Category Archives: Finance

Families who want their children to pursue higher studies and are unable to make ends meet are on the lookout for an education loan without collateral in India.  It is no longer easy to secure an education loan as students have to meet a strict set of criteria to become eligible for the loan. Most loan applications get rejected midway in the absence of a collateral or third-party guarantee.  Education is a blessing that can break the shackles of poverty, but how to get a loan when you do not have any property, fixed deposits, land, bonds, insurance policies, or shares to pledge as collateral is a worry for most of the middle-class households in India.  In most cases, financial institutions or private moneylenders ask for collateral as a security pledge in case of loan default so that they can recover their money in adverse conditions by selling the collateral property. Without the collateral, most banks, NBFCs, or even private lenders hesitate to sanction an education loan with a limit that exceeds INR 7.5 lakhs as the chance of default is very high. Apply for Education Loans What is a Non-Collateral or an Education Loan without Collateral? Non-collateral or an education loan without collateral is a type of education loan where the loan applicant can get the loan amount without pledging security against it. In the case of a non-collateral loan, the borrower has to meet specific criteria that the loan authority has set. These criteria can be country-specific, a particular study program, or a minimum loan amount. Collateral vs. Non-Collateral Education Loans Read More Where can you get an Education Loan without collateral? 1. Banks Banks generally follow the guidelines set by IBA for education loans without collateral, although their internal rules may vary with the set criteria. It is the sole right of a banking institution to make changes for a loan amount that exceeds INR 7.5 Lakhs. The interest rates, the upper limit of the maximum loan amount, and repayment terms vary from bank to bank.  Edufund is also associated with public and private banks and NBFCs in India and can help you get the best possible terms for the education loan without collateral if you are interested in borrowing money from a specific bank. The app also has a team of dedicated experts who will talk on your behalf and bargain for the best loan terms.  Starting the loan process at EduFund is very straightforward, as you can get direct quotes from partner institutions. Higher loan amounts, lower interest rates, and hassle-free loan process are possible only at Edufund.   4. Private Lenders and Non-Banking Financial Companies Private lenders and NBFCs generally sanction education loans without collateral for an amount that exceeds INR 7.5 lakhs. This is a tricky situation for the borrower as these types of education loans come with a higher interest rate compared to the collateral-free education loan of a maximum amount of INR 7.5 lakhs.  5. Education loan without collateral at EduFund App Suppose parents or students are unable to meet the set criteria for an education loan without collateral in India. In that case, they can visit the Edufund App and meet with the experts who handle loan applications.  Edufund has a dedicated loan page that will answer all your loan-related queries and direct you toward the proper channel so that it becomes possible for the applicant to become eligible for an education loan up to INR 75 lakhs at the minimum possible interest rates without any collateral.  The service is free, and there are no hidden charges that will come at a later date to haunt you.  Conclusion  Education loan is the need of the hour, and if you can get an education loan without collateral in India, then it is a win-win situation for a student who needs the loan amount to fulfill his dreams. Student loans serve as important financial aid for millions of students who otherwise would not be able to get a proper education and desired jobs.  TALK TO AN EXPERT

A member of your family (preferably your parents) who co-signs the loan application and assumes responsibility for repayment if you are unable to do so is known as a co-signer. Additionally, banks require a local contact in India for any due diligence while you are away.  In other words, whether applying for a loan from a public or private lender, having a principal co-applicant is required. A primary co-applicant and a financial co-applicant can be the same individual, although private lenders (private banks and NBFCs) require one during the loan application procedure.  The need for a co-signer  In many situations, having a co-signer for your loan makes sense.  Your credit is poor.  You don't make a lot of money.  You are a young person without any credit to your name.  You can get around these obstacles and be granted a loan by using a co-signer. If you and your co-signer are accepted, you might even be able to acquire interest rates that are lower.  However, a few things must be in place for this configuration to function:  Between the co-signer and the borrower, you should be confident that you can trust each other because the borrower will be demanding a lot from the co-signer.  The co-signer must be in good financial standing. Co-signers may not be permitted to co-sign on the loan if their credit is equal to or worse than yours.  The co-signer must be capable of making the loan payments on their own in the event that the borrower defaults on the loan.  Looking for a co-signer  Most borrowers who employ a co-signer pick someone close to them, such as their spouse, parent, grandparent, sibling, or a person with a similar relationship.  Sadly, not everyone has access to these choices, and in certain situations, family members may not have excellent credit, which is needed if they intend to apply for a loan with you.  Try contacting these people if you find yourself in this situation:  Friends: Do you have a friend that is trustworthy with money and has a stable income? Inquire if they would mind signing your loan as a favor.  Close relatives and cousins from extended family are all acceptable co-signers. Just make sure they have solid financial standing and decent credit (i.e., manageable debts and steady income).  Mentors: You can also consider finding a personal or professional mentor. Remember that they will need to know you well enough to have confidence in your financial routines.  Friends of your parents: You've probably known a couple of your parents' friends all your life. Are any of them willing to take a risk on your behalf?  Why do you need a co-applicant or co-signer?  A co-signer is essential to having the loan approved throughout the entire procedure.  