4. Minimum Fees And Other Costs

While filling the education loan form you will come through certain fees costs for instance processing fees, administrative fees and others. Processing fee consist of certain costs such as title Search fees, document preparation fees, fees for lawyers, underwriting costs, cost of employment verification and more.

5. Check For Collateral, Guarantee Or Security

Collateral security is the security that a bank requires from the student after granting loan. If the amount of loan is up to 4 lakhs then there is no need of collateral security. But, in case if the amount of loan is above 4 lakhs and  below 7.5 lakhs then security must be provided to bank in the form of satisfactory third party guarantee. Different banks have different rates. Investigate thoroughly about security features before the bank grant you loan.

6. Down Payment

Banks always expect you to pay a certain amount of cash as a down payment before disbursing the loan. Down payment is nothing but a certain amount of cash given by the borrower to the bank so that the borrower takes the responsibility of repaying the loan. This amount of down payment may vary from one bank to another. Your down payment value ranges from 5 percent to 25 percent. Some of the banks ask for very high down payment which makes loan unaffordable.

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