Education loans India to achieve financial freedom

Posted by anayashroff2 on December 14th, 2017

Dark, cold days, expensive smartphones and unfamiliar environment didn’t frighten my friend away from pursuing her dream of becoming an architect. In fact, she has not looked back since embarking on the engineering degree in the capital city of the country and at one of the premium engineering institute. But, her journey was not on the bed of roses, the dream of pursuing her career was about to succumb to the financial claw when one of her well-wishers came up with the idea of an education loan provided by the public and private lending organizations. This stumbling block of financial crunch can force a deserving student to change their course of study and land upon something that they never thought off. A rank holder in the all India based competitive exam going for a plain graduation program because of financial inefficiency is never acceptable.

Targeting the worst enemy of knowledge the financial crunch, banks and Non-Banking Finance Companies have come up with a balmier effect of financial help in form of Education Loans in India. A deserving student like my friend who cracked the Indian Institute of Technology entrance examination with an applaudable rank could pursue her degree only for the education loan. The loan was sanctioned within five days of her application against the security of her father’s non-agricultural plot of land, which he could have sold for her education expenditure, but was saved as a future asset.

The lending organization takes the responsibility of paying the tuition fee in form of Education Loans India, study tours, accommodation charges, books and laptops and other essential study materials. Though lending organizations give 85-90% of the total study expenditure, some NBFCs give 100% of the asking amount by the borrower. To female candidates they give 0.5-1% concession on the interest. Being a scholar my friend started giving tuitions to her juniors to start her repaying procedure, which is minimum of 12 months to 120 months tenure, including the course duration.

Grace period of six months to one year after the course is complete or three months after getting the job, this phase is termed as holiday/moratorium period. The types of repayment for Education Loans in India can be like, interest servicing during the course, partial interest servicing during the course, EMI repayment during the course and EMI repayment post moratorium period. Some NBFCs give step-up repayment facility, in which the interest rate increases with the increase in income of the borrower, keeping in mind less salary in initial phase of the career.

Taking loan is always a burden, but, if one can repay the loan amount with interest in time, then one can have a hassle free course of study.

Like my friend each and every aspirant can dare to fly to achieve their dreams of pursuing a premium course of engineering, medicine, management, aviation and many more from premium institute being self dependent and taking the study loan. So it is suggested to the aspirants to believe in oneself and move ahead to achieve their dreams instead of following the crowd.

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Joined: August 3rd, 2017
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