VFRESHERS

It is every student’s dream to study and plan their career so as to get ahead in life. Everyone has aspirations to get ahead in life and education is a sure shot way. There are constraints people have where money is concerned. Quality education comes at a price. Every student can avail of it as they can get loans from all the nationalized banks.

Scholarships could be had by only the top few and the others were left high and dry. This no longer is the case. Every bank worth its salt offers loans at extremely nominal interest rates to students. Even private banks are not far behind as they know what a lucrative market this is.

As a student, you have all the possible options open to you. Why would you put a stop to your dreams when you can avail a loan and fulfill them? Most of the loans are for students who have got admission into any professional or technical course. This could be either in India or abroad. The loan could also be for graduate and post graduate study. The amount of loan that you avail depends on the course, your financial position and the repayment option that you choose from. The majority of the loans fall into the bracket of 10 to 20 lacs.

The loan amount covers the expenses for college fees, hostel and boarding charges, exam fees and also miscellaneous fees such as library and laboratory fees charged by the university or the institution that you are going to join. The loan amount can also cover the travel expenses to another country and the amount for computers. The age of the student is important criteria while deciding the loan to be sanctioned as this will decide the paying back power too. The student must be between 18 and 35.

Students have to submit a margin amount to avail of the loan. This amount is 5% to 15% for loans up to 4 lacs and can be repaid within 4 to 5 years. For a loan for more than 4 lacs than you have to provide someone who is willing to stand as a third party guarantor. For loans more than 7.5 lacs the parents or guardians have to be collaterals to the loan.

The bank goes on to calculate the potential income of the student after completion of the course and then fixes the repayment installments. The student can start repaying the loan after six month of either completing the course or getting a job whichever happens earlier. The repayment is over a period of five to seven years.
Educational loans are offered up to 95% if you have got admission into certain cream institutions such as the ISB.

Hence, in today’s scenario students need not put a stop to their dreams because of their financial or family backgrounds. If you have the goal and determination, loans will help you in every way possible to make it happen for you.

Here are few Banks in India which offer Educational Loans.

• State Bank of India
• ICICI Bank
• HDFC Bank
• Axis Bank
• Punjab National Bank