Banks require some type of guarantee from borrowers that the loans won't turn into bad loans in the event of non-repayment for whatever reason. As a result, students have found it difficult to deal with the circumstance when they needed a co-applicant or co-signer.  In a scenario, where the student defaults on the loan after completing their studies, a co-signer assures that the lending agency's requirements are met and that there are reasonable prospects for the loaned amount to be recovered.  Cases where students' loan applications are denied because they lack a co-applicant or co-signer  For the processing of student loans from overseas, there are numerous channels available. The most crucial need for students to meet in order to proceed with the application for an education loan is having a co-signer.  However, this restriction is no longer a concern for students whose parents or other close family members are unable to serve as co-signer.  There are a few methods currently for processing a sizeable portion of the tuition cost through loans without needing collateral or a co-signer, so if a student doesn't have a co-signer, they shouldn't worry too much.  The granting of unco-signed, unsecured loans  Before granting a loan, banks, and NBFCs review a student's profile and take into account a number of variables. The likelihood that the loan will be approved and credited to the college's account at the time of admission or in the loan account is extremely high if a student meets the requirements established by the banks. Nonetheless, if you are a working person, the procedure may become simple, and acquiring the loan may also enhance.  The following considerations are taken into account while determining the loan amount:  The college to which applicants have been admitted.  The university belongs to the upper tier or the tiers below.  The candidate's credit history.  The sum of the scholarship received. (If any) Consult an expert advisor to get the right plan TALK TO AN EXPERT

As more and more individuals move out, earning a degree from an international institution may sound fancy and appear aspirational. Still, it has expenses, and handling them can be challenging. So, here are some potential risks and disadvantages of utilizing student loans for study abroad, along with suggestions for reducing them. Drawbacks of using abroad education loans Student loans can be useful for acquiring domestic or international studies funding. However, it might not be as simple as you believe in obtaining a student loan. Although applying for the finest student loan program is simple, getting your loan accepted might include a number of challenges. Another important consideration is the interest rate on student loans, which is frequently higher than that on other types of loans. The problems with student loan debt are not limited to these. The following are a few drawbacks of student loan debt for international study: 1. You have to start your career with debt If you rely on student loans to fund your school, you will start off in debt when you become an adult. Yes, if you have a college degree, you may be able to earn more money overall than someone who only has a high school diploma. However, depending on how much debt you take, it could be challenging for the first few years after graduation, especially if, like millions of other college grads, you require assistance finding a job that pays enough to meet your expenses. 2. Defaulting on your education loans can tank your credit score Missed payments, student loan defaults, and taking on more debt than you can manage after graduation can all have a significant negative impact on your credit score or the credit score of your co-borrower. The worst case situation is defaulting since it means you could not pay back the lender for the loan you took out. 3. Education loans might not cover all your expenses Annual borrowing limits apply to the majority of federal student loans, and some private lenders could as well. Depending on how much tuition, fees, materials, board, and lodging will cost, you might still need to look for extra sources of income to finish your degree. The potential risk of using abroad education loans Both lenders and borrowers run a substantial risk when providing student loans. Unlike other loans, student loan repayment is more unclear since it depends so much on the possibility that students will pass their courses and find employment. Students may receive negative feedback on their credit history, and lenders may suffer loan default if students don't complete the course or find employment in a timely manner. On the other hand, students are under a lot of stress, and high-interest rates may impact their ability to repay their debts on student loans. How to mitigate the risks and overcome drawbacks? When choosing the finest education loan for higher education, extensive research and comparison are required to mitigate the risks and have the least drawbacks. Compare the interest rates and repayment alternatives offered by several organizations before selecting an education loan. You could also speak with a professional. To help you save money, they can help you organize your repayment plan and negotiate a reduced interest rate. Determine how much money you need to pay for your higher education before taking an education loan. TALK TO AN EXPERT FAQs Why are student loans good? Student loans are regarded favorably since they come with extra benefits that make studying abroad manageable. When you take out a student loan, the lender provides you time (a "moratorium period") to focus on your studies and choose a job before you begin making payments on it. Other loans, such as personal loans, house loans, etc., are not eligible for this choice. Does taking out student debt make sense? Yes, student loans are helpful since they reduce the pressure of paying for your expenditures through enticing programs given by banks to study abroad and many other things. Taking out an education loan is a realistic choice because it lessens parents' load, and the repayment terms are fair. Can I get an education loan for studying abroad without collateral? Yes, student loans are beneficial since they ease the burden of covering your expenses through alluring bank programs that encourage you to do things like study abroad. Even the financial team at WeMakeScholars suggests that getting an education loan is a sensible decision because it eases the burden on parents and because the repayment conditions are reasonable. The final tip is that make sure you've done your research, decided which course of action is best for you or your child, and then finalized a sound education strategy to create a bright future!

