Bangalore: Education has undoubtedly become a very expensive affair. Most of the people find it difficult to even fund their education with the existing resources they have. For majority of the student population, their future education plans depends on the education loans they acquire from various national and a few private banks to secure their life. Applying for an education loan sorts the issue of funding your education. But how sure are you that you will be granted the loan you claimed for? There are several scenarios where hardly a few students were granted the education loan, while the other applicants were rejected. You would be astonished to know the grounds on which these applicants were rejected. Stating an example of such a case, Trivedi who is a retired school headmaster went through a tough time when his son Rahul's application was rejected. The reason being his home address was in an area which was blacklisted by the banks. Similarly Kavita's application was rejected by the bank on the grounds that the professional course she had applied for does not match their parameters. The bank before granting the loan to the students has a certain criteria set before them. And these criteria's are the deciding factors on the basis of which the bank provides the loan. So given below are some important factors to remember while availing an education loan. Things to remember while applying for an education loan Confirm the college: Be very sure regarding the college you want to join. It should be a well known institution providing good placements. Because these placements will help to repay the loan amount. If the college fails to provide these facilities, then paying the loan will be a problem. Don't take excess loan amount: Do not apply for a huge amount. Based on your demands it is advisable to borrow only that much of money. Get a correct estimation of the resources you already have. This will help you to keep your principal and interest amount lower and you will gain the benefit of this implementation while repayment process. Have the Pros and cons of availing the loan placed before you: It is very helpful if you go through the various schemes available and so that you have few options while availing the loan. Because at times certain banks provide loans at low interest rates while charging more on the additional processing fee. And few may have heavy interest rate and no processing fee. So get details from various lenders, compare the value and select one that best suits your criteria. Have the grace period confirmed: When you take a loan there is a grace period allotted to you by the bank i.e. the time taken after finishing education to make the first payment. Be clear with the dates because any failure in the payment the bank will impose delayed payment charges. You must be left with some scope of rescheduling of repayment process in order to avoid extra charges and other troubles. Repayment option: Banks provide a few repayment options. So choose wisely on the kind of repayment option you would want to avail. There are different ways to repay the loan through cheque, Pay directly to the bank. In case you get a job that requires you to travel abroad then how will the payment be made? Hence keeping all this in mind it is necessary to choose the right repayment option. Work out the actual loan amount: In the entire process of availing a loan it is very necessary to calculate the actual loan amount i.e. calculate interest rate/ E.M.I/ processing fee along with other extra charges. Focus on principal and interest to reach repayment amount. Pre payment fees loan: The bank imposes extra charges for pre closure of the loan. In case of a loan turnover some percentage of outstanding balance is charged. If the bank allows and you can afford to pay more if not full, then pay off. This helps you lower your principle, which in turn will lower your amount of interest also. Clear all doubts: When you interact with the bank authorities it is always benefiting to clear even the smallest doubt. Don't hesitate because that doubt might create a problem in future. Ask questions related to interest rate, fee combination, fixed or floating interest rate, regarding paying off loan early, and most importantly the time period. See that your residential address does not fall in the area which is blacklisted by the banks, the courses and colleges chosen by you should be affiliated with the government educational agencies. And once the loan amount is granted to you, stay in constant touch with the bank, keep a record of the amount paid the kind of interest rate you opted for and keep yourself updated on the ongoing market trends.