Student Loan: A helping hand in pursuing education

Education is essential for everyone. In today’s competitive world education is necessity for man after food, clothing, and shelter.  it has become an indispensable part of life both personally and socially. As a student, we always want to study in best college with our chosen course of study. But, few people are not able to pursue their dream of higher study because now pursuing education has become a costly affair.  Financial problem is main hurdle that people faces in pursuit of their higher education. In such a situation student loan runs to the rescue of a student. 

Now-a- days, study loan have been made hassle free to apply for and get too.  It is viable for a person to visit the website of a bank or financial institution and understand the student loan facility and terms & conditions associated with the loan. You can choose from various banks or financial institution.  The terms and conditions are not that hard to be met. The interest rates are low. Thus, it is easy for the students to apply and acquire an education loan. The education loan process may vary from bank to bank and from financial institution to financial institution. Banks and financial institutions are encouraging student loans

Student loan in India covers:

·        Expenses related to tuition fee, admission fees, examination fee and other compulsory fees that are related to the course demanded by university or institute.

·         Expenses (if any) and hostel fee.

·         Expenses related to purchase of books, laptop and technological tools.

·         Any other expense related to complete the course- like study tours, project work, thesis, etc.

Student Loan plays an important role in helping people to cross the hurdle of finances in pursuit of their educational dreams. In the economic slowdown,   it is very tough for parents to provide fund for education. Study Loan helps meritorious students to come out of this crisis and go for education. So, without worrying for their educational expenses, students can fulfill their educational dreams.

But, you need to be cautious while taking student loan, you should choose the bank or financial institution that offers low interest rate, no prepayment penalty, minimum or no collateral required and flexible repayment options. You must go through each and every detail of the education loan and should be clear about terms and conditions to avoid problems at the time of repayment.

Various Significant Components That Should Be Considered When Getting Student Loan

When you are young, during your early ages, you wonder of endless possibilities and dream the impossible. For some, these dreams haunt them when they grow up and lead them to live their lives and for some, these dreams end up as mere dreams. The only difference it takes to make the coin flip is the hard work that you put into it. Most of these dreams turn out to be career choices that compel you to make choices for your future. And when the matter is to make your dreams a reality, more is less and efforts are what fuel the motive ahead. Taking chances and trudging along the path with caution becomes crucial as the life unfolds and you step in the real world, riddled with serious difficulties that stand in your way.

Career choices are often the most difficult ones to make. They come bundled with a price tag and the price runs high if the student is aiming for an international degree for tertiary education. In such critical times, education loans become the hour of the need to ease off the financial pressure. And while one decides to opt for a student loan, he should consider all possible vantage points and loopholes that he can encounter during and/or after the years of education. To understand the risks involved, the student should necessarily fill out all the important documents and read carefully every single terms and conditions listed in them. Carefully interpreting and understanding the loan criteria, helps the student to develop a good grasp of their responsibilities towards the lender. Once achieved, the next part is to understand the components involved in the desired educational loan.

You must understand that student loan - or any kind of loan in that case - is just borrowed money that one has to pay back eventually, with some added interest. Hence you should always remember; whatever you borrow you have to pay back, so only borrow what you need. Next valuable thing is to know what type of loan will be suitable for your needs.Education loan can be borrowed in three parts:

1. Compulsory fees: This covers the essential fee structure demanded by the university that includes tuition fee, admission fees and other compulsory fees that are related to the course.

2. Living costs: This looks after your living costs. If you are living abroad, not at some relative’s place, the living costs will help you manage your rent and fund your other expenses.

3. Course related expenses: This includes books, essential computers and technological tools, travel expenses and student association fees. It will help you to efficiently complete the selected course without any major hindrances.

Before leaping on the above three benefits, you should stop and reflect on your needs. If your personal funds or any other repository is able to take care of any of the above expenses, you should immediately opt out of the education loan. It is advisable to enroll for only what is needed because seeking more aid implies paying more interest. Only when you have considered all the important components and legal procedures carefully, should you make a concrete decision for your student loan amount.

Source: http://goarticles.com/article/Various-Significant-Components-That-Should-Be-Considered-When-Getting-Student-Loan/7861399/

Education Loan Repayment Tips

Timely education loan repayment is extremely important to keep your credit rating good and avoid extra interest costs. Meticulous planning is extremely necessary to repay the education loans faster. Students who have taken an education loan should compulsorily plan to save more every month after getting a job, so he/she collects corpus in order to pay loan faster. Education loan in India has a 5-7 years repayment period, so the installments are not that high and can be paid easily. Let’s take a look at some tips that can help you pay education loans faster.