Do you know that Indian students who wish to study in America have access to a variety of educational loans? Since the US is one of the most sought-after countries for Indian students looking for educational opportunities abroad, a conversation on student loans for US education is extremely pertinent. Few nations in the world provide as many advantages to higher education as the United States. Most of the best universities in the world are in the US, and the job prospects in the US after graduation are unsurpassed.  While promising, American higher education is also very expensive. One of the effective options for covering such enormously high prices is to take out student loans. You can find the best loan package for you if you conduct your research or enlist the assistance of knowledgeable loan counselors.  We will go into great detail about the various lenders, application procedures, and educational loan alternatives for Indian students who wish to study in the US in this blog.  Are student loans the best option?  An education loan gives you the readily available finances you need to achieve your goals. Even if you have savings to pay for your studies in the US, you should think about taking out an education loan because, with wise investing, you can earn more interest than you would pay for your loan.  Additionally, there are some tax advantages for student loan debt. The tax savings from an education loan over self-funding would be 4.5% under the new TCS (Tax Collection at Source) regulations. Since 1 US dollar is equivalent to more than 80 Indian rupees, this differential might be even greater for the US!  The following are a few of the top advantages of taking out a student loan to study in the US:  Personal savings are not affected.  Tax relief for student loans  Individualized loan products  Payment following graduation  Self-dependence  Unstressed study abroad in the US!  What should you look for while choosing a student loan?  Finding the best student loan is difficult. You need to consider a number of factors while picking the best lender.  When choosing the school loan program, you should consider a number of important factors, including:  Interest rates  Interdiction period  Processor charge  Prepayment fee  Fixed versus adjustable interest loans in USD and INR  Loan duration  Loan amount  What types of student loans are available in India for studying abroad in the United States?  There are two types of student loans available in India for studying in the United States:  Secured loans for education are those that include collateral. As the name implies, in order to obtain an education loan, you must offer the lender a security interest in a piece of property.  This collateral comes in two varieties:  Tangible assets such as homes, commercial real estate, and retail spaces. Such as government bonds, life insurance, and fixed deposit accounts.  Unsecured student loans are those that lack any form of security. As the name implies, you can apply for an education loan without giving the lender any collateral. However, a co-applicant is required, and that co-income applicant will play a significant role in whether the loan will be approved. Additionally, there are very few private Indian and foreign lenders that give unsecured education loans for amounts over INR 7.5 lakhs.  What categories of lenders provide Indian students with loans for US higher education?  There are four main categories of lenders who offer education loans to Indian students who wish to study in the US:  Publicly traded banks  Privately owned banks  Non-banking financial companies (NBFCs)  Worldwide lenders  Each lender and every aspect of the educational loans they provide—including the maximum amount that may be borrowed, the requirements for eligibility, the interest rates, the length of the payback period, etc.—will be covered in full.  What costs in the US are covered by student loans?  In India, there are numerous loan programs that can be used to pay for nearly any price besides tuition.  Some costs covered by the study loans include:  Amount due to the college  The cost of lodging  Examination, lab, library, and cost  Instruments, books, etc.  Building money, refundable deposit, caution deposit, etc.  Traveling costs  Insurance deductible (if applicable)  Laptop (if required)   Other costs, such as thesis and study tours.  Which Indian government bank programs give the best education loans to students who wish to study in the US?  SBI Global Ed-Vantage: State Bank of India offers student loans for the US through its Global Ed-Vantage program for Indian students. A loan between 20 lakhs and 1.5 crore is available. The loan can be taken out for a maximum of 15 years, and repayment begins six months after the course is over. You must give collateral as security in order to obtain this loan. This collateral is primarily seen as the main source of security by SBI. The profile of the co-applicant is not very significant. If you want to get SBI RiNn Raksha insurance on your loan, you can additionally receive a 0.5% interest rate discount.  Bank of Baroda Scholar: One of the best public-sector banks for international student loans is the Bank of Baroda, which offers loans to students from all over the world, including the US. The bank has preserved a variable price structure according to the student's profile, course, and country because it recognizes that every study abroad student is unique. The majority of the top institutions in BOB's list are American educational institutions. For the colleges on the list, the BOB education loan offers a 100% margin, a 12-month moratorium term, and a low interest rate.  Which of India's top private banks offers student loans for study abroad in the United States?  A few private banks in India offer loans for students who want to study in the US. The most prominent ones are:  Axis Bank: One of the biggest commercial private banks in India, Axis bank provides loans for students who want to pursue their studies in the US. Up to INR, 50 lakhs is the highest loan amount available for unsecured loans. Typically, the interest rate is between 11% and 15% per annum. For loans up to INR 4 lakhs, there is no margin money, whereas INR 4 lakhs and above have a 15% margin. There is no prepayment penalty, and the appropriate moratorium period lasts up to 12 months following the course's conclusion.  ICICI Bank: Indian students can apply for both secured and unsecured school loans from ICICI Bank to study in the United States. For secured loans, the maximum loan amount is INR 1 crore, and for unsecured loans, INR 50 lakhs. The introductory interest rate is 10.5% p.a. Up to INR 20 lakhs. There is no margin money; however, INR 20 lakhs and above have a 15% margin. There is no prepayment penalty, and the moratorium period lasts up to 6 months after the course is over.  Which NBFCs are the best at providing student loans for American universities?  HDFC Credila: The first specialized education loan provider in India is HDFC Credila Financial Services, which provides study abroad loans to more than 1000 colleges in more than 35 countries. The maximum amount for education loans from HDFC Credila without collateral is INR 50–60 lakhs. The interest rate is between 11% and 12.5% per annum. Students must pay interest during the study period, and the principal repayment process begins six months after the course is finished. There is no prepayment penalty, and the processing cost ranges from 1% to 2% of the loan amount (plus GST). A 12-year payback option is offered by HDFC Credila.  Avanse Financial Services: Avanse Financial Services provides educational loans to 1,262 universities and more than 6,000 courses in 44 different countries. The largest loan amount from Avanse that may be obtained without any collateral is INR 50 Lakhs. The interest rate is between 12.35% and 13.65% per year. Simple interest or partial interest must be paid by students during the study time, and repayment of the principal amount begins six months after the course is finished or three months after acquiring a job (whichever is earlier). There is no prepayment penalty, and the processing cost is typically 1% of the loan amount (plus GST). The maximum repayment term for Avanse student loans is 15 years.  