Study loan : How to get the right education loan

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Study loan
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How to get the right education loan
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• Whether it is for buying a house or a car or
  pursuing higher studies, loans are common today.
• With college fees increasing every year, many
  have no option but to opt for education loans.
• For undergraduate engineering courses, the fees
  could be Rs 5-10 lakh, while for a five-year
  medical course at a private college, this could
  go up to Rs 50 lakh.
• For post-graduate courses such as those on
  management, fees could be more than Rs 10 lakh.

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• HDFC Ltd company, says, "We have been noticing a
  surge in the number of students going abroad for
  undergraduate studies.
• Many students have started opting for the US for
  undergraduate studies," he says.
• Banks offer loans of up to Rs 10 lakh for courses
  in Indian colleges and up to Rs 20 lakh for
  studies abroad, according to Indian Banks'
  Association norms.
• But for post-graduate courses in premier
  management colleges in India, such as the Indian
  Institutes of Management, banks offer loans of up
  to Rs 20 lakh.
• While the size of a loan depends on the course
  and the college, the ticket-size of student loans
  in India ranges between Rs 2 lakh and Rs 22 lakh,
  the average ticket size being about Rs 5 lakh,
  says Bohora.

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• These loans cover fees for tuition, examination,
  library, laboratory and hostel money for
  purchasing books, equipment, instruments and
  uniform travel expenses for studies abroad
  caution deposit or refundable deposit, etc.
• In some cases, there are limits on some of these
  items. The loan also pays for expenses on study
  tours and project work.

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• Conditions for sanctioning a loan
• While sanctioning a loan, a lender will check if
  a student has actually secured admission to a
  course, the quality of the college and the course
  (whether it is recognised by the University
  Grants Commission orhe All India Council for
  Technical Education), if the student has the
  ability to secure an appropriate job after the
  course and the credit history of the co-applicant
  or guarantor.
• In case the loan is backed by collateral such as
  property (in case of high-ticket loans), lenders
  also consider the value of the property.
• Under education loans, fees for tuition,
  examinations, library, etc, are paid directly to
  colleges.

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• Usually, it is the first loan a student avails of
  and, therefore, by repaying on time, students can
  build good credit histories this will be of
  immense help when they seek to avail of
  automobile loans, home loans, credit cards, etc.
• "With timely Study loan repayment histories,
  students have been building great credit scores
  for themselves.
• In many cases, they get pre-approved loans for
  other requirements, based on impressive credit
  scores," Bohora adds.
• Source http//bit.ly/1MraBKv

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