By Rupeezo | 27th, Feb, 2023
Looking for a student loan, but worried about the high-interest rates?
Well, Rupeezo is here for the save. The pursuit of higher education in India or any other country is a costly affair. And student loans are the most feasible way to avoid financial strain.
However, finding a suitable loan that suits your requirements and helps you secure a low education loan interest rate is no easy task.
Interest rate is the additional amount charged on the principal amount of the student loan. It is crucial to find out ways to lower this amount as the student loan interest rates can be hefty.
Taking educational loans can prove to be worthwhile, given that you get the loan from trusted providers.
Applying for a student loan is not only easy, but when you apply for it online, you get various benefits such as tax rebates on the loan interest, the facility to cover other study-related expenses besides the college fees, etc.
Now that you are aware of some benefits, let’s get straight to the tips to secure low-interest student loans.
First, you have to understand the two main types of loans, which are:
Secured loans require you to pledge collateral such as property, whilst unsecured loans can be availed without securing collateral against it.
For obtaining a student loan, go for banks or NBFCs that provide unsecured student loans, as pledging collateral can put financial stress on your family.
Also, many legitimate loan providers offer flexible student loans along with the lowest education loan interest rate. Also, you can get low-interest rates even on unsecured loans.
The eligibility requirements for student loans vary from lender to lender. You have to do some research to find out the different eligibility criteria that lenders have for a student loan.
Make sure you qualify for the eligibility criteria before you choose the lender. Conforming to the loan requirements works in your favour as you can negotiate with the loan provider.
This enables you to avoid heavy interest rates, get low student loan interest rates, and aspire for a great future with less hassle.
Check your eligibility for an education loan now.
Many universities in foreign countries offer scholarships or grants for eligible students. You can also get grants from your school, government agencies, or your previous employers.
This will help reduce the amount of student loan you need and eventually will lead to lower student loan interest. Be proactive and start looking for scholarships so you can reduce the borrowing amount and get your education easily financed.
For unsecured loans, the credit score is the only factor that can help you land feasible student loans with low-interest rates. A good credit score can help you easily finance your education so you do not have to pledge collateral.
Also, you may get qualified for the lowest education loan interest rate as well. For a better credit score, timely pay your credit card bills, and do not take furthermore credits. With a sound credit history and good credit score, you can get an education loan from credible providers without worrying about high-interest rates.
In case you do not hold a good enough credit history to make you eligible for an unsecured student loan, then do not fret. For availing of low student loan interest rates on your student loan, you can get a co-applicant.
A co-applicant is someone who applies for the loan with you and agrees to take the responsibility of repaying the loan. By getting a co-applicant with good credit history, you can get your student loan approved with a low-interest rate.
Your past academic achievements also play a crucial role in deciding the student loan interest rate on your student loan. If you aspire for higher education, then take your academics seriously, and carefully choose the university or course that you wish to enrol in.
This will all contribute to getting the lowest education loan interest rate as the loan providers may get influenced by your academic records. Your score of 10th or 12th and other educational achievements will help you get your student loan approved with low-interest rates.
Before taking a student loan, decide how you are planning to repay it. Creating a repayment plan in advance will help you choose the right type or amount of loan for you. Many banks or lenders provide a grace period, whilst other requires you to start repaying immediately.
You can also pick between fixed and variable interest rates. Fixed interest rates stay the same throughout loan tenure, and variable interest rates vary over time.
To create a feasible repayment plan, you can go for institutions that provide fixed student loan interest rates. Have a look at your financial situation or other loan requirements to find a loan with a low-interest rate.
You can also get an estimate for your monthly instalments using an EMI calculator.
Conclusion
Securing low education loan interest requires research, comparing the rates offered by different providers, preparing in advance, and carefully considering the terms and conditions.
By keeping the above-mentioned points in mind, you can find the right lender to get a student loan with low-interest rates and lessen the financial impact on you and your family.
Rupeezo is one such trusted loan provider that provides low-interest rates and flexible repayment solutions.
Also, there are no hidden charges once you get the loan approved by us. Our extensive network of banks and NBFCs ensures that our customers can get an education loan without pledging collateral, at low-interest rates, and following a seamless process.
Get your Instant Student Loan Online now at nominal interest rates.
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