thanks you
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.
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.
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.
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.
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.
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.
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.
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.
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.
Replying on behalf of the speaker -
Sorry, agricultural land cannot be used as collateral.
I’d recommend getting in touch with us before you get an admit, get an understanding of everything. Our education loan counselor will explain the loan types, its features, etc.
We can start your process even before you get an admit. We can also start the process the day you get your admit. Though, don’t delay once you’ve got the admission letter as the process might get longer in some cases.
In the case of secured education loan, we can get the property evaluation done before the admit to save time. The rest of the process can be done after getting the admit.
Check your loan eligibility on our website and we will get back to you understand your profile. You can discuss the process and the best time to start it with our counselor
For non-collateral loan, they prefer father, mother, brother or sister. In some cases, they can take your cousins, or your uncle or aunt as a co-applicant. But friends are not eligible.
In the case of cousins being co-applicant, your parents will also be taken as co-applicants. So, there will be multiple co-applicants. For example, if your parents don’t have a sufficient income then they will be taken as non-financial co-applicant and your cousin/uncle/aunt as a financial co-applicant.
You won’t have to provide the remaining amount to the bank. You will be responsible for 35% of your expenses. Also, banks while sanctioning the 65% will ask you the source of the rest of the money as they don’t want to give out a loan to a student who might not be able to get the money and risk their money. So, they do ask from where you will arrange the rest of the money.
Prodigy Finance can give out a loan for 100% of the expenses.
The maximum amount depends on the lender. If you don’t have a co-applicant, then international lenders are the only option and they give out loans for select few colleges. If your target college is on the list of their eligible colleges then you can get a loan for 100% of the expenses. So, up to INR 70 lakhs to INR 80 lakhs, you can get as loan from them.