Know How to Get the Best Student Loan Interest Rates

How to Get the Best Interest Rates on Your Student Loan in 2024

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Student Loan Interest Rates – Introduction

You should always choose the lender that gives you the best student loan interest rates, the best repayment terms and affordable fees. Banks, NBFCs or financial institutions provide student loans so that students can pursue higher education in India with less financial stress. Any Bank or NBFC can provide you with a reasonable student loan amount along with speedy disbursals and easy repayment options.

How to apply for Student Loan?

Studying higher education is now a priority for many students, but it comes with tuition fees that can range into several lakhs of rupees. Due to the hefty expense and higher inflation, parents are now opting for alternative funding choices such as the student loan. This instrument can help parents pay for their child’s higher education and address all other expenses associated with it.

Steps to Apply for student loans 

The process to apply for student loan – online or offline – is very easy. Follow these simple steps to get started right now. For the offline process, visit your bank, NBFC, or financial institution and submit your student loan application. The lender will initiate the process by verifying your documentation and evaluating the course of study for which you wish to borrow funds. Their relationship manager will then contact you.

If you wish to opt for a completely online process, go to the website of the bank, NBFC, or financial institution of your choice and fill out the application form. To get a personalised offer, you’ll need to submit your personal information and property details, as well as your parents’ income information. An authorised representative will contact you once you’ve submitted your information. Here is how you can apply for Varthana Student Loan.

How to get the best student loan interest rates 

Student loan interest rate is the amount charged on the principal loan amount. Whether you borrow money from a bank, a non-bank financial institution or another financial organisation, you will have to pay an Equated Monthly Installment (EMI), which is a monthly payment that covers both the principal and interest on a loan. It is the cost of borrowing money from a bank or other financial institution.

Factors that determine Student Loan EMI:

  1. Student loan interest rate
  2. Loan amount
  3. Repayment tenure

The lender charges an interest rate on the loan during the repayment period. Interest rate depends on the course duration, loan amount opted for, CIBIL rating and repayment history. So here’s how to get the best student loan interest rates in India:

Ensure you meet the eligibility criteria

Lenders have different eligibility requirements. To make sure you qualify for a student loan, check the eligibility conditions of your desired lender. This way you can avoid having to borrow from a lender at a high interest rate due to qualifying issues. Being eligible also benefits you since you can negotiate the best interest rate with the lender. This way you can enjoy affordable interest rates to pay for tuition fees and lifestyle needs.

Look for a reputated lender

In India, different student loan companies have different interest rates. Consider borrowing from your lender based on your long-term relationship with the institution. Check for these factors first:

  • Loan with the best interest rate to make repayment easier
  • Convenient EMI Options
  • Longer tenure so your EMIs are reduced and show the lender repayment potential

Having a good credit score

When opting for a longer and more reasonable tenure, a good credit score is important. Student loan is obtained jointly with parents. Parents must submit proof of income as well as other documentation in this scenario. If you have a co-borrower with a high income and a good credit history, you will be able to get the best interest rate on the borrowed amount.

Academic Record is important

If your score is good and you are accepted to a good college, you will be able to borrow money from a bank/NBFC. Your loan request will be approved quickly as per your marks and other academic achievements.

Reputation of College or University

To get the best student loan interest rates from a Bank or NBFC, you must get into a top college or university. If you are accepted into one of the best schools or educational institutes in India, the lender may provide relaxation on your student loan interest rate.

Varthana student loan is the most cost-effective way to pursue higher education without jeopardising one’s bank balance. If the course you want to take and the institute you want to attend are both on Varthana’s database, you may easily apply for a student loan based on your qualifications. Apply now for a student loan here.

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