Overseas education loan

1
Overseas education loan
2
Short of funds for higher education? Take
education loan
3

• The education loans can fund your higher
  education. The process is simple and if followed
  can offer you access to funds to pay your fees
  and other expenses. One must pay off his
  education loan to remain creditworthy.
• After students pass out from schools, funding
  their higher studies is both a momentous event
  and a dilemma faced by parents. The costs of
  higher professional education have gone through
  the roof. Education loans come in as much-needed
  financial succour to help talented and
  meritorious students realise their dreams of
  studying in reputed professional institutes.
• The most alluring feature of education loans is
  that they can be repaid after the completion of
  the particular educational course. This loan
  generally covers all expenses incurred towards
  the tuition and other fees, library charges,
  hostel and mess charges, cost of books and
  equipment, maintenance, caution fund/building
  fund/refundable deposit and cost of passage (for
  studies abroad), etc.
• Here is a lowdown on the entire education loan
  process.

4
How to apply

• Students applying for education loans can
  approach public sector (nationalised) banks and
  private sector banks that offer educational loans
  for professional studies in India and abroad.
• However, before approaching these banks, it is
  crucial to have sufficient prior knowledge about
  the various education loan schemes and their pros
  and cons. Also, all the possible expenses should
  be calculated, whether it is tuition fees or
  boarding and lodging expenses, before you avail
  an education loan. It will help you to arrive at
  the precise amount you need to take as loan.
• The second step is to finalise the financial
  institutions from which you should take the loan
  government banks, other government financial
  institutions or private sector banks and
  institutions. Government loans are highly
  subsidised and require the interest to be paid
  after completion of education in easy-to-pay
  instalments. But,some reputed financial
  institutions also offer loans at competitive
  interest rates. You should do a thorough research
  on all the terms and conditions regarding the
  moratorium and repayment periods, etc, when you
  apply for an educational loan.

5
Loan eligibility

• To be eligible for an education loan, you should
  be an Indian national and must have obtained
  admission to an approved professional or
  technical course at a leading educational
  institution in India or abroad through stipulated
  entrance tests or the due selection process. The
  lenders prefer students who have a consistently
  good academic record. The loan applicants should
  have an earning parent or guardian as a
  co-applicant to the loan. The exact amount of
  educational loan is subject to the individual
  repaying capacity of the parents or student.

6
The education loan process

• Once banks receive applications for an
  educational loan, they determine the period of
  the loan that normally does not exceed five years
  as well as the margin money that has to be paid
  by loan-seekers. Generally, for a loan above Rs 4
  lakh, you have to furnish the minimum down
  payment (payment from your own sources) of five
  per cent for studies in India and fifteen per
  cent for studies abroad. However, the requirement
  for the minimum down payment is dispensed with in
  case of loans below 4 lakh. The course for which
  the loan is being taken should justify the amount
  of loan. Mostly, lenders grant the maximum amount
  of Rs. 10 lakh for studies in India and Rs. 20
  lakh for overseas professional education.

7
Planning the loan repayment

• Generally, Overseas education loan have a
  repayment period ranging from five to seven years
  and the EMI starts from the first year after the
  course completion or six months after the loan
  applicant secures a job. But, in some cases, the
  repayment period starts within six months of
  course completion. In case a student finds it
  difficult to service the loan, it is advisable to
  request the lender to re-schedule the repayment
  period or seek for a moratorium period.
• If you secure a well-paid job on completion of
  the course, the repayment can be accelerated to
  repay your debts as early as possible. Thus, you
  can maintain your credibility and good track
  record, as well as save on your first earnings.
  Significantly, students can prepay educational
  loans without attracting any penalty.

8
Implications of moratorium period

• Students need not pay interest during the
  moratorium period. But, there is a cost. For
  instance, if you avail a loan amount of Rs 5 lakh
  with the moratorium period of three years and
  loan repayment period of seven years at an
  interest rate of 13 per cent per annum, a simple
  interest is calculated on the disbursed amount
  from the date of disbursement. A compounded
  interest payment starts from the first EMI date.

Source http//www.moneycontrol.com/master_your_m
oney/stocks_news_consumption.php?autono1335054
9
https//www.facebook.com/AvanseEducationLoan
https//www.linkedin.com/company/avanse-financial-
services
https//twitter.com/avanseeduloan
https//plus.google.com/AvanseFinancialServicesLt
dMumbai
https//www.youtube.com/channel/UCcsuUx1EH1C08XmX2
embpug
10

• Read more on overseas education loan
  http//www.avanse.com/studying-abroad/

Thank You..!!!