VFRESHERS

Is money your obstruction in scaling up the ladder of attainment? Or is money holding you back from realizing your dreams? Or better still, is it that you can’t conjure up for your studies on a vagary?

The solution is Education Loans. It comes with a deal of repayment. Simple.

Even simpler are the means to get one nowadays. Education being seen as a new thriving market, by banks, it’s becoming fashionable by the day.
The lack of funds to support the ever-hiking college fees has led to a storming growth in the number of applicants for such loans. Not only does it helps them accomplish their targets but, also frees them from the immediate money troubles; ensuring their sense of esteem.

These student loans cover partially or entirely the expenses borne by a student during the duration of a course. It subsumes both, tuition as well as boarding charges, books & gears required; exam, caution and other refundable deposits.

The areas where a bank prefers to invest are the popular sectors, as they ascertain payback. Fields like Engineering, Management, Medicine, Law, Computers and Electronics etc. are preferred over other lesser known diplomas and degree courses. Also, the accreditation from Government or esteemed universities is a primary criterion.

Before taking up the bank’s perspective in mind, let’s discuss the different types of loans being sanctioned to students in India.

There are broadly 3 categories:

• Federal Loans – funded by Govt. at nominal or no interest basis to academically brilliant student. These are easier to repay.

• Private Loans – by private bodies or educational institutes, offer larger chunk of money and equitably larger interest rates.

• Consolidation Loans – when a student fails to repay a loan, he/she can take up another loan to pay it back. These may be secured against a private possession of the applicant.

There is a myriad of banks which offer these student loans. Infact, each bank in India has this provision, taking in account the returns of this service here. For the same reason, the banks now offer competitive lower interest rates, flexibility in time to pay back and convenience in the form of consolidation. The speed and ease of services by a bank also influences a candidate’s preference.

The amount of money that is granted varies depending on the bank, individual’s capacity to return, course & institute opted, and previous academic track record, to evaluate the strength of the investment. The upper limit for studying in India is around 7.5 lakh, while for overseas studies; it goes up to 15 lakh. The students are required to pay this amount back once they start earning.

But don’t all good things in life come with a price tag? So does these loans. Though made painless these days, the process of getting over with a loan once taken, isn’t the nicest ordeal. However, the brighter side is that, an investment in Education is the best step taken. It ensures the growth of, both, the nation as well as the individual aspirations.