Foreign Education Loans: These 5 Things You Should Know | Deshabhimani education

Kochi> When the huge possibilities of global education reach students directly through smartphone windows, UK, USA, Russia, Canada etc. they are the favorite educational centers of Malayalee children. Studying abroad is expensive. Bank loans are the main source of support for almost everyone. However, before turning to banks for a loan, there are a few things to know.

1. Credit requirements

Those who are admitted to study abroad can apply for a loan from any bank. Loans up to Rs 20 lakh are sanctioned under the terms and loans of the Indian Bankers Association which are subject to the terms and conditions of the banks. The marks obtained in the qualifying examination, creditworthiness (e.g. CIBIL), the country of study and the ranking of the admitted university are also taken into consideration for the loan sanction.

2. Preference and loan amount

It is best to make a decision after checking whether the country is difficult to get a loan. Those who are admitted to universities in European countries, Canada, America, Australia and New Zealand can easily get loans. Medical courses are required to be from countries approved by the Medical Council of India (MCI).
The loan amount is determined by calculating the total amount required for the study. That is, tuition fees, living expenses, cost of books etc., travel expenses etc. will be included in the cost of the study.
You will generally be fined 85 to 90 percent of this amount. The balance is to be paid as the applicant’s share at each stage. For example, if a student takes out a loan of Rs 20 lakh for a two-year study which costs Rs 40 lakh, the first installment is Rs 10 lakh from the loan and the applicant’s share of Rs 20 lakh is paid to the university.

3. Warranties Required and Approved

Loans are usually sanctioned against collateral such as property, bank deposits, LIC policies etc. A guarantee worth 110% of the loan amount and interest must be paid during the study period.
After the study period, a one-year moratorium will be granted. Then repayment is allowed up to 15 years. Loan arrears in the applicant’s name can lead to a loan rejection.

4. Interest only on the amount withdrawn

Interest is generally charged from the withdrawal date on the amount withdrawn from the sanctioned loan. So it is better to borrow the maximum amount and withdraw only the required amount. Currently, banks typically charge 10 to 12 percent interest.

5. Concessions and Contributions

Many banks offer interest subsidies to girls and policyholders. Pathos Paradesh, Dr. The interest subsidy is available under the Ambedkar Central Sectoral Scheme. Apply through the website www.jansamrth.in. More information at www. Available at minorityaffairs.gov.in website.
(The author is the regional director of the State Bank of India Alappuzha. Opinions are personal.)

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