Know About Education Loan Pitfalls And How To Avoid Them

Outlook Money

Financial stress

Not going through the terms of an education loan properly, and overborrowing often leads to long-term financial stress 

Financial Stress

Common Mistakes While Applying For The Loan: Insufficient Research

Applying for an education loan without proper research and comparison of interest rates from different banks can lead to one missing out on the best deals available

Research

Negligence to Loan Details

It is advisable to seek professional help and guidance to check out the loan details. Aspects, such as processing fees, coverage of education costs, and repayment options should be checked 

Loan Details

Turnaround Time

It is also important to calculate the time it takes for the loan processing - starting from loan application till the time the loan is sanctioned 

Time

Over-borrowing

Availing of loan amount more than what is required can lead to higher loan repayment and interest outgo. So, it is better to calculate the interest rate beforehand

Over Borrowing

Repayment

One should take a disciplined approach when it comes to loan repayment 

Compiled by Syed Muskan

Repayment