5 Tips to Get Lowest Interest Rate on Student Loan


Get Lowest Interest Rate on Student Loan


Paying a lower interest rate needs to be on your list of priorities if you want to cut the EMI payments on your college loan. Banks and NBFCs offer school loans with interest rates ranging from 9% to 14%, just like any other type of credit. Your student loan interest rate can be altered, unlike a fixed-rate mortgage.

The following advice can help you bargain for a lower interest rate on your student loan: -

Create a Profile:

The rate of interest will be influenced by your academic history, the college you attend (if you are applying for an MS), and the college you choose to study at. Maintain an attractive profile so that banks will be prepared to offer cheap interest rates on loans.

Do your Homework:

Before approaching the bank to negotiate a lower interest rate. Can you offer a guarantee? What is the income of your co-signer? How long will it take you to repay? Interest rates can be negotiated based on these considerations.

Additionally, compare the interest rates offered by different banks and NBFCs. If you can discover a bank or NBFC with a cheap interest rate, use it to your advantage when negotiating with their rivals. If your profile is strong enough, banks may be ready to drop their interest rates.

Calculate the expenses carefully:

Try to calculate your expenses as precisely as possible. The loan amount can make a difference in the rate of interest. Higher the income higher the interest rate.

Apply early:

Before obtaining a college acceptance, if your GRE score is strong, apply to banks. Early applicants have the advantage of being able to evaluate multiple banks and have more time to bargain for a loan with a low interest rate.

Transfer balance Loan:

Transferring your student loan balance from one bank to another is another alternative. You can save money if you are fortunate in obtaining a cheaper rate than the bank you would be switching from after refinancing.

For students, comparing banks and finding a lower interest rate can be a time-consuming and difficult procedure. Certain solution providers offer a single window platform that allows students to compare several banks and NBFCs online.



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