Education loans are the best helping hand for education finances
Every person wishes that their child should be a doctor, engineer, lawyer or attain success heights in management studies. But in the era of rising inflation costs, high tuition fee and other expenses related to studies, it has become a big tussle for common man to let their child pursue higher studies at ease. Although, there are some government scholarships or private aids but those are not sufficient to let fulfill the dreams of every aspiring student of the nation. But shortage of fund should not be a barrier to education. Pursuing quality education can transform the whole course of an individual’s life, paving the way to a life of achievement and successes.
Therefore, government and private finance firms have introduced education loans that will cater to every segment of the student who can now chase their dreams in life at ease. An education loan aims to provide the much needed financial support to deserving students for pursuing higher professional or technical education in India & abroad. It is provided to those students who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level. They are created to assist student who want to enroll with higher studies in best of the universities across India or abroad but are often restricted with no financial backups or other problems like getting a visa clearance, fund approvals, slow loan processing, incomplete finances etc. in case of foreign studies abroad.
Like personal loan programs, student loans also come with certain rate of interest with individual credit background. While government banks demand for margin money of around 15-20% of the loan amount to approve study loan, some private finance firm give 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 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.
Education loans take a complete care of your expenses incurred towards the tuition and other fees, library charges, hostel and mess charges, cost of books and equipment, maintenance, caution fund/building fund/refundable deposit and cost of passage (for studies abroad), etc.
While taking student loan generally there is no collateral security for loans up to Rs. 4 lakhs. However, loans ranging from Rs. 4 lakhs to Rs. 7.50 lakhs, require collateral in the form of a satisfactory third party guarantee. And for loans above Rs. 7.50 lakhs, collateral security of appropriate value or co-obligation of parents or guardian would be required.
Disbursement of the 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 education loans 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.