With rising education costs, it becomes difficult for any parent to entirely fund the expensive education program of the child. For example, a 4 year B.Tech programme in India can range between 5-10 Lacs while a two years MBA from premier institute like IIM can dent upto 12 to 20 Lacs in parents pocket. Studying abroad is anyways known to be expensive and can cost upto 50-60 Lacs. In such scenario, an education loan becomes a strong financial support to help child fulfil his dream education and become what he/she intends to.
There are enough compelling reasons to take an education loan:
DocumentationKYC Documents of both Student & Guarantor
S4L Expert's Advice
Student loan help the student understand value of his education expense so adds little seriousness for the same. Timely repayment can help student build strong credit history early in life. Conversely, defaults can affect the credit history of student and co-applicant.