Are you planning for education finance for higher studies?
Higher education is quite expensive nowadays. More and more people are finding it difficult to fund the cost and hence are opting for education loans. Many times students get admission in their dream college but don’t have sufficient financial resources to pursue studies, afford living expense, accommodation and other expenses related to studies. Traditional finances hit upon with huge interests rates and savings with regular source of income is insufficient to bridge up the financial needs. Therefore, opting for education loan would be a secured and right way of finance for higher studies. Before taking a loan it is important that you properly assess the various options available and take into account such factors as interest rates, eligible loan amount, repayment options and prepayment options available.
When you take a student’s loan the most important point that comes in your brain would be what will be the loan amount that you can take? In general, you can get upto Rs. 4 lakhs of educational loan without any collateral. Only the student and parents have to sign the document and no collateral are necessary. Under education loan scheme, you can get a maximum of Rs 15 lakhs for studies in India and Rs 25 lakhs for studies abroad. For loan amount between Rs. 4 lakhs and Rs 7.5 lakhs, you will have to provide third party guarantee to the bank. If the loan is above Rs. 7.5 lakhs, you will have to furnish the bank with collateral documents.
These caps are set in government banks or finance firms who demand for margin money of around 15-20% of the loan amount as well to approve study loan. But some leading private finance firms in India understand the importance of education finance and have come up with no margin money costs options. The interest rates offered are as low as 12.75% and the processing fee is mere 1-2% of the loan amount being calculated on a case-to-case basis. They design study loans without setting any cap on finance and provide 100% coverage of education costs, making such young talents of India free from unnecessary burdens and leaving them freely pursue their higher education and thereby carve the path of their successes in life.
In case students pursuing higher studies abroad it is important they show sufficient proof of availability of funds during Visa interview. It’s a kind of additional security for the confirmation of your visa incase of foreign studies. Many times parents and students sack their decisions to fulfill dreams abroad. Therefore, these private finance firms have come up with unique and friendly solution for customers such as Pre-Visa Disbursement Loan, Pre-Admission Loan, Certificate of Availability of Funds, GRE score based loan, Bridge loan, fast track loan etc. which cater exclusively to students’ particular requirements and set them free from any form of obstacle in their road for career development.
Any education loan is like a liability so it’s better to get rid of it as soon as possible. Of course, students and parents often stay worried for loan repayment and flexible ways to repay them. Banks or private finance understands your concern very well and have come up with flexible repayment options. You have flexi repayment options such EMI payment course, Interest servicing during course & partial interest servicing during course, EMI repayment post-Holiday/Moratorium period and Step Up repayment facility. Look for these options and then decide the repayment as per your flexibility. A student loan is the best helping hand that you get during your rainy days of searching finances for your studies, so it is advisable clear your debt associated on time. Also it improves your credibility score for securing other loans.