only add to your cost of living alone. Electronic gadgets form an important part of such expenses but there are some gadgets to make your student's life easier. Being informed about which gadgets serve your educational needs can be helpful in deciding if you need a laptop or a smartphone. In the long run, you don’t want to make investments you might regret later. You also want to take note of the following gadgets as expenses to consider while applying for an education loan.  Start a Goal for these Gadgets! Learn how to manage your child’s screen time on mobiles, TVs and other screens! Gadgets are essential for your child's learning, growth and development. However, its important to regulate this screening and access to gadgets, watch this video to learn the best way to give your child the best of both worlds! https://www.youtube.com/watch?v=hM54u7uCWjM Gadgets for Students Here are some essential gadgets that can make a student's life easier and enhance the learning process! 1. Smartphone or Tablet  Gone are the times when a mobile phone was solely seen as a source of distraction for students. These days a smartphone is one of the primary requirements. Be it, online classes, watching educational videos, accessing your email account, or simply surfing the internet, a smartphone is a go-to.  An alternative to smartphones is tablets which come with slightly bigger screens and better resolutions. For example, an iPad will have a higher aspect ratio than an iPhone. This means that the iPad will have more resolution and screen size than the iPhone. But it also means that an iPhone is more compact as a device as compared to an iPad. While purchasing either, you are required to make the right choice by weighing it against your requirements.   https://www.youtube.com/watch?v=tdwqQH0xkFw 2. Laptop or PC Unlike earlier, everything that can be accessed through a computer is also accessible through smartphones. However personal computers are favored over smartphones because of the experience they offer. A personal computer might comprise a monitor, CPU, keyboard, mouse, speaker, webcam, internal hard drive, and so on. Although these gadgets have to be purchased separately and can take up considerable space. But it is a good investment if you are a student because it creates a dedicated space for studying.   With laptops, the experience might not be as top-notch. Nevertheless, Macbooks are popular amongst students because of their compact design and the convenience of portability. A laptop works wirelessly and comes with a keyboard, built-in speakers, a web camera, and a touchpad in the place of a mouse. It is a brilliant investment especially if you are staying away from home for educational purposes.  3. External Hard drive  Nowadays every document you own can be saved up as a soft copy in cloud memory or your e-drive connected to your email account. This helps you take up less physical space with your studying materials. Even so, owning an external hard drive is a smart move if you want to be extra careful about preserving all of your materials.  An external drive allows you to access your documents easily without taking up much of your study space or the internal space on your device. All you have to do is connect the drive to your laptop or PC. Another attractive feature of an external hard drive is its portability.  4. Noise Cancellation Headphones  Headphones have existed as a wanted product in the market for a long time. One of the new features that have caused a terrific comeback for headphones is its noise cancellation. As the name suggests, noise-canceling headphones are meant to block out all of the external noise not only while listening to an audio clip but also during recordings or incoming and outgoing calls. The level of concentration a student can achieve is always considered a virtue that helps them excel in academics. Noise-cancellation headphones can help them attain that level of undivided attention which is also a requirement for online classes that have become the trend during the pandemic.  5. Printer  Even though many new and cool gadgets have flooded the market, printers shall never run out of fashion. If your subject or the academic course you have enrolled in requires you to get things printed regularly, going to a shop to get it done makes no sense.  Well-known brands like Epson, HP, Brother, Samsung, and Canon have introduced a range of budget printers to the market in recent years. By purchasing one of these, you would not only save up on your daily expenses but also preserve your precious time. In fact, having a printer at home can come in handy during emergency assignment submissions.   6. Electric Kettle & Emergency Lamp As a student, you might be required to pull all-nighters frequently. Even if that is not the case, staying up late might simply be part of your daily study routine. In such circumstances, gadgets that can make your life easier are electric kettles and emergency lamps.  Make yourself a cup of coffee or tea if you feel drowsy. You are no longer required to leave your study table to go to the kitchen as long as own an electric kettle. An emergency table lamp will come in handy if you are sharing your room with a fellow student or living in a dorm.   7. Kindle  Kindles will never run out of favor among students as long as academics is about gathering knowledge by reading books. A Kindle is an e-reader manufactured and sold by Amazon. One can read not only e-books but also e-magazines and other such digital content on this wireless gadget.  Call it a side effect of globalization, but nowadays students are required to keep moving from one location to another during different stages of their education. As such, a Kindle is an indispensable gadget - it is the alternative to carrying hard copies of bulky books. Moreover, it comes with cool features like a highlighting tool and sometimes a waterproof body. Dictionaries will be at your disposal while reading if you have them downloaded on your Kindle. You will not be required to carry a dictionary everywhere you go, as long as carry your books in your Kindle.    8. External Batteries & Portable Chargers   Being a student means you will require safe-to-use and convenient gadgets to charge devices like your phone, laptop, tablet, speaker, and so on. A range of portable chargers has been developed in recent years by reputed companies to make life easier. The concept of clutch batteries or chargers that are the size of a clutch or purse is becoming increasingly popular in this era of digitization.    