Understanding study loan scheme for higher studies

Education is very important for the overall development of individual in the society. With proper education he or she can attain good position in different verticals such as industry, telecom, doctorate, lawyer, engineering, MBA, politics, business etc. Every parent always wanted to give their children quality education. Understanding the increasing educational expenses, they keep saving for their child’s future education. Although it may be useful for one child family, it might prove insufficient if there are two or more children in family. Also, because of the growing inflation, rising education amenities, competitive lifestyle your basic savings will always be insufficient to bridge the gap of education finance.
Therefore, taking a study loan would be the most appropriate step towards achieving the zeniths of life. Government has taken concrete steps for providing better education facilities to the youth of our nation. In order to make sure that no student is denied of pursuing higher education, various banks and private finance firms in India have come up with state-of-the-art facilities for educational loan scheme. Parents have been exploring the study loan tool to make sure their children get the best and their financial status does not bring any hindrance to their goals.
The article discusses some of the finer points that one needs to consider before applying for the same. Education loans are available to any Indian citizen between the age group of 16 to 35 years of age and willing to pursue higher studies. They loans are usually approved for pupils who have either secured an admission in any designated college or educational institute approved by the bank.
Incase, of studies abroad it is important that you show sufficient proof of funds to take admission in foreign university or college. At times, parent might also plan to call off their children dreams to pursue foreign studies. Private firms are very well understanding the dire needs of student and have come up with unique and friendly solution for customers such as Pre-Visa Disbursement Loan, Pre-Admission Loan, Certificate of Availability of Funds, GRE score based loan, Bridge loan, fast track loan etc. which cater exclusively to students’ particular requirements and set them free from any form of obstacle in their road for career development.
Let’s understand some factors to consider before availing Study Loan:
Rate of Interest: Study loans are available under both fixed rate of interest and floating rate of interest. Fixed rate loans come with a slightly higher rate of interest compared to floating rate loans, but offer the advantage of fixed EMIs. People opting for a floating interest rate pay different EMI amount as per the interest rate due to market fluctuations.
Waiver Period:Study loan repayment doesn’t start from day one. Most banks or private finance firms have a six month waiver period for those getting a job or one year who is in the process of searching for job after higher studies, which is known as a moratorium period.
Margin Money: Some banks demand for margin money of around 5-15% of the loan amount to approve education loan for amount above 7.5 lakhs, but leading private finance firms give loan at no margin money costs. The interest rates offered are as low as 12.75% and the processing fee is mere 1-2% of the loan amount being calculated on a case-to-case basis. They design study loans without setting any cap on finance and provide 100% coverage of education costs, making such young talents of India free from unnecessary burdens and setting them freely to fly high in the success skies.
Prepayment:Mostly banks or private finance firms do not charge any prepayment penalty in case the borrower wants to prepay the entire loan amount and close the loan. But it’s better to verify with your bank or private finance firm as they may charge a nominal prepayment penalty if incorporated in their terms and conditions of the study loan.
Source:(https://tackk.com/understanding-study-loan-scheme-for-higher-studies)