With ever escalating fee structures and weaning Indian rupee, education loan comes as a sheer blessing for those who aspire to study abroad. A typical education loan covers all kinds of expenses related to your studies and all you have to worry about is your learning experience in the foreign land. The banks and financial institutions take care of everything related to sourcing of funds.
Education loans are simple, faster and convenient!
You can easily draw up to 20 to 40 lakhs for graduation, post-graduation or professional diploma courses offered by recognised universities and institutes. After all there are more expenses, other than tuition fees, that are covered by education loan for abroad. Generally your student loan would support everything you would require to survive in a foreign land:
· Tuition fees- college and exam fees
· Cost of books, equipment and supplies
· Hostel, abode or room fees
· Transportation fees
· Health insurance fees
· Living expenses
· Refundable fees
The amount is disbursed by bank on the respective account. So you just need not bother about handling of funds, whatsoever.
Anyone who is Indian and 18 years of age can fill application for education loan with a co-signor. Your parents, guardians, and relatives can become co-signor. If you are meritorious and have grabbed scholarship, you can still back yourself up with education loan for expenses, other than tuition fees.
There are plenty of options to choose from. Most banks and financial institutions offer these loans on a priority basis. In fact education loans are facilitated by RBI and flexible terms are offered for students. Few choices are discussed below:
Pre-Visa Disbursement Loan: When you have a confirmed admission and you need a proof of funds for your visa interview, you can apply for pre visa disbursement loan. Under this loan, the amount will be transferred to your bank account and you can show it as a proof of funds to the university.
Bridge Loan: This loan would cover all education expenses starting from examination preparation to studying and living abroad. It will cover your exam prep classes fees (GRE/GMAT/SAT ), entrance exam fees, from cost of applying to actual course fees, to living abroad expenses.
Score-Based Loan: Meritorious students, based on their GRE/GMAT/SAT scores can get even more flexible and attractive loan terms.
Pre-Admission Loan: This loan is sanctioned before your admission. As the loan serves as a proof of funds your admission is confirmed with this education loan.
Fast-Track Loan is an express loan and speeds up all the processing as per your requirement.
Many banks offer top up loan to aid the current education loan in between the term. So there is too much of flexibility offered by banks to support your future. With so many choices, it is very convenient for parents as well as students to apply for education loan and plan for future. In fact student loans are no longer restricted to middle class today.
More benefits can be listed as:
1. You can easily avail up to 100% finance for your loan application, especially to study in the foreign country.
2. Most banks and financial institutions have tie ups with top universities and institutions. Thus, they offer very attractive interest rates, easy repayment options, and EMI offers.
3. There are least formalities to get a student loan. Plus, these loans are approved on a priority basis.
4. With a credit worthy co-signor you can get flexible loan terms. You could ask for loan duration and payment terms as per your choice.
5. You get major tax benefit under Sec 80-E of Income Tax Act, 1961 when you take loan from a recognized financial institution. Be it a graduation or a PG course, loan is provided for full-time course. In fact you/your parent can enjoy deduction for consecutive eight years.
6. You do not have to bother about repayment while you study as EMIs are to be paid after 6 to 8 months (depending on your loan terms) of completion of the course.
7. As you pay your loan successfully, you add first feature in your financial cap. You build positive credit history and improve Cibil score.
8. Besides, you get opportunity to share responsibility with your parents for your education. You indeed save your family fortune. You can plan the repayment and do not depend on your family savings.
All in all, education loans serve as are true guardians for you in the foreign land.