Which leading international lenders provide loans for higher education to study in the USA?  MPOWER Financing: Education loans are available through MPOWER Financing for higher education in the US and Canada. Without a co-applicant or collateral, the education loan is available in USD and CAD. The maximum loan amount from MPOWER Financing without collateral is up to USD 1 lakh (INR 82 lakhs). For graduate courses, the interest rate is approximately 11.99%, whereas, for undergraduate courses, it is approximately 10.49. The payback period may last up to 10 years, and there is no buffer money required.  Prodigy Finance: Prodigy Finance is a UK-based financial institution that provides school loans to students based only on their academic profiles and does not require any collateral or co-applicants. Depending on the destination, the study abroad loan is available in USD and EUR. The interest rate is around 13.23% APR. The payback period may last up to 20 years, and there is no buffer money required. Six months following the course's completion, the repayment period begins. Visit Prodigy Finance Education Loan for more information.  What documentation is needed to apply for a student loan in the US?  The paperwork needed to apply for an education loan varies depending on the lender. The usual list of paperwork an applicant could require while requesting an education loan is as follows:  For the applicant  Identity proof can be provided through a valid government-issued identification card, such as a PAN, passport, driver's license, or voter ID card.  Address: A recent copy of your phone bill, electric bill, water bill, gas bill, driver's license, or Aadhaar card.  Passport Academic History: Undergraduate, 12th, and 10th Grade Results Admissions Test Score (e.g. GMAT, GRE, TOEFL, etc.)  Letter of admission is evidence of admission. Cost and expense report. Two passport-size pictures.  If there have been any prior loans from other banks or lenders, a year's worth of loan accounting statements.  3 months' worth of pay stubs if the student has employment  Co-Statement Applicant's  (PAN or Aadhar or another form of identification)  A three-month pay stub (if salaried) or business address documentation  Most recent six-month bank statements  Form 16 for 2 years and ITR for 2 years  Own home evidence (E-Bill)  Photo the size of a passport  Mother of the applicant:  A passport-size photo   Aadhar or PAN card as proof of address  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Severe health issues have emerged as a result of the current pandemic crisis. It has highlighted the importance of doctors and the healthcare industry in fighting the COVID-19 epidemic. But do you know how much medical school costs in India? Do you know where a doctor's journey begins? Yes, after earning an MBBS degree, a doctor's journey officially begins.  Students typically use student loans for MBBS in India to pay for their medical education. However, anyone who has applied for an education loan for an MBBS program will tell you how tough the entire procedure is and that most of the time there is little support from any financial organizations. What does that imply for students pursuing an MBBS in India?   Read this article through to the end if you're interested in learning more about the lenders who provide education loans for MBBS in India. This post attempts to provide you with the information you need. Types of student loans  Education loans are further divided into two categories because they are one of the main sources of finance for education.  Secured student loans: Secured student loans are made possible by the use of security as collateral. Here, in order to be eligible for an education loan, the borrower must pledge the collateral to the lender. Immovable property, liquid security, or any third-party collateral (such as a house, land with clearly defined boundaries, fixed deposits, government bonds, etc.) are the three main categories of collateral recognized as a security.  Unsecured student loans: Unsecured student loans are awarded based on the applicant's academic record and the financial situation of their co-applicant. In this, students are qualified for an unsecured school loan without having to provide any collateral security. Students must therefore pay close attention to the eligibility requirements stated by the financial institutions.  These are the two categories of student loans offered in India. If you're looking for an education loan for an MBBS in India, get in touch with our staff to get expert advice on education loans there. Costs associated with a student's MBBS program in India  National Medical Commission (NMC) and Indian Government Authorities are responsible for affiliating and accrediting medical schools and colleges. They carry out inspections of medical colleges and other institutions and establish the rules required to uphold the highest standards and quality of instruction in medicine. The length of the MBBS program is around five and a half years, which includes a one-year Compulsory Rotating Residential Internship (CRRI). In India, there are around 542 medical colleges, 64 of which are PG institutions approved by the NMC.  After MBBS comes MS, a postgraduate program in some specialties like MS/MD/DNB or others. Students have the option to choose their own area of specialization. PG programs in the medical area typically last three years, while diploma programs last two years.  The price of an MBBS program in India may differ from one institution to another. Comparatively speaking, public institutions are less expensive than private ones. The majority of students look into several options to pay for their MBBS program in India. A student loan for MBBS in India is one of the greatest options.  APPLY FOR EDUCATION LOANS FOR MBBS Recommendations for MBBS education loans in India  Let's talk about the sort of education loan that is suggested for MBBS study in India now that we are aware that there are two types of education loans.  NBFCs and private banks offer unsecured student loans. They offer relatively slim chances for MBBS students in India to obtain an education loan. Financial organizations often do not provide student loans for MBBS programs, either abroad or in India. This post will go into further detail on the motivation behind it.  Therefore, in this instance, the only source providing a secured study loan for MBBS in India is government banks. However, students should not solely rely on this since government bank education loans have their own unique set of requirements.  Secured education loans are the best kind to use for an MBBS program in India.  The maximum loan amount for MBBS students: is up to 1.5 crore  1. Details about Secured Education Loan  Student applicants seeking secured student loans must provide collateral in order to be approved. For education loans, various types of collateral security are needed, such as houses, apartments, fixed deposits, government bonds, etc. Government-run banks will also take collateral from third parties, such as your friends, family, uncles, aunts, etc. When students directly approach banks to request an education loan using third-party collateral, bank representatives typically do not prioritize such situations. Overall, this causes the application for student loans to be delayed.  Advantages of securing a student loan  1. Moratorium The repayment holiday is another name for the moratorium period. It is one of the main benefits for students who use government banks to obtain educational loans. In this case, the student is not required to pay the lender anything during the moratorium. Read this article, Benefits of Moratorium Period, for more information.  2. Lower interest rates Compared to NBFCs and private banks, secured education loan interest rates typically range from 8% to 9%. 3. Affordable Processing Fees Government banks charge a fixed processing fee of INR 10,000, which is sometimes refundable.  4. Tax benefit: Section 80E Under Section 80E of the Income Tax Act of 1961, either the loan applicant or the co-applicant may take advantage of the income tax exemption for educational loans.  Conclusion  It follows that obtaining an education loan for MBBS students in India may appear to be an endless process. But if you learn enough about the entire process, it will make getting a student loan a simple process.  TALK TO AN EXPERT

