What makes taking up education loan through NBFCs a good idea

While you cannot put a price tag on dreams, unfortunately with the ever-rising cost of education, proper funding becomes extremely important to enable young students to realize their dreams. This funding usually comes in the form of student loans. There are a number of financial institutions present across India that offers student loans. You can visit the websites of such institutions, use the EMI calculator for education loans present there, compare rates, and subsequently select the ideal type of loan to borrow from the right institution.

When thinking about education loans, the very first thing that would immediately come to your mind would be typical bank loans. However, today a lot of banks in the public sector have become more stringent with their loan offerings, after struggling to deal with NPAs (Non-performing Assets). In this situation, taking up a loan from NBFCs (Non-Banking Financial Corporations) would be a viable alternative.

The key difference between an NBFC and a bank is that the latter lends money to the debtors using funds of the people who have deposited money with them; on the other hand, NBFCs take money from investors and financial institutions to lend money to a debtor. In comparison to banks, NBFCs do have fewer regulations and provide more flexible funding options.

Here are a few of the top advantages of taking up an education loan from an NBFC: 

• The biggest advantage of choosing to borrow funds from NBFC is that they tend to cover a wider range of courses and educational institutions across the globe in comparison to banks. Most banks have quite restricted terms when it comes to granting educational loans, especially in terms of destination and course. 
• Having lesser regulations in place than most banks, the lending process of NBFCs is way more relaxed and faster in sanctioning and disbursing loans. Moreover, these institutions are also more likely to offer a number of customized solutions that might be particularly suited to the needs of certain students.
• A lesser amount of paperwork is needed when obtaining loans from an NBFC in comparison to banks. 

You can find an EMI education loan calculator on the website of most NBFCs that would help you to gain an understanding of how much you would have to pay on a monthly basis to repay the funds.