The Truth About Student Loans in India: What You Should Know Before Taking One

Many Indians have student loans, but they have certain significant issues. Before you borrow, keep in mind the following.

One can find several kinds of loans, Public Against Private

Lower interest rates and more flexible terms are features of government loans—such as SBI Education Loans. Although their rates are sometimes higher, private loans could be faster to process.

Loan Terms and eligibility

Usually, the course and college you are applying to determine the loan amount. Documents including your admission letter, identity proof, and income statements will help you show your eligibility.

Interest Rates and Term of Repayment 

While government loans may have rates as low as 7%, private loans can run up to 15%. Usually starting repayment after the course ends, you will have to consider the rate increase during the grace period.

EMI Options & Moratorium Period 

Usually one to two years following graduation, a moratorium period allows you time before you begin to pay back. Some banks also provide flexible EMI choices depending on your employment status.

Scholarships and Loan Waivers 

Certain government programs or scholarships grant either partial or complete loan waivers. Investigate the alternatives that are at hand. In essence, borrow sensibly and avoid overindulgence. With a well-defined payback schedule, student loans are doable.