Education is one of the most
planned investments in India. Every parent wishes a bright future for their
child. In consideration to
liberalization in monetary policy, onset of education loans has facilitated
students to pursue higher studies in India or take up studies abroad. It helps
the deserving bright students to follow their choice of career without worrying
about funding. It has become a boon for both parents as well as students.
Nowadays, educational loan
facility is offered by all the banks as financial institutions in seeking
school and college admission. These financial institutions have scrutinized the
scope and needs of education sector and have accordingly, formed alliances with
recognized educational institutions to ease the burden of candidate. Moreover,
parents and students can easily get education loan as well as Student Loans In India
while they are applying for online school admission and online college admission. The question that arises in our mind is which
bank is giving the loan at cheaper interest rates?
Let’s
discuss the points to look at before applying for education loan for school or
university admission.
Rate
of Interest :
The foremost point of
consideration before choosing the bank is the offered rate of interest. It
depends on three things I.e. Loan amount, Tenure of loan, Educational
institution. The obvious option would be the bank with a cheaper rate.
Eligibility
Criterion:
Each Bank or Financial Institution
(FI) has fixed its eligibility criterion based on which the loan is granted to
the applicant student, for instance, student’s academic track record, Type of
institute I.e. whether it is approved by central or state government or any
foreign institution, viability of the borrower, nature of the course or the
repute of the institute etc.
Repayment
Method:
Every bank or FI has its own
repayment criterion i.e. some fix it up to 5-7 years or some start after the
completion of course or as the student get placed and start working.
Collateral/Margin/Third
Party Guarantee :
It is a must for all the banks provided the
loan amount is above Rs.4 Lakhs. One can choose a bank/FI depending on the kind
of security the applicant can give to the bank or FI.
Amount
of Loan: This is generally fixed for all the banks i.e. Rs.10-15Lakhs
for higher studies in India and Rs.20-25 lakhs for studies in abroad.
Source
:
http://www.blog.epravesh.com/how-to-get-education-loan-in-cheaper-rate-in-india/
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