For students who depend on rigorous online activity as part of their academic curriculum, these allow them to charge their devices wherever they are. For charging devices iPhones, special external batteries like the Ubio Labs Shadow Series have been developed which are not only easy to carry but also stunning to look at. 9. Rocketbook Everlast smart reusable notebook  Rocketbook is a digital notebook for all those who love to write over typing. It is a useful and affordable gadget for students who have trouble taking notes on their laptops and need a notebook that can be reused and even used later to add transfer notes digitally.   It’s a popular and efficient product for college students, school students and even working professionals.    10. Anti-theft laptop bag   Want to protect your expensive laptop then get an anti-theft laptop bag to ensure maximum security for your gadgets as a student. It is an affordable bag. bag rucksack and helps you protect your precious belongings at school or college from theft.    11. External hard drive  An external hard drive is a must for every student. It helps you store all your data safely. If you are a student who uses a lot of storage on your laptop for photos, videos, college projects, or freelance work – this is the right gadget for you. It helps you protect your data from a virus on your laptop or in the event your laptop breaks down.   Hard drives come in different capacities and based on that; the product has different price points.     12. Laptop tray with fans  A laptop tray is a great addition to the list of gadgets students need. It cools down your laptop and ensures your work is not hindered because of an overheating laptop or sudden shutdown because of overuse. Make you get a laptop tray the size of your laptop.   These trays are portable and let you work on your laptop without any disturbance.     13. Folding Bluetooth keyboard  A folding keyboard is great for students who do not have a laptop. You can attach it to your phone or tablet and type away your notes or do-to lists. It's lightweight, easy to carry, and connects with your laptop, phone, iPad, or tablet with ease.   It is a great alternative for students who do not have to buy a laptop but need a writing keyword to type their assignments and projects.    14. Wi-Fi range extender  The Wi-Fi range extender is a great product for students. The Internet is man’s new best friend and a student’s savior during college. Good Wi-Fi can help you with your workload. A range extender can cover your entire house or apartment, you do not have to sit in a particular corner to get the best service.    15. Portable phone charger  Student hours are long and tiring. You may not always have a battery on your phone or a plug to charge it quickly. That’s when a portable charger comes in handy, you can charge your phone while traveling, during class, or in a car.   It is a must-buy gadget for students and working professionals.   Start a Goal for these Gadgets! Conclusion Choosing the correct devices to make your student's life easier should not be a taxing chore. Make sure to devote time to saving up beforehand for each investment. Having funds dedicated to such purchases and knowing what you should purchase can make your student's life not only easier but also fulfilling. FAQs Which gadget is best for students? Here are some gadgets for students that make their lives easier: Smartphone or Tablet Laptop or PC External Hard drive Noise Cancellation Headphones Printer Electric Kettle & Emergency Lamp Kindle External Batteries & Portable Chargers Rocketbook Everlast smart reusable notebook Anti-theft laptop bag External hard drive Laptop tray with fans Folding Bluetooth keyboard Wi-Fi range extender Portable phone charger Why are gadgets useful for students? Gadgets serve many purposes; they make our lives easier, help us stay connected with the world, and make significant life decisions. From helping with homework to traveling the world, gadgets are useful, for students for education, learning, and life experiences. What are some fun gadgets? Here are some fun gadgets for students: FitbitSmartphone or TabletLaptop or PCNoise Cancellation Headphones

If you are taking an education loan then you have probably heard the term “co-applicant”. But who is a co-applicant? What are the eligibility criteria for a co-applicant? Why do you need a co-applicant for your education loan? Let’s find out!   https://www.youtube.com/watch?v=TJ4qgFj46Uw Importance of an Education Loan Imagine you just got into your dream university in Canada for a master's degree. All your hard work has finally paid off and you are ready to get your journey started. A part of your degree is already covered by scholarships and your hard-earned savings but you are still short on money. In such emergencies, an education loan can be a savior. Education is the security blanket that helps you live your dreams. It can sponsor your entire education or a part of it. Opting for an education loan offers numerous advantages to students pursuing higher education. One of the primary benefits is the ability to fund your education independently. With an education loan, you don’t have to dig into your family savings or exhaust all your savings on your degree.  Furthermore, responsibly repaying the loan helps students build a strong credit score and discipline. Another benefit of education loans often comes with flexible repayment options wherein they can start repaying their loan allowing students to manage the loan efficiently even during their studies. What is the role of co-applicants in education loans? A co-applicant, also known as a co-signer, is a vital component in the education loan application process. This individual co-signs the loan agreement alongside the primary loan applicant (the student) and shares equal responsibility for repayment. The presence of a co-applicant provides a safety net for the lender, ensuring that the loan is repaid even in unforeseen circumstances when the primary applicant may face financial difficulties. Consult an Expert Advisor Who can be a co-applicant? Financial institutions have specific eligibility criteria for co-applicants in education loan applications. Typically, a co-applicant can be a parent, legal guardian, sibling, or any blood relative of the primary applicant. It is essential for the co-applicant to possess an Indian bank account capable of signing cheques. Apart from these basic criteria, lenders consider other factors to assess the co-applicant's financial stability: CIBIL Score: The CIBIL score of a co-applicant plays a