Education Loan: These 5 things should be kept in mind while taking an education loan, very important for both students and parents..

In today's era, the cost of higher education is increasing rapidly, especially for professional courses and studies abroad. In such a situation, an education loan has become an important option, through which lakhs of students can fulfill their career dreams. But taking an education loan without proper planning can become a financial burden in the future. Therefore, it is very important to pay attention to some important things before taking a loan.

Here we are telling 5 important things to keep in mind while taking an education loan, which every student and parent should know—

1. Evaluate the course and college

Before taking a loan, think about the scope of the course or university you are taking admission in in the market. Is it easy to get a job from that course? Does the university have a good placement record? If the Return on Investment (ROI) of the course is not strong, then there may be trouble in repaying the loan.

2. Decide the loan amount wisely

Many times, students try to cover the entire expense with the loan, which increases the burden of EMI later on. Try to cover some part of the loan yourself through scholarship, savings, or a part-time job and take the loan only as much as required.

3. Understand the interest rate and moratorium period
The interest rate on an education loan varies depending on the bank and the course. Usually it is between 8% to 12%. Also, understand the moratorium period, i.e., the period when EMI starts after the completion of studies. Some banks give 6 to 12 months after the completion of the course.

4. Know the responsibility of the co-applicant
An education loan is usually taken with parents or guardians as co-applicants. This means that if the student is unable to pay the EMI, the bank can recover it from the co-applicant. Therefore, keep in mind the financial condition of the family.

5. Plan the repayment in advance
Think about what the plan will be to repay the loan after getting a job during studies. What will be the EMI, how many years will the loan be repaid, and what could be your potential income? Plan all these things.

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