Whether you are buying a house or about to be going in for higher education, loans are common today. The college fees are increasing every year a lot of the people don’t really have any option, they have to apply for an educational loan. For instance the engineering courses, the fees could be Rs 5 to 10 lakhs and if one wants to pursue a medical degree in a private medical college, the cost will go up to Rs 50 lakhs. For postgraduate courses on management and other courses as well, the fees can shoot up to more than Rs 10 lakhs.
It is not unknown that fees in private colleges are more than the fees in government colleges.
When going in for educational loans it is advisable to do a proper research so that you know pretty well what you are exactly looking for. Banks offer educational loans up to Rs 10 lakhs for courses in colleges in India, and a sum of up to 20 lakhs for studying abroad and these payout of loans are in absolute accordance with the banks’ association norms, however in case of post graduate courses in premier management colleges in India for instance IIM or institute of Management, banks offer loans up to Rs 20 lakhs. These loans cover the tuition fees, examination fees, library fees, laboratory fees and hostel fees and they cover the costs for purchasing books, equipment, instruments and uniform, travel expenses for studies abroad, caution deposit or refundable deposit so on and so forth. There are at times limits on them and the education loan also covers expenses for the project tours and study tours.
What are the conditions for sanctioning the loan?
The lender checks on safe things before the loan is sanctioned. The first and foremost check that is carried out by the lender is to be sure whether the student who applied for the loan has actually enrolled or secured admission for a course or not, after that the quality of the course and the college will also be taken into consideration whether it si certified by UGC or any other university of technical education. The lender also checks whether after doing a course the student will be able to get himself a secured job so that the repayment of the loan is a breeze. The lender also checks the credit history of the co-applicant or the guarantor. At times some education loans are backed by property mortgage, in such cases the lender will also thoroughly check the value of the property.
When an education loan is availed from a bank, loans for tuition fees, examinations, library and every other charge are directly paid to the educational institutions.