Higher Education is too costly now. If you are belongs to middle class and planning to join self finance course , then you must have to think about study loan. Now India is growing and new parents are saving money in different instruments for the child future which was not available earlier.
Increasing course fee along with expenses is very difficult for a lower middle class family to afford Higher education. Most of the Education fees starts Rs 5 lakh minimum. Management degree in a reputed institute will attract 7 lakh to 50 lakh ,, same way engineering and medical admission will cal more than 10 lakh in tier 2 cities.
For this reason, to enhance the education , every Bank provides study loan to the meritorious student to complete their Higher education in India as well as abroad. Most of the Banks are bound to give study loan under the Govt provision. The study loan vary from bank to bank , Course and city of the education. The Institute approval also take a major role to issue the study loan.
The Institute must be recognized and approved from the respective authority of India. Different Banks has the different rule to sanction the study loan. Some of the Banks will not accept collateral for the study loan and some are accepts if loan amount increase to 7.5 lakhs.
Requirement for the Study loan :-
- Institute must be recognized from AICTE or respective authority of India
- Co Applicant will be required to apply Study Loan
- Third Party Guarantor required case to case basis.
- Loan amount more than 7.5 lakh, collateral is required
- All Academic Certificates along with Admission Receipt from the College
- Fees Structure of the College along with date of payment Letter required From Institute
- Course duration and description of the course must be included in the letter of Admission.
Repayment and Interest of the Study loan :-
Rate of Interest of the study loan vary from Bank to Bank and Institute to Institute. If you are joining Govt Prescribed Institute , banks will charge less interest on the loan. As a example , if you are joining IIM or IIT or same type of Institute , Bank will charge less Interest compare to Other college Admission.
Study loan interest will fall in between 8.5 % to 17 % , and simple interest will be charged up to Completion of the Education and after than compound interest will be for the loan amount. Compound interest will be charged after completion of the course and six month relaxation will be given to the student.
The loan amount of the Education will be direct go to the Institute. Bank will not give you direct cash as loan.
It is the best way to study higher by using Study loan , but timely payment is required for that, other wise compound interest will be charged and that will become Headache for the payment.