Education Loan for Foreign Studies: A Complete Guide for Students | GyanDhan

aman.jain

Hello,

Thanks for joining the session, please ask your questions by clicking on reply button.

Aman

Meghal_Darji

If my plan is to stay in the country where I study and repay my loan by earning in the same country, then wouldn’t international lender be a better option?

rabh

With Excellent Acedemic Record in GRE, B.Tech & School

With Aerospace Enngineering

With Good CIBIL Score of Parents

Poor Repayment Payment Status

No collatoral

If Indian institute or Bank will provide unsecured loan ?

J_k

how many co applicant is required for non collateral loan for eg 16lac. And how much salary should be their of co applicant. Also who can become co applicant

Pratik_Rawal

What if my actual loan amount reduces?

For example, if i apply for a loan of 20 Lacs and it gets passed, however after the sanction i recieve confirmation for a partial scholarship which reduces the external finance ie loan need to 12 Lacs. What can me done in this scenario?

Thank You! Great Session.

rabh

No repayment (I mean current status of paying EMI is poor) does not match

Pratik_Rawal

Also, what is the scenario regarding early repayment in case of a secured/unsecured loan? and is it recommended to do so or should we use the entire tenure?

Kalyani_Bedre

Hi,

I have an overall 61% in my BE with 2 years of IT experience. Planning to take IELTS. Planning for MS (BA) in Australia. Is it possible to get around 45lac loan on a collateral worth 30lac ?

J_k

How do monthly interest is calculate in non collateral loan for eg for 1 lac what will be monthly interest we have to pay until course is completed.

Kalyani_Bedre

What would be the tenure of years for repayment

Nishit_Taparia

Does any bank offer simple interest rates in case of secured loans for a period or do all institutes offer compound interest rates?

PranavPatel

I need a loan to pursue a one year graduate diploma. post that i want to pursue masters as well. How should i apporach the finances for that. Obviously initially i will have to obtain a loan for the graduate diploma but what do i do post the completion of the same.

Pratik_Rawal

Would a good academic background, admit from a good university, good GRE and IELTS score help in getting a lower interest secured loan or do those factors do not come to play in a secured loan?

Radhika_Bhong

Can agricultural land be used as collateral? When can I contact Gyandhan for loan process? Can we start this before getting the admit?

J_k

For non collateral, does cousins or friends are they eligible as co applicant or only blood relation family members are eligible?

Sorry i got too many questions coming one after the another.

rabh

If prodigy gives 65% of the loan amount and u need to provide 35% ?

rabh

If they give max 65% ? Prodigy

J_k

What is maximum loan amount eligible if suppose there is no co - applicant or co applicant is necessary in non secured loan

rabh

I checked net and as per them, prodigy generally sanctions 65%

aman.jain

rabh:

I checked net and as per them, prodigy generally sanctions 65%

GyanDhan

Prodigy Finance India Education Loan | Eligibility, Interest Rate and Process

Get Prodigy Finance education loan with GyanDhan. All expenses covered & loan without
collateral or co-applicant available on abroad education. Contact for free loan assistance now!

rabh

thanks you

vishakha.bhagia

Replying on behalf of the speaker -

There is a difference between loan disbursal and loan sanction.

Loan sanction means that the banks has made INR 20 lakhs available for you to use. This is the amount you are eligible to get from the bank.

Loan disbursal is the money that is transferred to your loan account and used by you. The interest is charged on the amount that you use and not on the sanctioned amount.

So if the sanctioned amount of your education loan is INR 20 lakhs and you use only INR 10 lakhs, then it is okay and won’t be a problem. In fact, every student that takes an education loan ends up using less than the sanctioned amount. This is because they get part-time jobs, or internships to support themselves.

What matters in the end is the amount that you use and interest is charged on that amount. So, you won’t have to worry about it.

vishakha.bhagia

Replying on behalf of the speaker -

Co-applicant can be your father, mother, brother or sister for banks. On taking the loan from NBFCs, co-applicant can be your uncle or aunt as well. Though, the chances of approval are higher if the co-applicant is your immediate family member.

For a loan of INR 16 lakhs, income of INR 35,000 per month would be sufficient. You can also have multiple co-applicants. But for a loan of INR 16 lakhs, one co-applicant would be sufficient.

vishakha.bhagia

Replying on behalf of the speaker -

The reason for poor repayment would matter. If it is a genuine reason then it would be acceptable. But if it is poor intentionally, then it will hamper your chances of getting a loan.

vishakha.bhagia

Replying on behalf of the speaker -

Great question!

You can repay anytime you want after six months of the loan disbursement, be it secured loan or unsecured loan. There is no prepayment penalty. Suppose, you take an education loan of INR 20 lakhs today. After six months, you can repay the entire amount if you wish to and there won’t be any penalty.

And, yes, it is recommended to repay the loan as soon as possible. After the course, people get good jobs or get signing bonus, so they tend to repay a huge chunk of the loan reducing the financial burden. Early repayment would save you a lot of money that you’d have to otherwise pay as interest. So, repay the loan as soon as possible. Lower the outstanding principal amount, lower the interest you’d need to pay.

You can use the EMI calculator that is on our website to understand the calculations. You can also customize the settings according to your case.

GyanDhan

Education Loan EMI Calculator | Education Loan Repayment

Our Free Education Loan EMI Calculator is customized for education loans. Get the payable interest and EMIs for a given interest rate, loan amount & planned disbursals.

vishakha.bhagia

Replying on behalf of the speaker -

From public sector banks, you’d only be able to get INR 30 lakhs against a property with a market value of INR 30 lakhs. However, on applying for the loan from NBFCs, you’d be able to get INR 45 lakhs.

I’d recommend you to get done with your IELTS. Aim to score 7.5 or 8. Get admission in a top university. If you need help with that, do reach out to us. Once all this is done, get in touch with us as we’d be able to get you a loan of INR 45 lakhs against a property of INR 30 lakhs. We know the NBFC that would give out such a loan.

So, in conclusion, your loan won’t be possible from public sector banks. Your best bet are NBFCs.

vishakha.bhagia

Replying on behalf of the speaker -

Loan tenure can be 10 to 15 years. You can take up to 15 years to repay the loan. However, as I answered before, prepayment is always beneficial and will save you a lot of money.

vishakha.bhagia

Replying on behalf of the speaker -

Simple interest would be charged during the moratorium period. As you are paying interest per month, there is no accumulation of interest. It won’t get compounded. In a secured education loan during the study, simple interest is charged.

After the moratorium period, you’d be repaying the interest along with your principal amount, which is compounded.

vishakha.bhagia

Replying on behalf of the speaker -

It is difficult to get loans for two courses. Either you can finance graduate diploma by yourself and later take a loan for a master’s, or you can take a loan for a graduate diploma, repay it, and then do masters. Though there are ways to increasing your loan amount or topping off your loan, it really depends on case to case basis. We will have to look at the collateral value in the case of a secured loan or the income of the co-applicant in the case of an unsecured loan.

vishakha.bhagia

Replying on behalf of the speaker -

A good academic profile will help in getting a lower rate of interest in unsecured loans.

In secured loans, a good academic score won’t matter much. For example, if you take a loan from SBI, the rate of interest (8.8% for men and 8.3% for women) won’t change. In unsecured loans, there is no fixed interest rate and they tend to charge as high as they can, so a good academic profile might help.

To get the lowest interest rate, we will start your loan from multiple places and we will negotiate to get the lower interest rate.