What Factors Are Considered When Determining The Interest Rate For An Education Loan

When determining the interest rate for an education loan, several factors come into play. These include the applicant's credit score, loan amount, repayment tenure, and the lender’s policies. The type of institution and course, whether domestic or international, may also influence the rate. Government schemes or subsidies may lower the interest rate, especially for economically disadvantaged students. Additionally, the applicant's financial background and co-signer’s credentials are considered. Market conditions and economic factors, such as inflation, also play a role in shaping education loan interest rates. Together, these factors determine the overall affordability of the loan for the student.Readmore