Features of educational loans in India

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.