Importance of Student loan in India

1
Importance of Student Loan In India for
higher studies
2

• Student Loan In India is great financial
  support for students who wish to pursue higher
  studies. It helps students to pursue their dream
  of studying and achieving milestones in life.
  They are usually two type of study loans secured
  and unsecured i.e. one with collateral and one
  without collaterals. It's important to
  understand every aspect of study loan so that
  you don't fall in the pithole of exorbitant
  interest rates and higher monthly installments.
  You have to understand what is collateral, why is
  the need, the difference between the two before
  you make your informed decision.

3

• What is collateral in student loan?
• Its an immovable property such as your house,
  flat, land, or any other assets, shares, life
  insurance policies, fixed deposits, mutual
  funds, gold or jewelry, retirement fund which
  the borrower would offer to finance to secure
  the loan amount.
• Why you have to pledge for collateral?
• Usually, lenders believe in the ability of the
  students, however, this is only a theoretical
  thing. Just in case, the borrower is unable to
  repay the installments on time, the lenders would
  then have to have something against the value of
  the loan to recover its losses. Therefore, the
  borrower has to pledge for a collateral.

4

• You do not need to pledge for collateral to any
  government bank if you're availing a loan up to
  Rs 4 lakhs.
• According to RBI, lenders have a provision to
  provide student loan in india without collateral
  up to Rs 7.5 lakhs, however, if you wish to take
  loan more than 7.5 lakhs you can approach private
  bank and NBFCs who are willing to offer a loan up
  to Rs 50 lakhs without security. Also, if the
  amount is big they are willing to give 100
  education finance against the collaterals. They
  won't need an upper limit for the loan amount
  that you can avail of education loan without
  collaterals.
• Loan procedure for study loan without collateral
  is simple. There are few basic steps involved in
  it. Fill up the online application form, Submit
  the list of documents online, lenders will verify
  the documents and send it for processing.

5
Importance of student loan in India for higher
studies

• Processing officer will verify the application
  and sanction the loan amount. The loan will then
  get disbursed to the university or institute
  within a day or two.
• Other factors that lenders will check before
  approving the loan would be your academic score,
  parents/guardian's academic score, age,
  university or institute, country, job prospects,
  and the collaterals when the amount is beyond 7.5
  lakhs. Once the lenders evaluate these factors
  you will be eligible for a suitable loan amount.
• The interest rates can vary from lender to
  lender. However, since these loans are offered to
  students they wont lend the loan at a higher
  interest rate. It can range anywhere between
  11-13 with a mere processing fee of around 1-2
  on the loan amount. Lenders are willing to offer
  more reduced interest rates and higher loan limit
  if you have collateral to keep with good
  financial value.
• With or without collateral today, you have
  customized solutions for student loan in India
  through leading non-banking finance companies and
  banks. As per your need and your relationship
  with the lenders, and your power to negotiate
  with an exceptionally good academic score and
  credit score you can avail a study loan.
•  

6
To Read More on Student loan in India
Visit us
http//www.avanse.com/blog/
To Buy Student Loan in India Click Here