Here's what your education loan should cover

Pursuing higher education can be overwhelming, with the rapidly rising costs associated with it. Often, this can cause a strain on the family finances, with the most common way of funding education involving dipping into savings. With education loans gaining prominence lately, students and parents now have a viable alternative that allows higher education dreams to be fulfilled without having to worry about finances.

There are several financial institutions that extend education loans to help you finance your studies in India. However, before you narrow down on selecting a lender, you should do your homework to understand exactly what expenses your education loan covers.

Your education loan should cover these expenses:

• Tuition fees
  The tuition fee as prescribed by the college or university forms a major chunk of your education expenses. Ensure that your loan covers not just tuition fees, but other expenses associated with your tuition, such as laboratory charges, exam fees etc.
• Accommodation & other living expenses
  If your college or university is away from your current place of residence, ensure that your education loan also covers the cost of accommodation and related expenses. These include daily essentials, local transportation, sundry expenses, etc.
• Travel costs
  Even if you're planning to pursue your education in India, your education loan should cover the cost of airfare if your study destination requires you to relocate.
• Ancillary expenses
  Before you know it, you're ready to begin your academic life, and the expenses have added up! Be sure your education loan covers ancillary expenses related to your studies, such as the purchase of a laptop, books and periodicals, etc.

The right education loan

It's important to have the right education loan to give wings to your higher education dreams. A customised, new-age education loan such as one from HDFC Credila offers up to 100 percent finance that covers not just tuition fees but also ancillary expenses.

To know more about what makes an education loan from HDFC Credila a prudent option, log on to www.hdfccredila.com today.

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