Everything you need to know about Rate of Interest

• Floating interest rate can increase or decrease during the loan term.
• Influenced by changes in financial market conditions.
• No fixed EMIs.
• Hard to plan your payments as they are susceptible to vary.

• Remain constant during the loan term.
• Not influenced by changes in financial market conditions.
• Fixed EMIs.
• Assist you in planning your payments in advance.

The applicant profile includes elements such as previous academic performance if the student has previously worked, the past income and credit score are also taken into account.

A co-applicant/co-borrower guarantees loan repayment if the main applicant defaults on the loan. So, the co-applicants credit score and income play a crucial part in determining risk categorization and, thus, the study loan interest rate given

Secured loans are a low-risk loan type because the applicant will be pledging collateral. The education loan interest rate in India for secured loan is lower because the applicant is providing the bank with a guarantee to back up his credit. Unsecured loans do not require security, thus, the interest rates charged for this type of loan are always on the higher side.

The prevailing market conditions, including the overall economic environment and interest rate trends, can also impact the student loan interest rates.