significant role in loan approval. Ranging from 300 to 850, a higher score improves the chances of securing the loan. A good credit score indicates strong creditworthiness, ensuring greater reliability in repaying the loan. Income Tax Returns (ITR) Document: Lenders carefully scrutinize the co-applicants' ITR document, which provides essential financial information. This document enables lenders to evaluate the co-applicant's financial health and repayment capacity. Income Proof: For salaried individuals, providing salary slips for the last 6-8 months is a mandatory requirement. Self-employed co-applicants need to submit various documents, including GST registration proof and financial statements of their business, to demonstrate their income stability. Income Amount: The financial institution evaluates the co-applicant's annual income to determine their eligibility for the education loan. Different lenders may have varying minimum income requirements. https://www.youtube.com/watch?v=9EAyvncisU4 FAQs Who is a co-applicant? A co-applicant can be a parent, legal guardian, sibling, or any blood relative of the primary applicant. Is it good to have a co-applicant? Yes, it is good to have a co-applicant. A financially strong co-applicant can increase the chances of education loan approval. Can a co-applicant take another loan? Yes, a co-applicant can apply for other personal, car, or home loans. Can you apply for an education loan without a co-applicant? Some banks have a mandatory clause wherein a co-applicant is essential for your education loan application while some banks are more flexible.

As you look to plan your child’s career and consider their higher studies in a good institute in India or overseas, the question that most parents ask themselves is, how hard is it to get an education loan? Today, education in India has become quite expensive from the school level onwards. Given the rising inflation rate, fees across the board for higher education in reputed Indian and international universities are going up yearly. In this scenario, if you are serious about sending your child to an excellent Indian institute or abroad for higher studies, chances are high that you will be required to take an education loan. Taking an education loan for a four-year undergrad engineering course from a private institute in India can cost you upwards of Rs. 12 lakhs in tuition fees. The same course in an international university can go up to Rs. 60 - 70 lakhs, with travel and stay extra. Most parents today opt for an education loan to fulfill their child’s educational and career aspirations. That brings us to the topic of this article: how hard is it to get an education loan? To understand the challenges, you must understand what the lenders look for in an education loan application. Apply for an Education Loan What lenders look for while reviewing education loan applications There are several education loans available, as RBI promotes these extensively. So most nationalized banks will offer you these loans. Here is the list of factors they consider when reviewing an education loan application: 1. Financial history of the borrower and co-borrowers Especially in the case of undergraduate courses, parents as co-borrowers must have an excellent credit rating and must show the financial capability to meet the need for repayment, should the need arise. 2. Co-borrower or Co-applicant While international lenders may not ask for a guarantor, most public sector/govt lenders do. They require a guarantor or co-applicant, especially if the loan is for a significant amount. Again, the guarantor's credit history will be scrutinized while sanctioning the loan. 3. Collateral Public sector/nationalized banks and several private lenders need collateral to issue an education loan if the amount is enormous. The value of the collateral is worked out in light of the loan required and varies depending on the lender, but collateral is a must. There are various non-collateral options available for students as well. Most of these even offer loan amounts up to 1 crore, but it depends upon the individual and their application. 4. University of your choice This is another crucial aspect for lenders. Most leading lenders have their preferred list of universities and courses for which they will issue loans. So, you must ensure that the institute your child is shortlisting is on that list and an accredited educational institute that the banks recognise. 5. The academic record of the student An excellent academic record goes a long way in assuring the lender of the child’s seriousness toward education and career. It works as an indicator for them that the student will complete the course for which the loan is being given and will be able to repay the same by building a promising career. FAQs Do we get education loans easily? The easiest way to get an education loan is to connect with EduFund. EduFund helps students by connecting them directly to the right education loan provider! With EduFund, you can get the lowest interest rates, express approvals, and end-to-end assistance in securing the right education loan for your profile. EduFund experts can also help you avoid hidden fees, get approvals without an offer letter, and ensure a smooth loan disbursement for your future plans. Connect with our experts here! Do education loans get rejected? Yes, education loans can be rejected. Banks can reject your loan application if there are any discrepancies in the documents. If your co-applicant does not meet the set criteria, or if you have opted for a course or university that the bank does not recognize. There are many reasons - the best way to avoid rejection is to plan with experts like EduFund, who offer end-to-end assistance. Why is it difficult to get an education loan in India? Yes, the loan process in India can be lengthy and tiresome if the candidate is applying on their own. With the help of experts from EduFund, you can avoid the lengthy process of getting in touch with the right providers directly and applying for a loan in no time. TALK TO OUR EXPERTS

