Education Loans For Abroad Studies

Introduction:

Do you have questions related to study abroad education loan in India ?

Are you wondering how to get the education loans without collectors? 

Hey, guys, today. We are going to talk about everything related to education loan in India, and education loan is an important part of the study abroad journey, and usually students tend to worry a lot about this part of their process. So our purpose of this video is to help you make an informed decision and reduce your stress and confusion so that you can easily plan your study journey. So without further delay, let's get started. 

Content:

Who provides an education loan in India. There are basically three institutions first banks, second nbfcs, which are the non banking financial companies like htsc critical advance, third foreign lenders like Lee finance. Who all are eligible foreign education loan. Different banks in India have their own eligibility criteria. Here are a few basic things that you have to check. 

First, you should be a citizen of India. Second, the age limit should be between 16 to 35. Some banks do not have any upper age limit. Third, a secured admission in a graduate or postgraduate or doctoral level program of study for a co applicant and a co actual security. Now who is a co applicant, a co applicant is someone who can act as a gardener. On behalf of you, this can be a parent, sibling, spouse. Parent and law, or a close relative. Banks will usually ask for income proof or information about your co applicants, financial stability and assets to approve your education loan. 

Now we can discuss about collateral and non collateral loans. Firstly, what is collateral collateral is basically a form of security that banks takes to give you alone, you have to attach this security along with your loan application. This collateral can be in the form of an F d life insurance or an immovable asset like house or something else. The two most prominent kinds of education loans are education loan with collateral, also known as secured loans and education loan without collateral. Most banks in India require collateral security to sanction a loan application over 7.5 last. Meanwhile, non collateral loans or unsecured loans do not require you to attach a security. But loans acquired without a collateral come with higher interest rates. The next big element you should know about is the interest rate. 

What is interest interest is basically the amount charged by the bank or lender for lending you money. It is calculated as a percentage of the principle, which in this case is the amount of loan you are taking. This interest amount is also commonly referred to as study loan emi. The interest rate varies depending upon the total amount of loan taken from bank to bank, ranging from 9 percent to 15 percent. For example, S B I offers a loan up to rupees 7 5 black on rate of interest. of 10.25 percent per annum and above rupees 7.5 lakh at an interest rate of 10.50 percent when you are taking an education loan interest rate is the most important deciding. Now the next big question is, what all does an education loan cover. Most education loans cover basic cost fees. Including admission or tuition fees, which is paid to the educational institute along with expenses such as accommodation, travel, library, et cetera. 

Some bank loans also provide money for the purchase of books, pieces of equipment, computer or laptops. One must always be super sure about the coverage of the education loan they are applying. So guys, till now, we discussed about collateral, non collateral and interest rate. Let's discuss about repayment now the loan repayment period in terms of education loan starts from 6 to 12 months after you have completed your course and secure the job, a lot of students ask if they will have to start paying back the loan immediately after their studies, the answer is no. You will get some time before you can start repaying your loan. This time is called the moratorium period, a time during a long term when you are not asked to pay any repayment, the moratorium period feature was introduced so that students can start repaying the loan only after they start earning. However, the moratorium period in many cases is not interest free.

 How much time does it take to repay the repayment period also varies from bank to bank in case of education loan for studying abroad, the repayment period is at times as long as 15 years, giving students enough time and scope to repay the bank in slow and smaller installments. Finally, after discussing all these information about education loan, the most important question here is whether taking an education loan a good option or not. As more and more people are opting for studying abroad, education loans are becoming popular. And banks are trying to attract applicants by offering different incentives. 

Applicants can also avail tax benefits under section ade of the income tax act or interest paid towards education loans. However, like any other loan and education loan turns risky when an individual is unable to pay, the loan turns in a bad loan, hence it is important for you to evaluate all aspects before applying for an education loan to study. 

In conclusion, It is very important that students analyze their job prospects in the country they are studying or the job market back home, 1 should be clear about their repayment ability and have a repayment plan in the place before their moratorium period begins. So that was all about education loan. Check out our playlist study abroad stories where we bring you real stories from students about their student life and career opportunities.