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If you want to go abroad for higher studies then don’t wait more to start your education loan search. Indiaacademic.com is one of the leading website where you can get the best information for Education Loan in India from different banks. If you’ve made up your mind about pursuing higher studies in India or abroad, don’t keep the financial planning for the last leg of your preparations. Start early, scout around and settle for the education loan option that’s best for you.

In the education loan business, the marketplace is teeming with options, so it can get really confusing at first. At the start of your search, you’ll be confronted by the basic question: What’s the better option — scheduled banks or non-banking finance companies? Most of the Indian banks offer education loans for studying abroad up to a maximum of 20 Lakh. If you want loan more than 4 Lakh, you’d have to contribute 15 per cent of the total cost of education and the bank will pay the rest.

HDFC Bank Education Loan is one of the better loan and especially for the disbursement of education loans, does not ask for any margin money and is flexible on collaterals. Study the terms and conditions of both and go for the more flexible, cost- effective option. But to get the best education loan deal, you’ll have to negotiate with the lender. Based on the net worth of your parents, you can negotiate on the 15 per cent margin or on the collateral requirements. The stronger the net worth, the lower the collateral requirements.

Admission to the best institutions in india, such as IITs and IIMs in India, can get you special interest rate. Girls get rebates on interest rates. You can also get freebies such as a complimentary debit card and accident insurance with education loan. Processing and pre-payment charges vary from bank to bank — some process a loan gratis, but others charge a fee, which may or may not be refundable.

Getting a education loan isn’t all that difficult, but its repayment can become a headache if you don’t plan early. It’s best, advise experts, to pay back in short tenures, because the longer the tenure, the more you’ll end up paying. Repayment during the moratorium period can get you discounts on interest of up to 0.5 per cent. Depending on your repayment schedule, you could also avail of holiday discounts.

It’s possible to earn enough while you study to repay these loans. Students can work up to 20 hours per week while on a full-time programme in the UK, so depending on the level of their loans, this may help to cover the costs.

If you’re over 21, you can earn around £ 120 a week, the national minimum wage — good enough to partly pay back your loans. Better still, if you do well in the first couple of semesters, you may get a fee waiver or even qualify for a partial scholarship, which will make repayment that much quicker.

Another option that Indian students, especially those who have relatives in America, are warming up to is loans from a US bank at a favourable rate of interest. Most US universities have tie- ups with leading banks that provide student loans. If you can get an American citizen to stand guarantee for you, you can take this route. The issue of repayment can become an irritant when you go for your visa interview or are quizzed by immigration authorities at the airport. Visa authorities are as much concerned about repayment as the banks that disburse loans — no country wants defaulters within it shores.