Wednesday 5 June 2019

The educational loans – decoded


The cost of quality education has seen a rise in every year. A recent study states that the cost of quality education is rising at a rate of 15 percent each year. To make a better career, the industries require people certified from a reputed institution. The cost of education in these institutions is more, and it can be the primary reason for making you compromise on your education. Thus many tend to go for an educational loan at TopFintech Companies in India to tackle the situation of the shortage of funds. One may say that opting for an educational loan from Fintech companies in India is the best course of action.



What is an educational loan?

 An educational loan is a loan provided to students by banking or a non-banking organization like Top Fintech companies in India for pursuing a degree in engineering, architecture, management, medicine or arts. It can cover the course fee and other expenses like accommodation, exam fee, and the miscellaneous charges of the college.

They are also provided to courses of part-time or full-time vocational training. They generally tend to cover the cost of graduation or post graduation. Most of the applicant tend to apply for a loan to pursue their post-graduation abroad. The loan amount varies with the bank and the course the applicant pursues. The repayment is done after the completion of the course.

How to secure a loan?

The student applying for the loan from Fintech companies in India is the main borrower, and their parent, sibling, or a spouse can be the co-borrower. The person applying must be an Indian citizen who has secured admission at a recognized institution. The applicant must be 18 or above in terms of their age.

They need to submit documents of 10th, 12th and graduation certificate and the income tax returns of the co-borrower as a part of the documentation. The bank can fund up to 100 percent of the loan amount. For a loan, around 4 lakhs do not require collateral, but above it, collateral is required. The interest rate of an educational loan in banks varies from 1 to 1.35 percentage. The repayment period is around 5 to 7 years.

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