5 Myths vs. Facts about education loans that you should be aware of￼
Myth 1: I can only get an education loan if I provide collateral as security
Fact: Many lenders also provide education loans with no collateral. If you are looking for collateral-free student loans, you should choose an education loan provider that offers unsecured loans. However, because providing collateral as security can lower interest rates, students prefer secured loans.
Myth 2: An education loan only pays for tuition
Fact: A student loan should ideally cover all educational expenses. In their student-centric financing solutions, niche education-focused financers typically cover the total cost of education. Before you take out a loan, it is best to discuss this with your loan provider. Kuhoo covers the entire cost of education, including tuition, study materials, equipment costs, travel expenses, and more.
Myth 3: My EMIs start soon after I take out an education loan
Fact: No, EMIs do not begin until the moratorium period expires. You are exempt from making EMI payments during the moratorium period. EMIs begin once the grace period has expired, usually a few months after graduation or after finding work. You can also get an extended EMI repayment start date with Kuhoo so that you can focus entirely on your studies.
Myth 4: Self-financing is preferable to taking out a student loan
Fact: A student loan is a wise investment. Self-financing will deplete your savings, putting you in a difficult situation during an emergency. If you take out an education loan, your savings and investments can continue to be safe havens to which you can turn in times of need.
Myth 5: Student loan terms and conditions are the same for all students, regardless of course
Fact: Education loan financers profile student applications based on coursework, study destination, future career prospects, academic scores, entrance exam scores, and other factors to determine final interest rates, disbursal amount, and other terms and conditions.
Student loans provide a new avenue for students to achieve academic and professional success without depleting their savings or relying on family or relatives. Do not let these myths prevent you from achieving your objectives. Kuhoo is committed to assisting you in achieving your financial objectives. Kuhoo offers education loans for study in India and abroad, as well as executive loans.