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6 Myths about Education Loans You Need to Know

Education is essential for a bright career. Everyone wants a good education from a well-known institute. But what happens when there is a shortage of funds? That is not a sign to stop everything altogether and put life on hold. Student loans can be beneficial for those who are in need. But the thing is that when the course is over and the time comes for the repayment, there is so much confusion caused by myths and other bad advice.

It is a well-known fact that incomplete information can lead to some serious trouble. Hence, it is essential to know every little detail about the repayment method to avoid getting caught in any myths. Here are some of the myths that you need to know:

1. It is not a source of income:

After taking an education loan what needs to be understood is that it is an investment that will help in the future. It should not be treated as a source of income. The student who is taking the loan should understand this and spend the money carefully. So, if the money is spent uncontrollably, it would lead to a burden during repayment. It is not an extension of income.

2. Refinancing the loan is not a bad idea:

What is expected from a good loan policy? We expect lower interest rates and a longer repayment period, and that could be achieved by refinancing the student loan. Refinancing the loan makes the repayment easier.

3. Repayment plans based on income proves to be good for credit:

These income-based methods of repayment help a lot in lowering the monthly installments of repayment as a student. These plans provide the borrowers with a chance to manage the repayment expenses in a better way. The monthly repayment would be reduced, but the interest rate would remain intact as per the plan that you considered.

4. A little research will not do any harm:

It is always best to stay well informed. Hence, it is advised to conduct a little survey and compare all the loan plans before deciding which one to select. It is best to check the list of NBFC companies in Mumbai to get more information about the loans and the terms and conditions.

5. Lower grades do not mean- no loan:

It is one of the most common myths that the students fall for. Having lower grades does not mean that the loan will not be approved. What is needed for the loan are a guarantor and a genuine and confirmed admission at an institute.

6. Selection in some top institute won’t get you a discount on the loan:

Getting admission to some top institute in the country or even overseas will not mean that there will be some discount on the repayment of the education loans. There is no such provision.

These were some of the myths that are doing rounds today. For a student wishing to study in Mumbai and get an education loan, it is recommended to check the list of NBFC in Mumbai as the NBFC companies in Mumbai provide the best loan and financial plans for a student who desires to learn something.

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