Borrowing money to pay for your education is an important decision and you must always consider how quickly you can pay it off. Even though interest rates for student loans are not as high, it can still add up quickly if you’re not careful with timely payments and this can land you in debt and spoil your credit record. 

If you planning to get an education, avoid these 5 mistakes at all costs:

1. Borrowing more than you require: Banks and other lenders offer education loans as high as 40 lakhs but just because you can borrow this much money, it does mean that you should. Calculate exactly how much money you need to borrow and get a loan according to that. You must understand that if you borrow more you will have to repay it with interest which is not something you want. If your course costs you 15 lakh, you must calculate boarding and other living expenses and decide your loan amount.

2. Not looking thoroughly: There are several banks, NBFCs and P2P lending platforms which offer education loans and the interest rates on such loans vary from lender to lender. If you fail to do your research properly, you might miss out on getting a loan at a lower interest rate. So, shop around for the lowest interest and do not just settle for the first available option. Compare interest rate and other charges to make sure that you end up with least repayment amount.

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