With quality education becoming expensive and costlier every year, education loans are becoming extremely popular among students. In reality, the price of attending a reputable university is already very high. An MBA that cost 13 lakhs a decade ago, would now cost almost double that. Parents who plan their child’s education in advance and want to provide them with the best opportunities possible to invest their money in mutual funds (MFs), fixed deposits (FDs), and stocks. Amid all this, there still is a possibility of a financial shortfall. In such a situation, an education loan plays a critical role in bridging the gap between the shortfall and the necessary amount. The rising cost of education According to Forbes, education costs are rising at double the rate of inflation. In 15 years, the cost of an MBA is expected to rise from Rs 2.5 lakh to Rs 20 lakh. So, if a couple saves Rs 2,500 per month for 15 years at a rate of 12%, they would have saved about Rs 12.5 lakhs, ultimately needing some more funds if their child decides to pursue an MBA. Now, you must have some questions on your mind regarding the intricacies of availing of an education loan. We have tried to answer a few commonly asked questions to enhance your understanding. Apply for your dreams, get an education loan with us! 1. Who can apply for a student loan? The primary creditor is a student. A co-applicant may be a parent, partner, or sibling. 2. What is covered by a student loan? It includes the basic course fee and other costs such as accommodation, exam fees, equipment, and other miscellaneous expenses. 3. Who can avail of a student loan? It is available to students who wish to study in India or further their education outside the country. The overall sum available for studies in India and abroad differs from one bank to the next. 4. For what courses can the loan be availed? It is available as a full-time, part-time, or vocational course leading to graduation or post-graduation in engineering, management, medicine, hotel management, architecture, and other fields. 5. What are the eligibility criteria and documentation requirements? To be eligible for the loan, one must be an Indian citizen who has been accepted into a college or university that is recognized by a competent authority in India or abroad. The applicant must have completed his senior high school education.Some banks can provide a loan even before a student has been accepted to a university. The Reserve Bank of India (RBI) guidelines state that there are no upper age limits, but some banks may impose them. Additional documents such as the institution's admission letter, fee structure, and Class X, XII, and graduation (if applicable) mark sheets are required by the banks. The co-applicants income records, such as salary slips or income-tax returns (ITR), are also needed. 6. Is collateral required for financing the loan? Depending on the amount, banks will fund up to 100% of the loan. There is currently no margin money required for loans up to Rs 4 lakh. To study in India, the applicant must contribute 5% of the necessary funds. The needed margin money for international studies, on the other hand, rises to 15%. Banks may also need collateral for loans exceeding Rs 7.5 lakh. For loans up to Rs 4 lakh, financial institutions currently do not need any collateral or third-party guarantee. A third-party guarantee is required for loans between Rs 4 lakh and Rs 7.5 lakh. For loans exceeding Rs 7.5 lakh, a security deposit is required. According to the fee structure, when a loan application is approved, the banks send the funds directly to the college or university. 7. What is the rate of interest charged on the education loan? To set an interest rate, banks use the Marginal Cost of Funds Lending Rate (MCLR) which in India ranges anywhere from 7% - 8% plus a spread (about 1 - 2.5%). Applying with EduFund can get you interest rates starting at just 9%! 8. What is the process of repayment? The individual availing the loan for their education is responsible for repaying the loan. In most cases, repayment begins when the course is completed. Some banks also give you a six-month grace period after you get a job or a year after you finish your studies before you have to pay back your loan. The repayment period is usually between 5 and 7 years, but it may also be extended to 15 or 20 years depending upon the bank and the applicant. The bank charges a basic interest rate on a loan over the repayment period. The student's equated monthly instalment (EMI) burden for future repayments is reduced by paying basic interest during the course duration. 9. What precautions should one take while applying for student loans? When availing of a loan, one must consider bank fees such as transaction fees, pre-payment fees, late EMI payment fees, and so on. The majority of lenders charge a processing fee of the total loan amount. 10. Are there any tax benefits? The interest paid on the repayment is deductible under Section 80E of the Internal Revenue Code. This tax benefit is only available to people who are paying interest on a personal loan. The whole amount of interest charged is deductible from your taxable profits. This deduction can be taken for up to 8 years. There are no tax deductions available for the principal sum. 11. How can I apply for an education loan? You can visit the Education Loans page on the EduFund website and fill up a simple form. You will get all the details, along with guidance from experts in the field. FAQs What is an education loan? An education loan is a type of loan used for educational expenses such as tuition fees and education-related expenses like books, accommodation, living expenses, and much more. Education loans can be availed for studying only and one of the requirements is an offer letter from a reputed university/college. Who can apply for an education loan? The primary creditor is a student. A co-applicant may be a parent, partner, or sibling. How can I apply for an education loan? You can visit the Education Loans page on the EduFund website and fill up a simple form. You will get all the details, along with guidance from experts in the field. Conclusion Good education is extremely important in the present dynamic world. It not only boosts self-confidence in students but also equips them with skills that in turn help them lead their life in the best possible way. Taking a loan might look frightening but in the long run, it definitely pays off, provided the student is focused and makes the best of the opportunity. Also, since an education loan is a person's first loan, it aids in the creation of a good credit score. If you repay the loan on time and without defaults, it would be easier for you to obtain a home loan, car loan, or any type of loan in the future. CONNECT WITH OUR LOAN EXPERTS

