The rising cost of higher studies has made almost impossible for the parent to self-finance their children's studies. The escalating costs will only break the backbone of their finance as well as exhaust all their future savings. Viewing the potential of the segment, many leading banks and non-banking finance companies have introduced Education Loan In India to cater to the growing financial needs of aspirants.
The competition is really getting stiff with more and more private players willing to finance the dreams. This lead to some key difference between the application processes across different lenders. Let’s shed some light on how to choose and what you should expect from lenders while applying for Education Loan In India:
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With the rising competition that's getting stiff day-by-day and growing education costs, it has become imperative for many students to apply for study loans. A management study costs a bomb of around half a crore if you have planned to study in foreign university. Even in India the figure still goes around 25-30 lakhs. Therefore, education loan makes a perfect sense during financial concerns for higher studies. One of the greatest advantages of study loans is that your EMIs will start once you get a job or one year late from the date of course completion.
Other than this there are lots of benefits of availing student loan: Let's glimpse through some of them:
There are leading private finance companies and banks who have introduced customized Study Loan In India solutions that will not only prove lighter on your wallets as well as fully finance your educational dream. Visit any of the website wherein you know your loan eligibility, compare interest rates, look for lenders who offer loan on zero margin money, assess your repayment based on earning prospects in near future. An increasing number of Indian students are now aspiring to pursue higher studies at top-notch universities or premier institutes either in India or abroad. However, pursuing professional studies in engineering, doctorate or aviation, postgraduate degrees is no piece of cake due to the escalating cost of education. Parent’s save up for the education costs of their children, and meritorious students bank a scholarship, however, the creeping costs will just not help this amount to bridge up at any point of time. Borrowing from friends or relative is a matter of dignity and taking a personal loan or traditional finance will burn a big hole in your pockets. So, choosing a Student Loans In India would be one of the wisest decisions by parents as well as students. These loans can seem like a blessing in disguise for worthy students. Study loan is a kind of credit advanced to professional scholars and students being designed to help students pay for college tuition, books, laptops, hostel fees and other living expenses. They provide the money for tuition expenses upfront have lower interest rates as compared to a personal loan or traditional finance and can be paid back once the student starts working. Yes! You heard it right. The best part of these loans is the paying back process starts after 6 months when a student gets his or her first job or after 1-year completion of degree depending on which date comes first. This is termed as moratorium period.
Till a few years back getting education from the quality institutions was not affordable to some deserving meritorious students because of the economic restriction. They had no other option than entering into the job market at an early age which meant untimely ending of budding talents and the consequent forced turns mediocre. But presently the scene has changed, the boom and rising in the banking industry has resulted in the release of big amounts of funds for the purpose of education.
The banks and the non-banking institutions are given loans for the purpose of education. There are two types of loans which are given study abroad loan in india and study loan to study in India. After students complete their school, funding for higher studies is a big dilemma faced by parents. The costs of higher education are now getting sky high with inflation costs only fueling up the costs. While borrowing from friends/family members is against your will, traditional finance is way too costly with extremely high rate of interest, stringent payments measure and very less time for repayment. Thanks to the leading private finance companies and banks that have introduced higher education loan to finance the needy students. These student loans have come in as much-needed financial succor to help talented and meritorious students realize their dreams of studying in top-notch institutes/university in India or abroad. The most alluring feature of education loan is that they can be repaid after the course completion. Your loan generally cover all expenses incurred towards tuition and other fees, library charges, hostel and mess charges, costs of books and equipment, maintenance, caution fund/building fund/refundable deposit and cost of passage (for studies abroad), etc. Myriad job options, illustrious future and heavy pay-packet lie ahead. If one has the capability and cleared the admission test, don’t let the financial issues become a thorn in the path. MBA degree has become the need of the hour. One nolonger has to depend on the savings’ of their parents or ask for the favors from their relatives or friends to pay the mammoth amount for the course expenditure. The Education Loan For Mba from the banking and non-banking organizations gives the eligible candidates self-satisfaction of independence and provides a hassle free, financially secured completion of the course.
It is suggested that the decision of taking the loan should be planned well in advance to have the disbursement of the amount in time. There has been a sharp rise in the number of defaults along with an increase in lending, over years. The default spoils the credit score of both the student and their parents (usually the co-borrower). If Equated Monthly Installments or, EMIs are overdue for 90 days, the bank classifies loan as a non-performing asset. The collateral will be at risk also. It is advisable to start repaying the loan as early as possible. As there is a hike in the tuition fees at many schools around the world, the parents have been facing financial difficulties to fulfill their children dream of pursuing higher studies. Most of the time the choices are made without expert guidance that can hamper the family’s financial future. As they might face problems while the repayment of the loan which will lead to the burdening of the study loans. According to a survey the number of students who have been applying for the educational loan for abroad studies has increased considerably since the last two decades. The education loans that are given to the students who aim at higher education particularly focus on the needs of the education and the related expenses. Hence, it is always better to take an education loan because there are available at affordable interest rate which can be as low as 12.75 %. Also processing fees and the admin charges over these loans are mere 1-2% of the loan amount. Educational loans for abroad studies are given by the various banking and non-banking institutions. They require long term commitment of around 10 -12 years. Hence, you take a student loan you should be well read about the term and the conditions of the lending institutions. Always you should plan your repayment strategy to avoid the burden of the loan. Here are the ways one can plan the repayment strategies to complete his/her course peacefully without feeling burdened about the loan he has taken.
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