A study loan helps to achieve the Education Loan for Mba goals of a student by financing the expenses incurred for admission in a reputed college or universities in India. The loan typically covers your tuition fees, library charges, hostel and mess charges, the cost of books and equipment, maintenance, caution fund/building fund/refundable deposit, etc.
While government banks demand might demand margin money of around 15-20% of the loan amount to approve your loan, some leading private finance companies give educational loan at no margin money costs. Thus, you can avail 100% finance at fairly low-interest rates and easy EMI options. The interest rates offered are as low as 12.75% and the processing fee is mere 1-2% of the loan amount being calculated on a case-to-case basis. They design study loans without setting any cap on finance and provide 100% coverage of education costs, making such young talents of India free from unnecessary burdens.
Once you have the admission letter in your hand, you can apply for an educational loan. Depending on the loan amount and your requirements, the bank will charge a processing fee or ask or a collateral security.
For loan up to Rs 4 lakh, no collateral security is required. For those ranging from Rs. 4 lakh to Rs. 7.50 lakh, collateral in the form of a satisfactory third party guarantee is required. For loans above Rs.7.5 lakhs, collateral in any of the form of residential property (house/flat/apartment), fixed deposits, life Insurance with a surrender value equivalent to the loan amount, existing house mortgaged and non-agricultural land can be considered.
Unlike another loan, student loan in India has the option of ‘repayment holiday’, which means the borrower is offered a relaxation toward loan repayment until one year after the end of the education course or six months after securing the job, whichever happens, earlier.
For repayments, banks or private firms have come up with flexible payment options such as EMI payment course, Interest servicing during course & partial interest servicing during course, EMI repayment Post-Holiday /Moratorium period and Step Up repayment facility. You can look these options and then decide the repayment as per your flexibility. However, repayment is also one of the important parts of study loan finance and you need to clear the debt associated with your loan. As this is the best helping hand that you get during your rainy days of searching finances for your higher studies.
Education is expensive and the growing demand cannot be predicted as every day the expenses keep increasing and varying depending upon the changes in course structure and equipment costs. A student loan in India helps individual to set themselves free from any financial obstacles and pursue their higher education without any burden and carve their own path of successes in life.