The biggest challenge one always faces for is to arrange for funds. Cost of living and studying in a country like the USA can be exorbitant and everyone cannot afford it. However, the aspiration to study abroad and make it big in life always drive you to overcome these hurdles. Arranging funds is one of the most crucial parts of the whole exercise. Various banks have understood this scenario and resolved the complexity of financing the higher education by giving student loans to aspirants who wish to study abroad. In this post, we will inform you about various aspects one should consider while acquiring a student loan. We will also discuss what all documents are required, how much tuition fees and other expenses a student loan covers.
The application process for a majority of the starts in October. So, one should always start the procedure of loan evaluation, loan sanction and getting solvency letters which prove as ‘proof of funds’ to the universities before this period. Loan disbursement can be done after receiving the confirmation of admission and i20 from the university. The loan evaluation can be done before the admission is confirmed. As the whole process is time-consuming, one should always start early with each exercise in order to avoid the last minute rush. After submitting your applications to the institute, while waiting for the offer letter, do not take rest and sit back. This is the time to do thorough research on loans offered by various banks. Check out .
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快穿系统女主深吻hBefore applying for a student loan one should always have a clear idea about how much money they require and how much they are going to pay from their own pocket. Other important factors to consider before applying for the loan:
While giving a loan, banks also need to verify that you are a genuine student (customer) and you have secured admission in an established university, so, they can assess your capability of repaying the loan. Here’s a list of basic documents, which are usually required by the banks to process an education loan.
NOTE: Requirement of documents can vary as per the banks’ own rules and regulations, so it is always advised to check the list of the documents required with the respective bank.
Expenses covered under the education loan
Always make sure to check apart from the tuition fee what other expenses are covered in your loan scheme. There are various other things which you need to take care. Now a days various loan schemes are available which cover different types of expenses other than the tuition fee. Some of the expenses covered under the loan are:
Things to Remember
Any property whether movable or an immovable, which can be offered to a bank as a security for a loan is collateral. Most Indian banks demand collateral as security in order to reduce the risk involved in paying off the credit.
Type of instruments accepted as collateral快穿系统女主深吻h: Any liquid asset preferably shares, bonds, FD or any immovable property like the house, any commercial property or land can be classified as collateral. One important point to keep in mind is that agricultural land is not accepted as collateral. Even mutual fund units, gold, life insurance policy, government securities, shares, bonds, bank deposits, debentures or bank deposits are also accepted as collateral.
Education loan without collateral
Education loan has come as a big relief to those who want to pursue quality education but face a big challenge while arranging the funds. Now students can avail a loan of up to INR 4 lacs without collateral. For loans, up to INR 7.5 lacs, parents or guardians are made joint borrower and third party guarantee is obtained. For loan exceeding INR 7.5 lacs property or any other asset is required as collateral. You can also contact India’s leading education loan providers through Shiksha Study Abroad.
How much can you borrow against a collateral?
Becoming a guarantor for a loan is a huge responsibility as the guarantor will have a legal obligation to pay in case the borrower defaults on his payment. If the loan amount exceeds INR 4 lacs, then the bank may ask for a guarantee by a third party. If the borrower is not able to repay the loan amount irrespective of the circumstances, in that case, the guarantor holds the liability to repay the complete amount to banks.
快穿系统女主深吻hThe first and foremost thing to consider is whether you are or not. The general eligibility criteria that are followed by all the banks are:
Repayment of the student loan is generally paid in equated monthly instalments (EMIs) for a period of 15 years for all categories of loans.
Many universities require the students to submit a certificate issued from their banks giving details of the sponsors’ financial capability. It is done in order to ensure that the sponsors are financially capable of meeting the expenses of the student going for studies. Banks issue this capability certificate after reviewing the financial and other supporting documents of the sponsors.
快穿系统女主深吻hSome of the loan schemes offered by Indian banks for studying abroad are:
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Apart from the nationalised banks, student loans can also be availed from non-banking financial companies/institutions (NBFCs). Non-banking institutions can offer complete tuition fees to the students. Borrowers need to provide collateral as security to the banks as the loan amount is generally more than INR 7.5 Lacs. Some of the NBFCs options are:
Also Check Some Popular universities to Study in USA:
This is one of the most important aspects to look after while taking the loan. We always suggest you go through the terms and conditions of the loan carefully and then move ahead with it. This is one factor we really stress upon, as you should always be clear with all the conditions mentioned in the loan agreement. If you have any doubt regarding anything then always consult the experts apart from the bank representative.
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