Shop around. Don't just sign up for the first loan you find. Talk to at least three banks to see what options are available and what suits you best. Make sure you know exactly how much you will need to finance your education. Next, check whether the loans you are looking at cover full tuition waivers, partial tuition waivers or just a fixed sum. Some bank loans even cover your living expenses, books, etc, but this varies from bank to bank so make sure you know what you are applying or signing for. Don't borrow more than what is really necessary or you will over burden yourself in the long run.
Check on the type of collateral required by the bank. Some require fixed deposits as collateral while others require property or stocks. Remember, taking a bank loan is not a short-term engagement as the loan has to be repaid upon graduation and in some cases, where property is used as collateral and repayment is not prompt, you may forfeit the property.
Make sure you are aware of the terms and conditions of the loan you are taking – on the disbursement of the funds as well as repayment package. Some banks will give you a repayment period of 10 years and others up to 12 years or 15 years. Check also if you have to service the interest of the loan while you are studying or if you only need to start repayment upon graduation.
Ask these questions: Is there an age limit on borrowers or co-borrowers as well as guarantors? Must they be your immediate family members? What if you are an orphan?
It is also important to check the interest rate of the loan you are considering. Often the interest rate is dependent on the mode of repayment. For instance, if the borrower starts repaying the loan (the principal or interest) from the moment it is released, less interest is likely to be paid.
Most banks charge an administration fee (usually a few hundred ringgit) either upon application or when the loan is approved. Check how much this is and when the payment is required. Though the fee is not that much, you should prepare yourself for this additional expenditure.
Find out how long it takes to get your loan. It is important to check this out as most education institutions require payment of fees when the semester begins. If the loan you are applying for takes a long time to process, you may want to consider another option or find temporary funding to tide you over.
Make sure you know exactly how much you will need to finance your education. Next, check whether the loans you are looking at cover full tuition waivers, partial tuition waivers or just a fixed sum. Some bank loans even cover your living expenses, books, etc, but this varies from bank to bank so make sure you know what you are applying or signing for. Don't borrow more than what is really necessary or you will over burden yourself in the long run.
Check on the type of collateral required by the bank. Some require fixed deposits as collateral while others require property or stocks. Remember, taking a bank loan is not a short-term engagement as the loan has to be repaid upon graduation and in some cases, where property is used as collateral and repayment is not prompt, you may forfeit the property.
Make sure you are aware of the terms and conditions of the loan you are taking – on the disbursement of the funds as well as repayment package. Some banks will give you a repayment period of 10 years and others up to 12 years or 15 years. Check also if you have to service the interest of the loan while you are studying or if you only need to start repayment upon graduation.
Ask these questions: Is there an age limit on borrowers or co-borrowers as well as guarantors? Must they be your immediate family members? What if you are an orphan?
It is also important to check the interest rate of the loan you are considering. Often the interest rate is dependent on the mode of repayment. For instance, if the borrower starts repaying the loan (the principal or interest) from the moment it is released, less interest is likely to be paid.
Most banks charge an administration fee (usually a few hundred ringgit) either upon application or when the loan is approved. Check how much this is and when the payment is required. Though the fee is not that much, you should prepare yourself for this additional expenditure.
Find out how long it takes to get your loan. It is important to check this out as most education institutions require payment of fees when the semester begins. If the loan you are applying for takes a long time to process, you may want to consider another option or find temporary funding to tide you over.