Making financial arrangements and figuring out how to pay for your education plays a decisive role when selecting whether or not to study abroad. Due to financial limitations, several students never even conceive of taking a plane abroad.   The majority of parents even see self-funding as a viable alternative to pay for their child's education by selling off valuable assets or by securing money from friends and family, but not all families are able to do so. Herein lies the role that student loans play. This article will provide you with a quick overview of the advantages of student loans and why they are preferable to using your own money to pay for your international education. You can also contrast student loans with self-funding to determine which is better.  Self-funding your international study  Most students find that taking out an education loan to pay for their studies abroad becomes a financial burden, thus they prefer self-funding as the best alternative to incurring further debt. Students, in one way or another, do not want to be burdened by EMIs when they may pay for everything at once.  What exactly qualifies as self-funding?  In the following cases, you might be regarded as self-funding:  When you are paying for your own studies, requesting financial aid from family, friends, or relatives, and securing funding from an outside source (excluding Government banks or any other education loan lenders). https://www.youtube.com/watch?v=4gTQkdePOWM How can you budget your way through college while paying for it yourself?  1. Budget for travel abroad  Financial planning is crucial for students who want to study abroad because it will help them avoid a lot of hassle and time in the long run. Students should also prepare for any financial emergencies that might arise throughout the course.  2. Find grants and scholarships Look into different grants and scholarships because they might be a big help if you're paying for your education on your own. Overall, this will help you pay for your international education and will be advantageous to your international higher education program.  3. Look for a part-time position Choosing part-time work while you are in school will help you advance financially and professionally. You might take advantage of a chance to hone your abilities and take care of your living expenses while traveling. You wouldn't have any financial burdens while studying abroad if you did it this way. Student loans for international study  Today's students demand superior education because they are more career-focused than ever. With traditional finances, such as borrowing money from family and friends, it would be nearly impossible to pay for your child's complete high-quality education with your years of savings.  When they don't have enough money to cover the high living costs and tuition for an overseas degree, students choose to take out an education loan. One of the main advantages of student loans is this. Varieties of student loans  There are two distinct loan types:  1. Loan with collateral or a secured loan  Secured or collateral loans are those that are granted in exchange for collateral security. The lender will be partially compensated for any outstanding loan debt when a borrower pledges collateral in exchange for a loan. If the payments are not made on time, they have the right to sell the property and seize the collateral. In India, the best sources of collateral loans are government and private banks.  2. Unsecured loans or non-collateral loans  Non-collateral or unsecured loans are those that don't require any form of collateral. In this case, the borrower can get a loan without putting up any security. Unsecured loans are an option for students who lack the assets to provide security. However, when choosing unsecured loans, criteria such as parents' income, university ranking, and fees, among others, are taken into account.  Self-Funding Vs Student loans: Which one is better?  1. Save your personal money to save your family.  To pay for your study abroad, self-funding typically entails liquidating all of your money and precious assets like gold, FDs, insurance, flats, and land, whereas an education loan allows you to keep all of your resources and preserve your collateral with punctual loan payments. Additionally, it would save your family money because they may use it for unforeseen family expenses.  2. Financial advantages  You cannot take advantage of any financial advantages associated with education loans, such as lower interest rates, reasonable payback terms, repayment holidays for students, government subsidies, etc., when paying for your own international education. This is one of the main advantages of taking out an education loan, though.  3. To secure entrance, provide proof of payment When you pay for your own education, the university requests a solvency letter to confirm your enrollment. When applying for an education loan, your bank will provide a solvency letter as proof of money, but students must show the university that they have the equivalent of one year's worth of payments plus 50% more in their accounts.  4. Moratorium period  The main benefit you receive when taking out a student loan from a government bank is a moratorium period. The moratorium period, often known as the course duration plus six months or a year, is essentially a loan repayment holiday during which you are not required to make payments to the bank. In contrast to those who self-fund their education, students who take out an education loan from a government bank have the option of extending their repayment period by up to 15 years.  5. The quick arrangement of big sums of money  When you pay for your own higher education, you must make long-term plans and save money. The biggest disadvantage of self-funding school is that it may be difficult to secure significant sums of money quickly, but if you take out an education loan, the bank will make periodic payments of the needed amount. Therefore, if a student needs to arrange significant finances in a short amount of time, they can do it by requesting further loans for their education against the value of their collateral.  6. Several costs are covered  When you self-fund your education while studying abroad, it can be challenging to manage costs like housing rent, tuition, food, etc.; but, when you take out an education loan, all of your necessary costs, including rent, food, laptops, etc., are included in the loan amount.  7. Changes in exchange rates  When there is a shift in currency rates owing to rising inflation, the cost of education also changes, making it difficult for students to self-fund their education. In contrast, your sanctioned education can be very helpful at this time.  Conclusion  Most of the time, it is advised that students take out an education loan rather than pay for their education themselves because doing so has additional benefits. Students are finding it difficult to secure the cash they need to continue their studies due to the rising inflation. A pandemic, when the nation's economy has been severely impacted and students are struggling to pay for their education, is the ideal time to apply for an education loan. 