Before we get into the nitty-gritty of how to get an education loan without collateral for MS in the US, let us first understand how much the MS will cost your child. Get an education loan for your MS in the USA here! https://www.youtube.com/watch?v=fufyFB9aMQI https://www.youtube.com/shorts/D43JJkkQPQI How much money do you need? MS in the US is a graduate-level (master) course done over a period of 18 -24 months. These can be fast-tracked or done over a longer period if the student chooses to do this as a part-time course. The average cost of doing an MS degree typically ranges from Rs. 40 lakhs to Rs. 60 lakhs, depending on the course of study and the institution. This amount can go higher if the student opts for a private university in the USA. Once you decide on the child’s course of study and institute, the task is to get a ballpark on the costs and other travel and living expenses that your child will incur over the course duration. Considering the loans While the public sector and some large private sector banks insist on collateral for such large loans, there are several lenders in the banking and non-banking sectors today who issue education loans of large amounts without collateral. Additional read: How to repay education loans faster? Things to note when taking an education loan without collateral When you take an education loan without collateral here are a few aspects of this borrowing you must keep in mind: 1. Recognized Universities Lenders typically have a list of institutions for which they provide education loans. So you will have to ensure that the institute where your child is taking admission is on the list of most of the lenders. 2. Loans cover different parts of the expenses Some cover only tuition fees, while others may cover travel and part of the living expenses too. So when you are asking about the details, check on these facts. Expenses that are not covered in the loan will have to be borne by you. Ensure you have the reserve finances for that. 3. Credit history matters In loans issued without collateral, the credit history of the cosigner (typically the parent) is considered. So make sure you keep your credit record clean and positive at all times. Most of these loans will also require a guarantor. You must understand that the guarantor is legally bound to make good on the payment if the student / co-borrower defaults. 4. High-interest rates These types of loans also carry a higher rate of interest ranging from 12% to up to 15% per annum. 5. Processing period Processing time in most lending companies for an education loan of this nature is quite short: 2-5 days. So once you have identified the institute and the course, and have an admission offer in hand, you can start the application process for an education loan without collateral for MS in the US. 6. Check on Scholarships You can also consider exploring the scholarships available for students planning to pursue MS in the United States. This can help ease the burden of your loan. Always visit the university website, and check if you are eligible for any monetary compensation, rewards or waivers that can help reduce your loan amount.   7. A collateral loan without property can be tough to pay off FDs, Bonds, mutual funds investments – all of these instruments are also considered as collateral, depending on the policies of the various companies. While a loan without collateral may seem easier to get in the start, it is definitely more expensive and will put a bigger debt burden on your child. Try to borrow an amount you feel comfortable paying off, be regular with your payments, and look for competitive interest rates before deciding on any one loan plan. https://www.youtube.com/watch?v=TNVvKy460dQ Why are capital market investments good for you? The benefit of these instruments is that you do not need a large sum of money to invest in these at one go: which deters most families from investing in property. Small investments done regularly can go a long way in building a substantial corpus for your child’s MS in the US. Before deciding on an education loan without collateral for MS in the US for your child, make sure to read the fine print and interest rates to make a wise choice for your child’s future. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Education loan has become quite common for students aspiring to study further for their higher education. But what happens when the loan applicant cannot pay the amount back? The burden of repaying then falls on the co-applicants.  Education loan insurance minimizes the financial risk of the education loan significantly. It provides the necessary backup in case things go south and the loan applicant is unable to pay the loan amount. In some cases, like terminal illness, the entire amount is paid by the insurance company instead of the co-applicants, if the primary applicant has taken the loan insurance.  Get an education loan for higher studies at 9.85% What is education loan insurance? As the name suggests, it refers to the insurance taken by an applicant on their education loan. The current job market conditions, limited career opportunities, poor campus placements, local economy slowdown, and uncertainty in global economic conditions have resulted in a negative impact on the employment market.  The education loan insurance comes to the rescue if the primary loan applicant fails to repay the loan in dire situations like death, terminal illness unemployment, etc. It also ensures that the burden of repayment does not fall on the co-applicants.  Finding the right education loan that fits your needs, as well as affordability, is confusing but not when you do it on the Edufund App. The financial team with the app provides the right guidance so that the co-applicants do not have to suffer if any misfortune falls on the primary applicant.  Best Banks for Education Loans in India Read More Is it compulsory to buy education loan insurance?  It is not compulsory to opt for education loan insurance as the requirement to do so varies from one lender to another. For loans taken from govt banks, it is not necessary for you to get insurance. However, for some private banks or organizations, you may have to get insurance as a condition to take out the loan.  Most government banks let the applicant decide on the necessity of purchasing insurance on secured education loans.  Applicants applying for abroad education loans processed by private banks and NBFCs without collateral have to buy education loan insurance. It is a mandatory requirement as the lender has not asked the applicant to pledge collateral security against the loan.  Questions to ask before taking education loans Read More What is the amount charged as a loan insurance fee? The amount charged as a loan insurance fee varies from lender to lender as private lenders and government banks have different terms and conditions for the borrowers.  