It goes without saying that you should choose an education loan only after comparing the market thoroughly. However, given that borrowing for education is something most students have ever done before, there’s always a chance they do not compare meticulously enough and end-up with poor student loans.

That’s why, if you are a young aspirant looking to take a study loan to fulfill your further education plans, this article will highlight 5 things you should compare when looking for a student loan to ensure you get the perfect financing option.

1. Nature of the funding on offer.

One of the first things you should compare is the nature and extent on funding on offer. 100% financing is a pre-requisite really, you shouldn’t settle for a lender that requires you to arrange a down payment or margin money.

That said, it all boils down to how much a lender is willing to help you. Some lenders offer to cover all education related expenses such as living expenses, the cost of books and laptops, the cost of airfare, etc. Some lenders will also provide proof of funds if needed during admission or when applying for a Visa. Some lenders will also provide a top-up loan if and when you need it.

2. The charges applicable on the education loan.

Charges are a very important aspect of a student loan that need a good deal of evaluation and consideration. Firstly, you need to understand that all student loans come with charges. However, the list of charges and their extent will vary from one lender to the next. You will have to endure some of these charges upfront, such as the processing fee and stump duty.

Out of the two, processing fees is something you need to look at carefully. Processing fees can be as high as 2% of the loan amount or it could even be waived-off by some lenders. The catch is that it is non-refundable, even if your loan application doesn’t go through.

You might face other charges once the repayment begins, they include prepayment charges, late payment fees, cheque or ECS swap charges,  cheque bounce charges, etc.

3. Reviews, ratings and reputation of the lender.

It’s important to see what other people are saying about lenders and their education loan offerings. From the surface, all lenders might seem like their all excited to help you but some will neglect you once you’ve signed with them. That’s why it’s very important to check what others have experienced with the lenders out there. Aggregator sites maintain ratings that are very helpful when selecting a lender.

4. Interest rates.

Most others would list this at top when talking about things that need to be compared when looking for education loans. However, though it is important to get a lower interest rate, it shouldn’t mean compromising on the any of the above.

Also, remember to look for every possible way to lower the rate. If you are a women borrower, you should ask for concessional interest rates. If you have a good academic record, then demand lowered rates. The same goes if you have a higher entrance exam score or if you are providing a strong asset as collateral.

Hope these points help you compare the market well and choose the perfect education loan for your needs and requirements. Good luck and all the best, study hard!