Using the moratorium period:
The education loan repayment does not start immediately. Banks levy simple interest on student loans during the moratorium period and course of study. The amounts add up and increase the debt burden. You can pay the interest levied on the principal amount during the moratorium period. Paying interest during the course of study will lower the repayment installments after the moratorium period is over.

Get a job:
Waiting for your dream job is not always a good idea. The employment scenario changes with the economy. An economy slump causes losses of thousands of jobs and it may take long time to get a suitable opportunity. Therefore, you should judge the scenario and take up some job until you get your dream job. Having some job is better than not having one, especially when you have an education loan to repay. Take up job even if it is in sales, there are several things to learn and your experience will grow with every day you spend on a job. Besides having a job also means you will be able to pay education loan repayments on time and clear off the debt early.

If you are finding it difficult to find a good job after completing your higher education or the education loan repayment installment is high, you can consider refinancing your education loan or restructuring it by approaching the bank. Many banks will agree to refinance the loan if the employment market is downward during the repayment period.

How to get Education loan in India?

With the cost of higher education abroad rising every year, parents have no option but to apply for education loan to enroll their children in a foreign university. There are several misconceptions about student loan offered by banks and financial institutions. Majority of the fears associated with the education loans are far from truth. Getting education loan in India is not complicated as thought to be. The eligibility, payment terms, interest rate, tax rebate and terms of loans are some of the important loan elements that you should focus upon while applying for a student loan. Let’s take a look at some of these important elements of the student loan and know about the procedure to get an education loan in India.

• Eligibility: Only Indian resident aged between 16-35 can apply for a student loan. The applicant must have secured admission to the professional or technical course before applying for the loan.
• Repayment terms: the repayment of education loan in India generally starts six months after taking up a job or one year after completing the professional course whichever is earlier.
• Tax rebate: The Government of India offers tax rebate on the interest you pay on the education loan. The tax rebate is based on Section 80-E of the Income Tax Act 1961.
• Term of loan: the term of the loan is generally 7 years which also includes the period when the borrower is not required to make any repayment.
• Interest rate: the interest rate of education loan is generally in the range of 15%-18%

The above given information is only general. Every bank and financial institution has their own terms and conditions, interest rates and eligibility criteria for the student loan. The maximum loan amount you can get differs with the financial institution offering it. For education loans above 7.5 lacs, you need to present collateral.

To get an education loan, you need to visit the financial institution or bank which offers student loan. You can talk to education loan consultant hired by the financial institution who can give you clear idea about the eligibility criteria and the procedure to apply for the loan. You need to carry your educational documents including the application of the foreign university in which you want to enroll. If you are applying for an education loan above 7.5 lacs, your guardian or the parent has to sign as co-applicant for the education loan. The role of the co-applicant in the loan process is that of the primary debtor. The financial institution may also ask for additional security as collateral if you are seeking 100% education loan. The education loan will be only granted after you present University’s fee demand letter.

Some banks and financial institutions have their list of approved educational institutions and professional courses. The loan procedure is simple and more quick if you are seeking admission in their approved list of educational institutions. So, if you have secured admission in foreign university and looking for an education loan in India then head towards any bank or financial institution that offers education loan for higher studies.

Source: http://benoyj.hubpages.com/hub/How-to-get-Education-loan-in-India

Avanse Education Loans

India is a major hub for education, both mainstream as well as new age careers. The career opportunities available today are many. The need of the hour however, is financial support that helps students pursue the careers of their choice, without having to compromise for want of it. At Avanse, we understand this and offer simple and hassle free education loan to pursue your graduation or post graduation in India.

Avanse Education Loan for Working Professionals: An ambitious, young corporate professional like you always aspires for more from life. We understand your desire to quickly move up the corporate ladder, which is why we offer Executive Education loans for Executive/Professional Based Programs, to equip you and help you achieve your goals.

Avanse Study Abroad loans: In the endeavour to build a career and a future, you may often have to leave the comforts of home behind and reach for foreign shores. This obviously entails a huge financial investment. Avanse understands this predicament and keeping in mind the aspirations of the student and parents, offers education loans that are hassle-free and student-friendly. Studying abroad has never been easier.

Make the Right Choice: Avanse is a new-age education finance company. We pride ourselves in being pro-student, with an outlook that seamlessly combines technology and empathy. We are agnostic to the choice of careers and are open to financing modern day courses, hitherto shunned or ignored by other financers.

However, we are more than just a financier. We understand your aspirations and goals and have designed loan products to suit diverse needs. We believe in enabling careers and go the distance by mentoring and guiding you along the way. The Avanse Edvantage is the extra edge or advantage we offer, demonstrating our resolve to help you create a future without limits.