Government banks charge 0.5% to 1% of the entire education loan amount as an insurance fee for secured education loans. They offer loan insurance schemes via in-house loan insurance lenders.  Private banks and NBFCs charge 1.5% and 2% respectively of the entire education loan amount as insurance fees for unsecured education loans. If you are misguided or confused about the education loan insurance terms and conditions reach out to the financial advisors at the Edufund App for a consult at the earliest.  What is the payment process for education loan insurance? Once the education loan insurance is secured, the first question that comes to mind is whether the applicant will have to pay the required loan insurance fees to the lender immediately.  The best part about the insurance is that it is not required to make a separate payment for the education loan insurance fees as the due amount is adjusted with the total amount of the education loan. For example, if the applicant has applied for an education loan of INR 30 lakhs and the insurance amount is INR 30,000 then the approved loan amount is INR 30 lakhs + INR 30,000 = INR 30.3 lakhs instead of INR 30 lakhs. The burden of paying the insurance amount does not immediately fall on the applicant. The loan insurance fees depend upon the length of the loan tenure and if the applicant wants to lower the loan insurance fees he will have to lower the loan tenure.  Tips to manage abroad education loan payments Read More Benefits of education loan insurance Education loan puts a significant burden on the applicant because the financial responsibility of repayment is on him. The co-applicant is equally responsible for the total amount if any misfortune befalls the primary applicant. The benefit of purchasing education loan insurance is that the co-applicant will not have to pay the loan amount in case of non-repayment as the burden now falls on the insurance company.  Students who purchase education loan insurance get an additional 0.5% waiver on the loan interest rate. It is a relief for the applicant as the overall interest rates are reduced.  Collateral vs. Non-Collateral Education Loans Read More https://www.youtube.com/watch?v=TNVvKy460dQ Conclusion The education loan insurance acts as a protection for the co-applicant who will not have to bear the financial burden of paying the loan amount in case of non-repayment.  Applicants who do not have comprehensive knowledge about the education loan process and the related education loan insurance can consult our team of experts on the Edufund App and know about the whole process in detail. TALK TO AN EXPERT

An education loan is borrowed to cover the costs of post-secondary or higher education costs of students. Education loans cover tuition fees, textbooks and supplies, and daily costs while the borrower pursues a degree. Get 100% coverage for your education loan with EduFund https://www.youtube.com/watch?v=fufyFB9aMQI Germany - A world-class education system https://www.youtube.com/shorts/ly0C1VM7YFc Germany is home to brilliant minds such as physicist Albert Einstein and philosopher Karl Marx. International students who decide to pursue their studies can expect to encounter cultural diversity, friendly natives, and a high level of education.  Students would be relieved to learn that the vast majority of public colleges in Germany have now had their tuition costs waived. Students would only be needed to pay an administrative charge at the start of each term. The cost of living in Germany is deemed reasonable, putting less financial strain on Indian students interested in studying abroad. Overseas students will also be allowed to work part-time to help with living expenses, making life even more affordable. Overseas students may work up to 20 hours per week. This part-time work opportunity will help students reduce their living expenditures and provide them with important job experience in their subject of interest. Like most other universities, international students can take advantage of the many scholarship programs mentioned on university websites.  Germany's world-class education system, excellent industrial interface, innovative and research-based environment, and multicultural opportunities make it an outstanding choice for students studying abroad. Student loan for study in Germany Low tuition costs, a high standard of living, quality education, secure and safe environment are just a few of the features that make Germany an appealing study destination for students from all over the world. Germany has something for everyone. International students who want to further their studies may expect to encounter cultural variety, friendly natives, and a high level of education in Germany. Students would be relieved to learn that the majority of public colleges in Germany have already had their tuition costs eliminated. Students would only need to pay an administrative charge at the start of each term. Expenses covered under the education loan During registration, the university will provide you with documentation that clearly states the cost and the total amount required to complete the selected course. Please keep in mind that, while institutions in Germany do not impose a tuition price, students incur other expenditures during their residence in the country that are covered by the loan amount. However, an institution's loan would be purely for educational purposes and would not support personal expenses. The loan amount approved would cover: Tuition costs (if any) Spending on lodging Caution with deposit funds (security) Expenses for travel Study visits and project work. Purchase of books, a laptop, and office supplies Other required costs associated with completing the course https://www.youtube.com/watch?v=TNVvKy460dQ Documents needed for an education loan to Germany Education Loans are given to deserving students who want to study in Germany. However, even before the bank can execute the loan amount, the borrower must provide several documents. These are some examples: Admission letter from the college/university A completely updated application form Documents about the cost of study Identification evidence, proof of residence, and the borrower's PAN number Bank records of the student/guarantor/co-borrower Statement of assets for the student/guarantor/co-borrower Proof of income from the student/guarantor/co-borrower Additional read: Best ELSS Funds for child’s higher education Student loans in Germany from 1991 to 2020 From 1991 to 2020, this statistic illustrates the number of students in Germany who received a student loan. In 2020, 465,543 students received student loans, a reduction from 489,313 the previous year. The German academic year is generally split into two semesters: winter and summer.  