One of the biggest financial issues that many students have is solved by getting an education loan. While receiving loan approval lessens the anxiety and worry associated with paying vast sums of money, students are frequently perplexed by the real loan repayment problem. Loan default is not an option because it lowers your credit score. Nevertheless, restructuring the loan is a simple solution to ease the financial load. This can be accomplished by refinancing the student loan, which entails replacing the current loan with a new one. What does refinancing mean? Refinancing student loans is just taking out a new loan at a different interest rate to repay the existing education debt, to put it simply. Refinancing is done to obtain a lower interest rate and further terms and conditions. Refinancing an education loan taken for studying abroad can be a smart financial move. It can lower monthly payments, reduce the overall interest cost and help you simplify the loan repayment process. In this article, we will go over the process of refinancing an abroad education loan and when it might make sense. https://www.youtube.com/watch?v=4gTQkdePOWM Steps to refinance an Abroad education loans 1. Assess your current loan Before refinancing, it's essential to understand the terms and conditions of your existing loan, including the interest rate, loan balance, and remaining duration. This information will help you determine if refinancing is a good option. 2. Shop around for refinancing options  Research different lenders that offer to refinance for abroad education loans. Compare the interest rates, loan terms, and repayment options each lender offers. Consider contacting multiple lenders to compare offers and determine the best option for you. 3. Apply for refinancing Once you have chosen the right refinancing lender, you can begin the application process. The lender will typically require information about your current loan, credit score, and proof of income. 4. Review and approval The lender will review your application and determine your eligibility for refinancing. You'll receive a refinancing offer with the new terms and conditions if approved. Review the offer carefully to ensure it meets your needs and expectations. 5. Sign the refinancing agreement If you accept the refinancing offer, you'll sign a new agreement with the refinancing lender. The new lender will pay off your existing loan and provide you with a new loan. APPLY FOR EDUCATION LOANS Advantages of refinancing an education loan Refinancing an abroad education loan involves paying off your existing loan with a new loan from a different lender. This process can help you take advantage of lower interest rates, better repayment terms, or a more favorable loan structure. Here are some benefits of refinancing an abroad education loan: 1. Lower interest rates  Refinancing your loan when interest rates are lower can significantly reduce the overall cost of your loan. A lower interest rate means you'll pay less over the life of the loan, potentially saving you thousands of dollars in interest payments. 2. Better repayment terms Refinancing can also allow you to select better repayment terms, such as a longer loan term, which can lower your monthly payment and make it easier to manage your finances. 3. Improved credit score  If your credit score has improved since taking out your original loan, you may qualify for a lower interest rate when refinancing. This can result in substantial savings over the life of the loan. 4. Simplified repayment process  Refinancing multiple loans into one loan can simplify the repayment process and make it easier to manage your finances. You'll only have to make one monthly payment instead of multiple payments to multiple lenders. In addition to these benefits, refinancing an abroad education loan may allow you to switch from a variable-rate loan to a fixed-rate loan. This can provide peace of mind, as your interest rate will remain the same over the loan's life, regardless of market changes. When considering refinancing, weighing the potential benefits against any costs associated with the process is important. Some lenders may charge fees for refinancing, so review the terms and conditions of any refinancing offer before making a decision. Consult an expert advisor to get the right plan TALK TO AN EXPERT

When you decide to study abroad, an education loan is one of the most critical factors. A study loan can be your savior because of the growing cost of higher education today. It will assist you with all of your financial demands throughout your course.   However, numerous requirements must be met before you can apply for the loan, and your CIBIL score is the most important one. There is a clear connection between your CIBIL score and the school loan, and it is accurate to say that your credit score can make or break your ability to obtain a student loan.  What is a CIBIL Credit Score?  The first credit information company in India is CIBIL (Credit Information Bureau (India) Limited). Every month, CIBIL must receive credit card payments and loan histories from every national bank and financial institution. CIBIL then produces the Credit Score after collecting and maintaining the Credit Information Report (CIR).   A three-digit figure called a CIBIL Score can range from 300 to 900. This figure, which determines your creditworthiness based on the data in your CIR, is calculated.   Lenders use this rating to assess your loan application. A higher score shows that you are more likely to repay the loan on time, decreasing the likelihood of missing a payment and making you a less hazardous borrower.   As a result, it raises your chances of receiving a loan. A lower score indicates that you are a riskier borrower who is less likely to make timely loan repayments and more likely to experience credit default. As a result, it decreases your chances of obtaining credit. The CIBIL Score: How is it Calculated?  The CIR report and six months' worth of past financial data are used to inform how the CIBIL algorithm determines the CIBIL credit score based on 258 different factors with varying weights. Some aspects of your financial credit history assess your score.  Factors affecting CIBIL Score Various things influence your CIBIL credit score, including your repayment history. Most of your credit score reflects how quickly you have paid off your debt. Any missed credit card payments or unpaid loans will harm the CIBIL score.   Credit Utilization Limit: Going above your credit limit has a negative impact on your CIBIL score. It reveals bad financial practices.   Duration of Credit Use: In plain English, this refers to the total years the credit account has been active. The lender can decide on the loan application more quickly if the applicant has a long and solid credit history.   Only Paying the Minimum Amount Owed: You have a much higher chance of getting trapped in debt if you make minimum monthly payments. The leftover balance will continue to accrue interest. Additionally, it casts a negative light on repayment behavior.   Credit Mix: A balanced mix of secured and unsecured credit is crucial. Lenders see it favorably since it demonstrates that you have experience managing both types of credit. Additionally, having just one sort of credit can harm your credit score. CIBIL score required to apply for an Education Loan  The CIBIL score of the applicant and co-applicant is one of the most important variables in an education loan. The score may fall between 1 and 999. However, a CIBIL score of 750 or higher is optimal for obtaining a degree. Loan acceptance can be difficult for applicants with CIBIL scores under 600.  How will your CIBIL Score affect your student loan?  According to statistics, 90% of loans are typically given to applicants with scores above 750. Student loans are no exception to the rule that your credit score boosts your chances of getting approved for a loan. Possessing a high credit score has several benefits that include:  The lower interest rate  Faster clearance with less paperwork  Increased loan amount  Increased card limit  A longer-term  The majority of students may have yet to use a credit card or loan; therefore, they lack a credit history. In these situations, the lender investigates the credit history of the guarantors, typically the borrower's parents, when the borrower applies for an education loan. Therefore, there is a strong likelihood that the loan will be rejected if the parents have a low CIBIL score.  