Are you worried for higher education funding?
The ever increasing cost of education in India creates a sense of urgency in minds of parents and students to build a requisite corpus for education finances. In this highly inflating economy the regular savings prove insufficient to bridge up the gap. Besides, traditional finances are always a costly affair and borrowing from friends and relatives is always a matter of self-esteem. Therefore, more and more people are opting education loan so that their children can purse higher studies in India or abroad with pride and at effective costs.
Education loans have come as an easy breather for students and parents who wish to achieve their goals in life and fly in success skies. The variable interest rates, opportunity to pay once you get a good job, flexible repayments options and tenure are some of the factors that make education loan favourable for students. Education Loans in India are provided by Banks, Government organizations and private financial institutions to help those students who are eligible to attain higher education in reputed professional institutes but can’t afford to pay the hefty college tuition, books and other expenses.
While taking an education loan the most important part is that first you have to determine how much loan you require to meet your education expenses. Some factors include your college fees, study materials, mess and accommodation. Incase you opt to study abroad it is important you have sufficient proof of funds to take admission in foreign institute or university. Therefore, many 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.
Once you get the quote on your loan amount opt for comparison on getting interest rates. Education loans are usually on floating rates where the interest rates may change or fixed rates. While government banks demand for margin money of around 15-20% of the loan amount to approve education loan, some private finance firms give student loan at no margin money costs. 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 education loans without setting any cap on finance and provide 100% coverage of education costs, making such young talents of India free from unnecessary burdens.
Disbursement of the education loan amount is done directly to the institute or college to which the student has applied for admission. In the case of mess and hostel charges, the relevant amounts are given to the concerned authorities. While applying for loan the banks or private finance firms verify the tenure of the course, and determine the cost of the entire course, as applicable at that point of time. Once you take the admission after that each year, the applicant is required to submit a form available from the bank or private finance firm that gives the details of the money required, and then the next installment is directly disbursed to the college/institute. If air fare is covered the amount is given directly to the airlines. Some banks or private finance firms do give the students themselves a certain amount on a monthly or quarterly basis for purchasing books, laptops and other related material associated with the course. However, it depends completely on firm or banks discretion.