The actual start and end dates of classes may vary depending on the institution or university attended, along with the nature of the course. In recent years, the number of first-year students has decreased in the winter semesters, possibly due to factors such as altering education laws and specific course acceptability rules or electing to pursue an apprenticeship instead of a degree. In 2020, German institutions issued 236,472 bachelor's degrees. This was a reduction from 2019. The average age of German first-degree university graduates has decreased in recent years, indicating that students are starting and finishing their studies earlier rather than later. The current average age is 23.6 years old. College expenses comparison Here is a list of nations based on the number of students, tuition costs, and average student loan debt. Germany is one of the countries where college tuition is not charged, albeit this varies depending on whether you are a local or an international student. Conclusion German universities provide a diverse range of courses and degrees. In terms of topic areas, law, economics, and sciences had the most students enrolled, followed by engineering.  Managing your expenses is a critical obstacle you must overcome as an international student. It's advisable to start planning your money and how you'll fund your living cost and educational expenses in Germany. Parental income, financial assets, part-time employment, scholarships, and student loans are all options for funding your studies in Germany. Consult an expert advisor to get the right plan TALK TO AN EXPERT

For parents who desire to send their children to continue higher education but cannot financially do so on their own, an education loan is certainly a blessing. Many people eventually sell off family belongings, including gold, to pay for their children's further education. With the aid of an education loan, you may preserve these priceless possessions while paying for your child’s education. Few loans for higher education may need collateral, and few won’t. Many education loans from the country’s top lenders are available to pay for different courses. Whatever form of student loan you decide to take out, you must have a reliable repayment schedule in place. By doing this, you or your child will be able to pay the monthly payments without going into default. You've come to the right place if you need assistance managing student loans. Apply for Education Loan Tips to repay education loans faster 1. Advice for managing student loan debt Are you soon to take out a student loan? Continue reading for some practical advice on managing student loans. 2. Select a loan with a shorter term A brief tenure is a fantastic choice for managing student loans. While a shorter loan term can result in higher EMI payments, it will also enable you to save significantly on interest payments. Now, this does not imply that you choose EMIs that are too expensive for you to afford. Instead, go with the shortest tenure you can handle. To figure out how much you can afford to pay each month for your student loan, use an EMI calculator. How Does Education Loan Work? Read More 3. Pick a suitable repayment strategy Choosing the appropriate repayment option is the best method to manage student loans. You will have several repayment choices from your lender. Pick the option that fits your budget the best. You must be mindful of the duration of your moratorium. You will then be aware of how much time your child has left to obtain employment and save funds before the first EMI is due. Do not forget to consider how much they can expect to make in their first job. You can determine the appropriate tenure and EMI with the help of all of this. Without such careful planning, you can end up selecting an EMI that would be very expensive for both of you. https://www.youtube.com/watch?v=9EAyvncisU4 4. Set up automatic payments Missing loan installments might seriously harm your child's financial situation. Their credit score may be impacted, and they may incur late fees as a result. Just ask them to set up automatic withdrawals from their savings account so you won't have to worry about missing payments. They won't incur any missed EMI charges because these payments will be made on time. They will be able to retain a good credit score with regular payments. In turn, a good credit score is beneficial for making future loan applications. Education Loan Repayment Strategy Read More 5. Pay off interest during the moratorium Your payments don't start right away when you take out an education loan. They start after the moratorium has ended. The moratorium is a six-month or one-year period that starts when you finish your course. The interest on your child’s school loan starts to build the instant they receive the funding, even if your payments won't start until the moratorium is over. Therefore, it would be good to begin paying this interest while your child is still attending school. The best student loan advice you will likely receive is this. While still in college, your child might want to think about having a part-time job. The money they make from this job can be used to pay off their student loans. Either of you will significantly reduce the total amount that must be paid if you pay off this simple interest before it accumulates. 