How may your CIBIL score be raised?  These are the steps you can take to increase your credit score.  To qualify for a student loan and gain access to a prestigious institution for further study, you must have a high CIBIL score. If you examine your credit score and execute the correction mentioned above, you can immediately raise your CIBIL score and quickly and affordably apply for an education loan. Also, there are education financing websites like GyanDhan, which are expressly made to enable students to avail of education loans irrespective of their CIBIL score and can help them pursue their study abroad.  Regularly check your CIR and CIBIL scores - The first step is to periodically check your CIR and credit score on the CIBIL website. Even though you haven't defaulted, your CIR may occasionally show a problem due to a technological or bank error. If you have a good argument, you should immediately contact CIBIL to report the problem and have it fixed.   Pay down the debt promptly. Failure to make payments on time and defaults have a negative impact on your credit score. Make all of your payments accordingly and on schedule. You'll get a better grade as a result.   Avoid serving as a guarantor for someone who is less creditworthy because it will lower your CIBIL score if they default.   Prefer a variety of credit - You should use a variety of credit, with secured loans making up a larger portion of the mix than unsecured loans.   Don't use all of your credit cards at once - Don't use all of your credit cards at once. Using at most 40 to 50 percent of your credit limit is best.   Loans with Collateral If you have a low credit score, having a good piece of property as Collateral may assist you in getting your loan authorized. Some banks will also accept loan protection policies as Collateral.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Families should know how they can use scholarships, grants, and other forms of financial aid to reduce the amount of abroad education loan debt they have taken so that the pressure to repay the loan diminishes to a certain extent.  These are challenging times for students and their parents regarding education costs, especially if the child wants to pursue a study course in an overseas college. Although most families in these circumstances have to take out an abroad education loan, they can get the help of generous financial aid that can later reduce the amount of the loan debt. What are the different Financial Aids available to Students? Financial aid refers to the funding that does not come from a student's or his family's personal savings and earnings. It includes scholarships, grants, and work-study jobs from community organizations, high schools, colleges, state agencies, corporations, foundations, etc. 1. Grants Grants are financial aid given by a government, foundation, or company to a student to felicitate a specific goal, such as funding overseas education. Grants are monetary awards or gifts based on financial need and generally do not have to be paid back.  2. Scholarships Scholarships are similar to grants in terms of repayment because you do not have to pay them back. Scholarships, however, are based on several factors besides financial need, which is undoubtedly an important reason.  Scholarship eligibility, in most cases, is based on the goal or objective of the individual or the entity funding this monetary reward. Most student-related scholarship programs look for a strong academic record, specific artistic skills, career goals, sports prowess, ethnic background, entrepreneurial interests, and voluntary experience.  The Indian government provides financial aid through scholarships to interested candidates who want to study abroad. Check the official website to know whether you qualify for the scholarship program and how much money this financial aid will offer. 3. Work-study Programs / Student Employment All students can work reasonable hours during their academic year, irrespective of their financial background. They have to take prior permission and inform the universities beforehand.  Work-study Program is a type of financial aid that helps students to get a job on campus or college-sponsored jobs. It is a need-based financial help that allows students to earn additional money.  All the wages earned are paid directly to the students, which they can use for any additional or personal expenses.  4. Banks, Universities, Private Organizations, or Non-Profits Financial institutions, private institutions or non-profits, and the universities where the student has applied for the study course also offer scholarships and grants to students who have done exceptionally well or need additional monetary support.  Important scholarship funds attached to prominent universities are in the form of federal and state grants, endowment funds, and gifts from alums. There are also scholarship programs established by generous donors and alumni for students who are doing exceptionally well in specific fields of study or sports etc. How to use Financial aid alternatives to reduce loan debt amount? Students should keep on making inquiries about the various financial aid that they are eligible for and visit the websites of both private and government organizations along with the university they want to study.  Grants are a kind of free money without any strings attached, whereas scholarships might be merit-based, and the students would have to fulfill the terms of the set criteria. Both of them can be applied towards academic bills like tuition money and study materials etc. so that the student has to use considerably less loan amount.  The student often uses the work-study amount for additional expenses that need to be covered, like study tours, food expenses, or travel costs. A student can spend this money on things he deems fit.  Once the student becomes eligible for financial aid and is offered a monetary reward, he should inform the loan officer about the money. Both need-based and merit-based aid given to the student will go a long way in reducing the actual amount that must be paid as the abroad loan debt.  Conclusion Hope this blog answers your queries about how to reduce the abroad education loan debt with help of scholarships, grants, and other forms of financial aid.  Counselors at the Edufund App offer expert advice that can prove a blessing in managing the loan debt by getting access to the necessary financial aid and thus minimizing the actual loan amount that has to be paid eventually. Consult an expert advisor to get the right plan TALK TO AN EXPERT

As more and more individuals move out, earning a degree from an international university may sound fancy and appear aspirational, but there are expenses associated with it, and handling them is not always easy. Although obtaining student loans is now quite simple, statistics suggest that few people appear to be aware of this. Although more students are traveling to study abroad, there are also more defaulted student loans. The Indian Banks' Association said that as of March 2018, there were around 9% more education loan defaults than there were in March 2016 (7.3%).   Data from the Mumbai-based credit agency CRIF High Mark reveals a rise in the average amount of new loans disbursed annually. The average ticket size for new student loans as of September 2018 was $8,95,000 compared to $7,08,000 at the end of FY18. "Indian demographics favor youth and high academic achievement, which boosts employability. Due to rising educational costs, the majority of students need loans.   The number of students who can obtain employment based on non-immigrant visas for temporary workers is capped under the new H1B visa laws in the US, which is one of the factors contributing to the shrinking of the ability to repay loans. Each fiscal year, there is a cap of up to 65,000 visas, with an additional 20,000 visas reserved for those who have obtained their master's degree from a US university. However, a much bigger number of people apply for the H1B visa. 236,000 applications were received by US Citizenship and Immigration Services (USCIS) in FY17.   