Education loan: merits, demerits and the alternative
Those days are a thing of past now when students had to quit their studies due to financial constraints. When students had to search in lieu of the finances to fund their studies, the side work they had to do while carrying out their studies, the land they had to mortgage to fulfil their dreams. This is mainly due to the fact that education loans have now emerged as a boon to the students from all backgrounds to fulfil their career goals.
An education loan can be briefly defined as the money borrowed to finance education or school-related expenses. It is designed to help students, pay for the school fees and other associated fees including- accommodation, food, tuition fees, books and other related expenses. Education loans are provided mostly by the banks to those students whose parents do not have adequate finances to finance their studies. Precisely, it is provided to give one, an opportunity to study and pursue his education and getting a secure job in the future.
Merits of education loan
Education loans provide immense benefits by motivating the students to carry on their studies. Helping with financial needs and easy accessibility make it the first choice, for any student (having financial constraints) thinking to pursue his education. Some easy to spot benefits includes-
- Easily available
Private Banks are more than happy to serve you if you can provide them with proper documentation. Fast process of loan sanctioned and its availability makes the educational loan the finest of the choices for students looking for finances.
- Easy and deferred repayment
One has to pay the loan amount only after the completion of the course or after the job, whichever is earlier. Unlike other loans where you need to pay EMI, educational loan sets free oneself from the clutches of these dangling EMIs. You just need to focus on your studies and let the bank think about your finances.
- Lessens the burden
Not only for the student, who otherwise has to do side works to support his studies, but also for the parents, who could not afford to provide the best condition suitable to their children for studies. Education loans are boon to society and make it less stressful and provide it with much-needed stability.
Demerits of education loan
Like every coin has two sides, education loans have some disadvantages too. Some of the key demerits of education loan rope in are-
Banks are highly precise when they are to offer loan to anyone, hence they look for the deserving students, who first have to prove their worth to deserve the said loan. Other to it the documentation requirements make it tough for everyone to avail loans.
- Pressure of Repayment
Once the loan has been availed, there is always a pressure of the repayment. The loans come up with interest and a stipulated time period within which one has to repay the loan. Many a time this adds to the pressure on the students to do well, failing which some students even take the extreme steps of suicides.
So it is totally up to oneself if he wishes to take the educational loan or not. Otherwise, there is always an option for the scholarships which do not come with any terms and conditions. Neither have you had the pressure to repay nor the added responsibility to do well in every aspect. Scholars of India is one such platform whereby you can win scholarships worth 1 Lakh rupees and go on fulfilling your dream without having any extra pressure.
SCHOLARS OF INDIA is an initiative of schotest.com in association with SAFED, to provide fellowships to the students to unlock their future and unravel their academic dreams. It aims to provide financial assistance to meritorious students. Students from class 5th to 12th can participate in this scholarship exam and will be rewarded with Cash Prizes, Medals, Trophies, excellence certificates along with the excursion tour for the top performers across the nation.