Education Loan

Education Loan

The most feasible and widely followed source of Financial Aid in India is through student loans to Study Abroad from banks. In our country banks are still the most trusted source one depends on; thus for an education abroad, your parents would always consider bank loans as the first option. With changing times more and more banks offer students' loans extending from education to research. Student loans are offered under certain terms and conditions and definitely under a set scheme of interest. Certain countries accept only Bank loan as students' financial aid. Kerala Nightingale has close tie up with banks who readily offer loans to students who plan to Study Abroad. For International students, there are numerous options offered by Indian banks, foreign banks and non-co-signer loans. Generally, it is noticed that if students get admission offers from top Universities, the loan may be sanctioned without the requirement of a co-signer based in the country where the University is established.
In other situations, the financial institutions and banks require a home country based co-signer or a co-signer residing in the country where you intend to go. Finance Sources for higher education in India is Bank Loans, Education Trusts & Endowments & Fellowships. The main Sources in other countries for studies are University Funding, Scholarships and then Loans from Banks A comprehensive educational loan scheme was framed with the consultation of Government of India with reserve bank of India and Indian bankers association. This scheme can avail a loan of up to 7.5 lakhs in India and up to 15 lakhs for abroad studies. These figures are not stable in nature for banks. State bank of India is availing an upper limit of 20 lakhs and in recent days. Indian banks have upgraded its maximum limit to 15 lakhs for education in India and 25 lakhs for abroad studies. All the details given below will change time to time and students are advised to get right information from the banks concerned.

ELIGIBILITY

The eligibility criteria of the bank to obtain an educational loan from any bank of India:-

  • The student who is seeking for educational loan should be Indian national
  • The student should have secured admission to professional/ technical courses through entrance test /selection program
  • The student should have secured admission to foreign university/institution Take a peek into other important points of consideration that the comprehensive educational loans
DOCUMENTS

our need to keep the following documents in place before applying for an educational loan:

  • Mark sheets of the last qualifying examination for school and graduate studies in India.
  • Proof of admission to the course.
  • Scheduling of expenses to the course.
  • Copies of the letter confirming.
  • Copies of foreign exchange permit, if applicable.
  • Two passport size photographs.
  • Bank statement for the last six months of the borrower.
  • Income tax assessment order not more than two years.
  • Brief statements of assets and liabilities of the borrower.
  • If you are not an existing bank customer you would need to establish your identity and give proof of residence.
MARGIN

If the course cost is up to 4 lakhs, nil for both studies in India and abroad. If course cost is above 4 lakhs, 5% for inland studies and 15% for studies abroad.

SECURITY
  • Banks have the following security/collateral security requirements for granting loans to students. However, the requirements differ from bank to bank.
  • Loan up to INR 4 lakhs. No collateral security.
  • Loan above INR 4 lakhs and up to INR 7.5 lakhs. Security in the form of satisfactory third party guarantee.
  • Loan above INR 7.5 lakhs. (a) Collateral security of suitable (b) Co-obligation of parents/guardians/third Party along with assignment of future Income of the student for payment of Installments.
RATE OF INTEREST

The rate of interest is 10.75 % up to INR 4 lakhs and it does not exceed the Prime Lending Rates (PLR). For a loan above INR 4 lakhs, the interest rate is 11.75 % and it will not exceed PLR plus 1 percent. However, the rate of interest is subject to changes as per the specifications of RBI or the concerned bank.

REPAYMENT HOLIDAY

Loans are repayable in 5 to 7 years. Repayment of both principal and interest will start after one year after completion of the course or six months after getting employment, whichever is earlier. Interest will be charged on simple basis during the period of study / moratorium period. At the commencement of repayment, the accrued interest is added to the principal amount and Equated Monthly Installments (EMIs) Fixed on the total outstading. After commencement of repayment, the benefit of simple interest would be discontinued.

PROCESSING FEE

Most of the Indian banks do not charge any processing fee or upfront charges. The State Bank of India accepts a deposit of INR 5000 for education loan for studies abroad, which is adjusted in the margin money.

CREDIT DELIVERY

You can avail the loan from the branch nearest to the place of permanent domicile.

DISBURSEMENT

While applying the loan, in the case of your future income prospect will be taken into account. If required the means of your parent or guardian can also be taken into account to evaluate repayment capability.
The loan is sanctioned as per delegation of powers preferably by the branch nearest to the place of domicile. No application for educational loan received is rejected without the concurrence of The loan is disbursed in stages as per the requirement/demand directly to the institutions/vendors of books/equipments/ instruments to the extent possible.

FOLLOW UP

The bank from which you have availed the loan can contact the college/university authorities to send your progress reports, at regular intervals.

CAPABILITY CERTIFICATE

If you are going abroad to study, some of the foreign universities require you to submit a certificate from your bankers about the sponsor's solvency/financial capability with a view to ensure that your sponsors are capable of meeting the expenses till completion of studies. Accordingly branches can also issue the capability certificate. For this, financial and other supporting documents may be obtained from you if required. Finally, you need to hit on the right bank with the right educational loan scheme to suit your needs. Parameters to weigh the alternatives are many; as in, whether the bank provides loan for the course you are opting for and if yes, then up to what extent, the margin and security requirements, the rate of interest, proximity of bank to your residence, et al. The discretion is yours after a through analysis.

(Courtesy: Indian Bank website)

Companies who are the providers of student loan

Andhra Bank Need based finance subject to repaying capacity of the parents/ students with a maximum of Rs.10 lakhs. The scheme will apply to deserving/ meritorious students who wish to pursue studies abroad. Students can take loan for Graduation and post graduation – For job oriented profession/ technical courses offered by reputed universities.

How can we help you and why should you choose us over any other company offering a similar service?

Kerala Nightingale is innovative and forward-thinking overseas educational consultants which give excellent guidance. Several years’ success in this field leads us to opening coaching classes for various worldwide qualifying examinations for nurses. We have a proud track record of 100% success of our students in NCLEX-RN Exam. We are the only one company Directing the Nurses for their RN Licenses – US- CANADA- AUSTRALIA- NEWZEALAND and UK.

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