A major hindrance in study abroad decision is a hike in tuition fee every year. You can’t help but crib every year as Universities around the globe increase their tuition fees. No need to be de-motivated! Why stop now when there are ways to overcome these hindrances and pursue your study abroad dreams? All you need to remember is that this is a lifetime investment and you should make the most of out of it!
Now, if you have nailed a scholarship so don’t just dismiss the idea of applying for an educational loan.Althoughyour hard-earned scholarship will help you a lot but it will not cover the entire cost of your education abroad which includes your living expenses.
We all feel that same about loans and give them a name ofcomplicated monsters, but actually they are nothing to be scared of.
The education loan will basically cover your tuition fees, room and board fees,stationary supplies fees, transportation fees, medical &health insurance fees, and also your living expenses. The bank will directly credit it into the University’s account at the start of each semester as instructed.
Basics of the educational loan.
Once you receive the offer letter from your college, the first thing you should do is apply for an educational loan. You must research a lot while you are waiting for your offer letter anxiously.It’s always good to make use of this in-between time period effectively.
Interest to Compare!
When you will start your research on loans from various banks, you will notice that they offer loans at different rates of interest. Take your time and compare the different kind of loans that are offered by banks and thoroughly check rate of interest. Private banks have higher interest rates in comparison to governmentbanks. Like you have applied to different universities similarly apply for loan to multiple banks, in case if your loan application get rejected by one you have a back up available.
For more details, approach the bank directly and meet relationship manager or visit their website online. The current interest rates fall on an average between 11% to 14%thoughthe majority of these are offered on a floating rate basis. This means that you should be prepared to face increased or decrease rates anytime.
Check your Eligibility?
The primary thing you should check as you start to make a list of banks is their eligibility criteria. Most of the banks offer educational loans for long-term programs and that too by reputed institutions which have certifications. Short-term courses are generally not covered. Still confused? Also students who are planning to study vocational courses then banks don’t provide educational loans facility. So be well informed, it really helps to know even the minutest of details here.
Who will be your Co-Signer!
Normally, when your education loan exceeds limit ofRs. 5 lakhs, you will be required to have a guarantor. A cosigner is an adult person who has to sign the loan documents with you as a proof. He agrees to pay your debt, in case you fail to do so. This is a very big commitment from someone and should not be taken lightly.
Must-Know Loan Facts:
- 15% of the loan amount is charged by bank in name of margin money for student loans exceeding Rs 4 lakhs.
- For student loans ofRs 7.5 lakhs or above, bank requires an LIC policy or a few documents of immovable property in your father’s name.
- Exchange rate also effects the disbursed amount so be prepared for a slightly lower loan amount.
- Your loan will have a holiday period, only after which you will be required to pay your EMIs. This period varies from bank to bank and could last up to the duration of the course or till you find a job.
- Completing your KYC is an important part of the loan disbursal process.
Be Ready with Docs!
Get in contact with your relationship manager in the bank and get a checklist from them in advance. Now as per this checklist keep allpapers and documents ready and be prepared for application. Nowadays many universities have tie up with banks for educational loans as well.
Know All the Clauses!
We request you to take out time and go through the loan agreement before you sign it. Be alert and Keep your eyes open and check for hidden clauses, structure and pre-payment details. in case of doubt better get in touch with the bank advisor.
While approaching a bank for a loan, these are just a few facts you should be aware of. We hope you have a clear picture of how to apply for a loan. Do you? Share your comments and views with us!
List of Important Documents:
Run a check to see if you have these. You will be needing some of these listed below.
| S No. | Name of Doc | Type of Doc |
| 1 | Driving license | Identity Proof |
| 2 | Passport | Identity Proof |
| 3 | Pan card | Identity Proof |
| 4 | Voter’s identity card | Identity Proof |
| 5 | A signed verification letter from a recognized public authority | Identity Proof |
| 6 | Aadhar card | Identity Proof |
| 7 | Passport | Address Proof |
| 8 | Bank account statement | Address Proof |
| 9 | Ration card | Address Proof |
| 10 | Aadhar card | Address Proof |
| 11 | Voter’s ID card | Address Proof |
| 12 | Telephone bill/ water bill/ electricity bill | Address Proof |
| 13 | Allotment letter issued by a government department | Address Proof |
| 14 | The banker’s signature verification | Signature Proof |
| 15 | Driving license | Signature Proof |
| 16 | PAN card | Signature Proof |
| 17 | Passport copy | Signature Proof |
For More Information:-Teachwell institute
Mob no-:9015557890
website:-www.teachwell.co.in
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