When it comes to building a bright and prosperous future, nothing can replace quality education. However, there is a rise in the cost of education in India and abroad. That has propelled parents to opt for education loan. These loans are given to meritorious students so that nothing hampers their educational progress and they receive the best of education from institutes in India and abroad.
At the moment, almost every bank and NBFC offer the educational loans. It covers a wide range of curriculum from graduate, postgraduate, professional and doctoral degrees. An education loan in India covers not just the fees but also other aspects such as tuition fees, examination fees, associated expenses such as uniform, lab equipment, travelling expenses and laptop.
Some of the basic facts that people should be aware with regards to an education loan for Indian student are:
1) An education loan can be obtained by anyone who wants to study graduation, post-graduation, professional or degree courses
2) The loan cannot be given to the student alone, one of the parents should be a co-signor
3) Female students are offered lower interest rate or discount on education loan
4) The annual family income and the course pursued by the student are the primary determinants for education loan
5) Education loans worth INR 4 lakh do not require a guarantor
6) Education loan amount that is above INR 7.5 lakh does not need a collateral/security
7) The amount cap for students studying in India is INR 10-15 lakh and INR 20 lakh for students studying abroad
8) The education loan repayment tenure is between 5 to 7 years
How can you smartly repay an education loan in India?
Generally, you begin repaying education loans after they are disbursed. Some of the easy and smart ways to repay the education loan are:
1) Interest amount repayment: You can start paying interest amount while studying. The interest rate is simple and does not burden you. Gradually, the bank will apply 1 per cent interest subsidy.
2) Tenure extension: Although the loan tenure is between 5 to 7 years, you can get it extended if you are facing a financial crunch. Consequently, your tenure will increase to 10-15 years and the EMI reduces. However, you will have to assure the bank that you will receive a secured job and will be capable of paying the loan off after the completion of your course.
3) Moratorium period extension: An education loan for Indian student goes easy as you can extend the moratorium period (waiting period) to additional six months from 1 year. You will have to convince the bank that you do not have a proper job in place presently. This will better your credit history.
4) Top-up loan: If you wish to study further, you can go for a top-up loan. This will delay your repayment. However, be prepared to pay a hefty interest amount later.
5) Help from employer: While hiring you in the organisation, some company’s pay off a lump sum amount of your student loan. They, nevertheless, come with their disadvantages such as lower salary and other employment terms.
An education loan in India requires you to keep your bank informed about any financial constraints you face. If you do not do so, your credit score will take a backseat.
At the moment, almost every bank and NBFC offer the educational loans. It covers a wide range of curriculum from graduate, postgraduate, professional and doctoral degrees. An education loan in India covers not just the fees but also other aspects such as tuition fees, examination fees, associated expenses such as uniform, lab equipment, travelling expenses and laptop.
Some of the basic facts that people should be aware with regards to an education loan for Indian student are:
1) An education loan can be obtained by anyone who wants to study graduation, post-graduation, professional or degree courses
2) The loan cannot be given to the student alone, one of the parents should be a co-signor
3) Female students are offered lower interest rate or discount on education loan
4) The annual family income and the course pursued by the student are the primary determinants for education loan
5) Education loans worth INR 4 lakh do not require a guarantor
6) Education loan amount that is above INR 7.5 lakh does not need a collateral/security
7) The amount cap for students studying in India is INR 10-15 lakh and INR 20 lakh for students studying abroad
8) The education loan repayment tenure is between 5 to 7 years
How can you smartly repay an education loan in India?
Generally, you begin repaying education loans after they are disbursed. Some of the easy and smart ways to repay the education loan are:
1) Interest amount repayment: You can start paying interest amount while studying. The interest rate is simple and does not burden you. Gradually, the bank will apply 1 per cent interest subsidy.
2) Tenure extension: Although the loan tenure is between 5 to 7 years, you can get it extended if you are facing a financial crunch. Consequently, your tenure will increase to 10-15 years and the EMI reduces. However, you will have to assure the bank that you will receive a secured job and will be capable of paying the loan off after the completion of your course.
3) Moratorium period extension: An education loan for Indian student goes easy as you can extend the moratorium period (waiting period) to additional six months from 1 year. You will have to convince the bank that you do not have a proper job in place presently. This will better your credit history.
4) Top-up loan: If you wish to study further, you can go for a top-up loan. This will delay your repayment. However, be prepared to pay a hefty interest amount later.
5) Help from employer: While hiring you in the organisation, some company’s pay off a lump sum amount of your student loan. They, nevertheless, come with their disadvantages such as lower salary and other employment terms.
An education loan in India requires you to keep your bank informed about any financial constraints you face. If you do not do so, your credit score will take a backseat.
No comments:
Post a Comment