6. Make additional loan repayments Did you get a pay raise at work? Or perhaps your relatives gave you some cash as a gift. You might want to think about increasing your student loan payments if you get some extra money. This is a fantastic strategy to reduce the overall payback burden. Making larger payments on your student loan may enable you to pay it off earlier. One of the best pieces of advice for properly managing student loans is this. Check with your lender to see if there are any prepayment charges, though. Before going through your loan application process, you can check the fine print or ask your lender whether there are any penalties. https://www.youtube.com/watch?v=fufyFB9aMQI Conclusion The repayments of a loan can be very stressful. You and your child should do whatever you can to make it easier. These points will help reduce the burden on them and help them go through the process. If after this there are any questions, advice, or information you need, EduFund’s team of financial advisors is available to talk to you FAQs Can I repay my education loans before the scheduled time? Yes, most education loans allow early repayment without penalties. Check with your lender for specific terms. Are there benefits to repaying education loans early? Yes, early repayment can save you on interest costs and improve your credit score faster. What should I consider before repaying my education loans early? Ensure there are no prepayment penalties, evaluate your financial situation, and prioritize higher-interest debts first. Is there an option to repay your education loan before time in India? There are NO penalty charges for prepayment. You can prepay your education loan anytime. Can we close the education loan before tenure? Before prepaying your education loan, you should consult your lender to understand whether they will levy any kind of prepayment penalty. In India, there are no penalties on prepayment but it's important to consult and check to avoid extra payments. Connect with our Loan Experts

What does refinancing a loan mean?   Refinancing an education loan lets a new lender take over the existing loan and pay out the old lender. The new lender typically offers a lower interest rate on your loan, may offer a refinancing bonus, and provides better pay-back terms and service, making the shift attractive.    Why do students refinance education loans?   Most education loans have a tenure ranging from 5 years to 20 years. During this tenure, the loan rates may change in the market, and the current lender may not pass on the benefits of lower interest rates to the borrowers.    To ensure your education loan has the lowest interest rates, you can monitor the education loan market closely after taking the loan. Even a slight lowering of interest rates can impact the repayment tenure or per month EMI. As your child starts their career and begins to repay the loan, every small amount saved will enable them or them to repay the loan faster.    There are usually three main reasons to refinance an education loan:    To optimize the monthly pay-outs   Lower the interest rate   To change the loan tenure   Additional read: 5 ways to make getting an education loan easier for your child What are the eligibility criteria to refinance an education loan?   To refinance an education loan in India, the student should have taken the loan to pursue graduation or post-graduation degrees from well-known institutes and colleges.      The repayment process of the education loan usually begins once the student has already started earning.   Accordingly, the student should have completed the course and either could have begun the repayment process or be in the process of starting repayment.    The borrower must have a good credit history and score, with financial resources in terms of a regular salary to pay back the EMI month after month. Most lenders will also check on the other debt that the borrower may have.    Dos and don’ts of refinancing an education loan   Apply for Education Loans While refinancing an education loan, ensure you do the following:   Do due diligence before rushing in to shift the loan to a new vendor. In India, refinancing a loan may invite charges from the old and the new lender. The Old Lender typically charges a foreclosure penalty, and the New Lender has processing charges upfront that will add to the overall payout. Before deciding to shift your lender, check on the additional costs that the refinancing will incur.   Monitor the education loan market carefully. Changing rates can impact the total amount payable by you considerably. When you find the market rates dropping, you can speak to your existing lender to refinance your existing loan at the current rate or connect with a new lender for the same.    Opt for a fixed interest rate, and explore the possibility of a student loan refinancing bonus. These amounts can considerably impact young students starting out in their careers.    If your child’s refinancing application has been rejected initially due to low salary / insufficient funds, a promotion or salary increase can make them eligible later. Ensure your child uses these career developments smartly to refinance the education loan.    Instruct your child not to default on the student loan as it impacts the individual’s credit score in the long run. Poor loan repayment habits will affect their chances of getting a refinance and even new loans in the future.    To see how a change in interest rates will affect the monthly pay-out and tenure of your education loan, check out our Loan Calculator. This will help you understand the benefits of having the education loan refinanced.    If your refinance application is rejected for any reason, you will do well to start saving money through our various investment options and build your own corpus to settle the education loan at the earliest. Early loan repayment helps you minimize the interest you are paying and keeps your overall payout under control. FAQsIs it good to refinance student loans?  Refinancing student loans can be a good financial decision if you can secure a lower interest rate than your current loans, potentially reducing monthly payments and saving money over the loan's lifetime. However, it may not be suitable for everyone, so carefully evaluate your situation before deciding.  What happens if I refinance my student loans?  When you refinance your student loans, you basically take out a new loan with different terms to pay off your existing loans. This may result in a lower interest rate, a different repayment term, and a new lender. It can lead to lower monthly payments, cost savings, or both, depending on the terms of the new loan.  What is not a good reason to refinance a student loan?  Refinancing may not be a good idea if you're relying on federal loan benefits such as income-driven repayment plans, loan forgiveness programs, or deferment/forbearance options. Refinancing federal loans into a private loan could make you ineligible for these valuable benefits. Additionally, if you have a low credit score or unstable income, refinancing may not yield favourable terms.  Is it beneficial to refinance a loan?  Refinancing a loan can be beneficial if you get lower interest rates, reduced monthly payments, or faster loan repayment. It can save you money and simplify your financial situation. However, the benefits depend on your specific circumstances, so it's essential to carefully assess the terms and compare them with your current loan before refinancing.  TALK TO AN EXPERT