Given rising costs, while education loans have become crucial as a means to fund higher education, there are also myths surrounding the same that individuals continue to believe are the truth. It’s important to debunk these myths to be able to make informed decisions about funding your education.
Here’s what you should know -
- Education loan terms are the same for everyone
Every student who applies for an education loan has a unique profile, and similarly, each lender has their own criteria for sanctioning a loan. So while you believe that you may not be eligible for a loan, you might just be pleasantly surprised!
- Self-funding is better than an education loan
When you dip into your savings, you’re essentially utilising your contingency funds, money that you can instead use to secure your future. It is prudent to avail of an education loan while simultaneously investing your savings, so that you get a quality education as well as a stronger personal finance situation. What’s more, an education loan comes with attractive benefits such as tax relief that you can’t avail of when you self-fund your studies.
- Processing an education loan is a tedious process
It’s commonly believed that it’s time consuming to get your education loan processed. On the contrary, you’d be surprised to learn that new-age lenders not only simplify the process, but also ensure a quick turnaround time so that you can look forward to your higher education without any stress around finances.
- Education loans don’t affect your credit score
Based on your repayment track record an education loan can help you build a robust credit history to secure your financial future. It’s advisable to make timely payments to build your credit and at the same time, strengthen your credit score.
Choosing the best education loan
It is crucial to debunk the myths surrounding education loans in order to be a smart borrower. Connect with a new-age lender such as HDFC Credila to get an education loan that offers flexibility and takes your individual requirements into account.