Why Should Students take Education Loans via GyanDhan? | GyanDhan

Education Loans
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Yes. During the time of visa, you can show it via the loan amount in your own account or sanction letter.

Coming to your question on margin money, I am glad that you know about such deep concepts, not many students are aware of such processes. First f all, you will not have to pay the margin money to the bank, meaning the bank will not be consuming the margin money. Now I will explain what margin money is. Banks sometimes do not pay 100% of the expenses. So let’s say your overall expenses including your tuition and living expenses is INR 50 lakh, the maximum you will get from SBI, for example, is INR 45 lakh rupees, so you will need to pay INR 5 lakhs from your own pocket. The reason for that is banks want you to be equally involved. They would not pay the entire amount themselves because they think that if you a part of it, you will be more serious. But in the case of BoB, if you are going to the top college in their list, you will be able to get it upto 100%. So in BoB, there is a possibility of 0% margin. Usually what happens is the bank pays 90% and you pay 10%, and while you pay 10%, the bank transfers the 100% amount to the university. Or you pay 10% and the bank pays 90% to the university. So both the ways are possible. Don’t be mistaken. This money does not need to be paid to the bank. What actually happens is that you pay the amount to the bank so that the bank can transfer the entire amount to the university.

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New Zealand immigration does not accept unsecured loans from any player. So what you need to do is keep money in your account for 28 days or take a secured loan. Because of so many procedures involved, it is important to get done with them earlier.

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The minimum amount varies from country to country. Since you have not mentioned the country, I will give you a general idea. Normally, you need to pay one year tuition fee and living expenses either in the form of money in your account or sanction letter or liquidity money in your account.

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Yes, only SBI gives fixed interest rate education loans. And no other player in India. Even SBI launched their fixed interest rate loan only five to six months back.

You can read about fixed interest rate loans here.)
To know more about education loans with floating interest rates, read here.

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Living expenses are covered in education loans. So, FTS will be covered under loans from banks for New Zealand. Living expenses go by different names in different countries like GIC in Canada. But we recommend you to mention all these things upfront when you talk to our education loan counsellors that you want your living expenses to be covered. So when you fill an SBI loan application form on our website, there is a separate column for living expenses, tuition fee, and so on. If you don’t mention these requirements upfront, the bank will not cover these expenses for you. Even if you don’t plan to cover the expenses, you should mention that you may need it later. Therefore, suppose, you need money for books, computer, living, etc., it needs to be mentioned upfront.

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No, if you have paid one-time processing fee, we will not charge anything again. The processing fee is actually valid for six months, but it depends on specific situations. By and large, you don’t need to pay the processing fees again. But it may be a little difficult to continue with the process with the remitted fee, if it is one year or two years later, especially in public banks. But in the case of private banks and NBFCs, this will not be an issue.

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Great question. First of all, if you receive the scholarship, you do not have to take the money upfront. So let’s say that you get a loan of INR 30 lakhs, so you don’t need to take the whole amount on day one itself. But this depends on your situation. If you need to show a particular amount for visa, then you will have to take the whole amount. But as I showed in the EMI calculator, you can take INR 5 lakhs for one semester, and then another INR 5 lakhs for the next semester, and so on. But you can anytime prepay after six months. So if you take the entire money, you will have to keep it for a minimum of six months. After that, you can repay it anytime. So that cost will be there as an interest. But I recommend you to not take the whole amount on day one. Just take one semester fee, and let the rest be. If you require it in the subsequent semesters, you can then use it. If you receive a scholarship, there is no need to take the whole amount. There is no penalty on the non-disbursement of the rest of the amount.

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Actually, I don’t exactly know when the interest rate was around this figure, but after the lockdown, the interest rate has furthered reduced. For girls taking SBI education loans, the interest rate is 8.3 percent, and for men, it is 8.8 percent. This is the interest rate you get via GyanDhan. However, let me clarify that no one can change the interest rate fixed by the bank. It will remain the same, irrespective of whether you approach the bank directly or apply through us. So we don’t claim that you will get reduced interest rates if you apply via us. But the good thing is that SBI offers fixed interest rate loans, which means that if you get a loan at 8.8% today, this ROI will be fixed for the entire loan tenure. Whereas in Bank of Baroda, it is floating and changes as per the repo rate by the RBI.

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Great question. This gives us an opportunity to show that we are the only ones in India to offer our students a customized education loan EMI calculator on our website. So I will just tell you how the EMI calculator works taking the amount mentioned by you as an example. So suppose you want to take a loan of INR 30,00,000. Assuming you are a girl student taking a secured loan from Bank of Baroda, the interest rate is 7.6%. The repayment period is 10 years and the course you have opted for is for 24 months. Putting in these values in the calculator, we see the following figures:

Total interest paid: INR 18, 62, 923

Total payment (Principal + interest): INR 48,62,923

EMI per month - INR 40,524

Now if you change the tenure to 15 years, the interest gets accumulated and your EMI per month reduces. But the total amount and interest to be paid will increase. You can check by using your own values too. Now what we recommend to the students is that they get the loan approved for a higher amount but pay as early as you can. There is no penalty on prepayment. But this is a general example. So obviously, we will not be taking INR 30 lakhs on day one. So we will now customize it. So go to the ‘Customize your Results’ section on the EMI calculator page. So suppose if you take INR 10,00,000 in the zero month, then take five lakhs more after six months, and then at the twelfth month, you take ten lakhs more. In the 18th month, you take five lakhs more. And since you are taking a secured loan, you select the no repayment while studying option. Then you calculate the EMI and can see the repayment schedule too. So you see the amount you have to repay from the sixth month onwards. Now if I change it to unsecured loans, which has an ROI of 11%, you will see how expensive it gets. The total amount needs to be paid increases by INR 14 lakhs. So that is the difference between a secured and unsecured loan. Education loan is the costliest product you will ever buy in your life, so you need to make calculations wisely and take the right decisions. So I recommend you to use the EMI calculator before going for any loan.

The other part of the question is whether you will be able to pay the EMI or not. If you get a job abroad after finishing your studies, you will be able to earn enough to pay the EMI. However, the problem arises when you do not get a job. That is something you need to be aware of - that you are not going to a college abroad just for the sake of studying but you should also have your eye on the jobs and placements being offered.

So in the admission industry, many counsellors just work for the money and send students to the wrong college, which is something we don’t recommend. So you need to be very careful while choosing the college. I would also like to mention that GyanDhan also provides admission counselling services to help students get admission in better places. So if you are looking for help in admission, you can get in touch with our team here.