It is often said, and rightfully so that
“An investment in knowledge pays the best interest.” The people of today’s
times have accepted this fact and are working hard to fulfill their thirst for
knowledge. This is mainly because of the fact that all of the major employment
opportunities are given out to the educated and skilled individuals. However,
the fees of the educational institutions have increased tremendously.
Therefore, the parents are unable to fund their children’s educational costs
even after exhausting almost all of their assets and savings. The increase in
the number of banks and NBFCs (non-banking financial companies) giving out
student loans have provided much-needed assistance to the parents. The educational loans in India are offered at much lower interest rates in
comparison to the education loans provided by the traditional financiers in the
earlier times.
Why choose study loans? The educational loans in India are the perfect choice for the students aspiring
to aim for higher education in order to succeed in life. The reason being,
there are numerous advantages that one can make use of by opting for these
loans.
6 interesting
facts regarding education loans are as follows:
· educational loans in India take care of
all the different expenses incurred by the students ranging from educational
fees to the travel expenses. Even the tuition fees, accommodation fees, and other
miscellaneous expenses are taken care off by these loans. Thus, aspiring young
lads can now choose a career of their choice and apply for an educational
course without hesitation.
·
The students don’t have to rely
upon and splurge their parent’s savings as they can fund their own educational
costs. These loans are offered to meritorious students at special interest
rates. There are a number of financial institutions and NBFCs (non-banking
financial companies) which provide education loans to women at lower interest
rates; in the wake of promoting girl-child education.
·
The students can choose to
pursue a course in an Indian institute or study abroad without breaking a
sweat, as a lot of problems are taken care of by these institutions. Problems
such as a certificate of availability of funds, proof of funds, pre-admission
loan, fast-track loans, score-based benefits, bridge loans, pre-visa
disbursement loan are a few of them.
·
The students can now procure a
larger amount of loan by applying for the co-borrower facility given out by
various banks and NBFCs (non-banking financial companies). These co-borrowers
could be the student’s parents or relatives. However, these earning
co-borrowers will be the primary debtors and they should have a bank account in
any Indian bank with a cheque writing facility.
·
The collateral required in
order to procure an educational loans in
India could be an apartment, property,
non-agricultural land, fixed deposits, any life insurance policy; whose
surrender value is equivalent to the loan amount.
·
The education loan amount will
be disbursed in Indian rupees. The fees related to tuition and hostel will be
directly disbursed to the institute; in installments.
Therefore, the educational loan inIndia has opened new doors for the
meritorious students who want to pursue education but face financial distress.
