Get wings of finance to fly for achieving higher education dreams

Its’ been rigorous hard work for past couple of years and finally it has paid off to see yourself fix a spot in merit list. You’re on the ninth cloud and your parents feel proud of you as well. But what next? Are you going to put a brake on your studies after getting into the merit spot? Definitely not! Infact, the real race of building a sound and effective career that will lead to your future growth kick starts NOW.

Once students pass out from schools, while it’s surely momentous for the time being, funding their higher studies is the real concern that parents face thereafter. Today, the costs of higher professional education have touched the roof and it’s only going to shoot up in future as if sky is the limit for education costs. Many middle and upper middle section people of the society often stay tensed and worried on arranging the requisite finance for their children for higher education aspirations.

In such scenarios, education loans come as a guiding star in the darkness of much needed financial support to help talented and meritorious students to turn their dreams of studying in reputed professional institutes into reality.

How to apply for study loan for higher studies?

Today, markets are flooded with public and private sector finance firms who offer loans at most economic al rate of interests that range between 11% and 14%. Some private finance firms offer loans at no marginal money costs thereby offering 100% finance for your higher studies. The most alluring part of education loans is that they can be repaid after the completion of your higher study course.
A study loan takes a complete care of your 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.

It is advisable that you have sufficient prior knowledge about the various education loan schemes and their pros and cons available in the market. Also, it will be good to calculate all the expenses such as tuition fees, books, boarding and lodging expenses, before you avail an education loan. Once decided you can approach the relevant finance firm. You need to work on four point module which starts from actually taking a loan to the repayment solution.

Loan eligibility

For taking a study loan, you should be an Indian national and must have obtained admission in an approved professional or technical course at a leading educational institution in India or abroad through the entrance tests or the due selection process. The loan applicants should have an earning parent or guardian as a co-signer to the loan in form of guarantor agreeing to pay your debt, incase you fail to do so.

The process

Once the bank/company receives applications for a study loan, they determine the period of the loan. For 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 15 per cent for studies abroad. However, there are many finance firms who offer education loan at no marginal money requirements. Besides, taking education at the utmost priority level these financial firms do offer fast track loans for higher studies which act as a speedy approval of your admission process at the time of application. It is advisable do a good research and figure out such firms which take a complete care of your finances and worries for higher education before applying for the loan.

Planning the loan repayment

Once you take an education loan the next big concern that runs through your mind is repayment of loan amount. But relax! There are various finance companies who understand that education loan serves as the starting point for the student’s financial independence and therefore they believe in good credit practices. Generally, education loans 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. You have flexi repayment options such EMI payment course, Interest servicing during course & partial interest servicing during course. Look for these options and then decide the repayment as per your flexibility.

Moratorium period

In case your repayment starts within six months of course completion you can request the lender to re-schedule the repayment period or seek for a moratorium period. A moratorium period is a time during the loan term when the borrower is not required to make any repayment. It is a waiting period before which repayment by way of EMIs begins. Normally, the repayment begins after the loan is disbursed and the payments have to be made each month. Students need not pay interest during the moratorium period.
Difference between secured & unsecured study loan

Most study loans fall into the unsecured loan category, but in some cases, collateral security can be asked which is usually property owned by the guarantor (parent/caretaker), free from any other legal complications or liabilities. If a student fails to repay the loan, they need to pay it on their behalf or release the property.

While secure loans have lower and fixed interest rates, unsecured student loans from a bank or private lender usually have higher-than-average interest rates due to the risk component on providing a loan without any collateral. But, such loans provide a sizable amount of money to students in a relatively short span of time.

Education loans are of great help especially for underprivileged and talented students. Today, government has taken concrete steps for providing better education facilities to the youth of our nation. In order to make sure that no student is denied of pursuing higher education, various banks and private finance firms in India have come up with state-of-the-art facilities for educational loan scheme. So bank a suitable opportunity now and create own your world of successes by pursuing good and quality higher education in India or abroad.

Source : http://checkthis.com/studloan