Understand the loan
The first and the foremost thing to keep in mind before applying for the education loan is that one needs to understand the student/course eligibility criteria and the aspects , which the loan covers to complete the education.Besides tuition fee of the course the education loan covers all the expenses payable to college viz. examination/hostel/library fee, purchase of books/equipments, caution/refundable deposits, insurance cover, travel expenses/passage money for studies abroad and other expenses required to complete the course.
Be confident of the targeted college:
You must check out the history of performance regarding placements of the concerned college, in case, it is not a very renowned institute, and you have to be very realistic in approach while joining because if you don’t achieve good financial standing after completion of the course, the debt will convert to an unsustainable burden.
Exhaust all your resources first:
Do not apply for the full amount in haste. The loan amount should be as much as you actually need. First try to collect all of your possible resources then find out how much more is required. This will help you to keep your principal and interest amount lower and you will gain the benefit of this exercise while repayment process.
Study the available options:
Do not hurry, do your homework, compare all the details, go in depth of the scheme then choose for the best suitable option. Some bank may be offering you better interest rate but on the other hand the same bank may be charging additional processing fee, whereas bank offering higher interest rate may not be charging any processing fee and ultimately you will be supposed to pay back nearly same amount to both the banks.
Know about the grace period:
Make yourself aware with the grace period very clearly because you must start repayment as scheduled or else bank will start imposing delayed payment charges and in worst cases education loan can go for default also.
Choose the right repayment option available:
Few of the banks provide the facility to choose options for repayment. Consider all the possible factors that can affect payment schedule and then decide on the scheme as well as repayment option.