Thus, the student's employability has greater significance. The student and the guarantor can experience more financial strain if that market slows down. How to avoid the negative long-term consequences of education loans?  1. Avoid Purchasing a Home  One's capacity to buy a home is severely impacted by student loan debt. In a 2015 survey by Equifax, 55.7% of millennial renters cited "school loan debt/not enough money saved" as their main deterrent to home ownership. Even if you have the ability to make the required monthly payments, paying down student debts may prohibit you from setting aside enough money for the minimum down payment needed by many lenders.  2. Live and work at Home  While some renters cannot afford to buy a home, other millennials with student loan debt, particularly those who reside in large cities like New York, Chicago, or Boston, cannot even afford to rent apartments.   According to Apartment Guide, the national average rent for a one-bedroom apartment in the US will rise from $1,596 in 2019 to $1,621 in 2020. When you have a student loan debt of approximately $30,000, that might be pretty difficult to pay. Many of these young adults choose to stay in the nest since their income is insufficient to cover their rent and school debt repayment.  3. Bringing Down Your Net Worth  Significant student loan debt can undoubtedly lower your overall net worth. There are differences between college graduates with and without student loan debt, according to a 2014 Pew Research Center analysis. A household led by a college graduate under the age of 40 who has student loan debt had a median net worth of $8,700. On the other hand, the median net worth of a household with a college graduate under 40 and no student loan debt is seven times higher, coming in at $64,700.  4. Postpone your dreams  Your standard of life and financial independence aren't the only things that are impacted by student loan debt. It also decides which of your dreams you can pursue and which ones will only serve as a faint recollection. You can find yourself forgoing a career with better compensation for one that provides you with a greater sense of fulfillment and purpose.   For instance, you might aspire to work for a charitable organization. But if you find out that the money that comes with it could not be enough to cover your financial commitments, you might have to give that up. In reality, you'll have to give up on these goals in favor of a higher-paying position so you can make your student loan payments.  5. Student loan debt persists Debt from student loans is distinct from other forms of debt. For instance, if a customer can't afford auto payments, they can return the vehicle to the dealer, and if a homeowner can't make their mortgage payments, they can return the keys to the bank. Your student loans are not subject to that rule. Nothing is left to return when you complete the student loan repayment process. Whether you used the money for education or not, it has already been spent.  Conclusion  More students are taking out education loans to pay for their education. It's crucial to understand the repercussions of borrowing money and to be self-disciplined enough to borrow what is necessary before even considering taking out a loan. Make cautious arrangements to repay your loans when you borrow, making sure to account for the earnings you can anticipate after graduation in the sectors that interest you.  TALK TO AN EXPERT

For students looking to study abroad, the UK is the ideal location. India ranks as the second-highest nation of origin for students at UK higher education institutions. If you are an aspiring student planning to study in the UK but are concerned about the expense of attending a UK university, this blog will help you understand how an education loan may help you. An education loan for a course in the UK is one of the most popular options among the different forms of financial help offered to overseas students.  How does one apply for a student loan in the UK?  You can now get a study loan for the UK with low-interest rates, flexible payment schedules, a simple application process, few documentation needs, and quick approval. To learn about interest rates, repayment options, and loan amounts and to create a budget for the expense of studying in the UK, all you need to do is contact the loan providers.  Explore this page to learn more about the cost of studying in the UK, the prerequisites for student loans in the UK, the costs that are covered by the loans, repayment, loans for Indian students studying in the UK, etc.  https://www.youtube.com/watch?v=4gTQkdePOWM Why would you need a UK student loan?  If you have decided to study abroad in the UK, you should be aware that it is one of the most expensive countries. The entire price includes university tuition fees, cost of living factors like lodging, food, transportation, health care charges, and other expenses. One could feel financially constricted with so many expenses.  The following are some of the main justifications for choosing student loans in the UK:  Interest rates on any loan, including home loans, auto loans, personal loans, and others, are frequently higher than those on student loans. Additionally, female borrowers receive a 0.5% discount from all Government banks.  A student loan in the UK will pay for your tuition, transportation (tickets), housing rent, university fees, food expenses, living expenses, laptop, and any other item necessary for your studies.  Usually, parents sell off sizable amounts of assets to pay for their children's education in the UK, which throws off their long-term financial goals. When you take out an education loan, however, banks hold your liquid assets, such FDs, insurance, and government bonds, as collateral and issue you a loan based on that security.  A student loan for the UK is one of the effective options to pay for all of your expenses promptly and safely while still meeting visa and admission standards.  But how can I apply for an international student loan in the UK? Let's look at the eligibility and prerequisites for UK student loan applications.  Criteria and conditions for obtaining a Student Loan in the UK  Let's look at the qualifications for loans for Indian students studying in the UK before delving into the procedure of obtaining one:  The candidate must be an Indian citizen.  The applicant's age at the time of loan application should fall between 18 and 35.  They must have received official word of admission to a reputable UK institution.  There must be a co-applicant, who may be a parent or spouse.  Co-applicants must have a reliable source of income.  What paperwork is necessary to obtain a student loan?  If you wish to apply for a study loan in the UK, the following documentation is required to support your loan application:  Bank loan application form for education.  Proof of enrollment.  An Aadhar card, voter ID, passport, or driver's license, serves as identification.  Examples of address documentation include bank statements, rental agreements, ration cards, utility bills, and phone bills.  Age verification documents include an Aadhar card, voter ID, driver's license, and passport.  Passport-size photos.  When requesting a loan, proof of income in the form of pay stubs is required.  Financial records  Recent exam results, such as higher secondary exams or graduation results, are on mark sheets.  A copy of any award letter.  A thorough breakdown of the costs involved in taking your selected course.  Statement of the borrower's bank account.   The assets and liabilities of the co-borrower are listed.  APPLY FOR EDUCATION LOAN How can Indian students get a Loan in the UK?  The answer is a resounding yes if you're asking whether or not loans for Indian students are available in the UK. You can borrow money to pay for tuition and living expenses at UK institutions. The university, course, age, nationality, and whether you've taken higher education courses all affect your eligibility for student financial aid. Here are the procedures to follow when requesting a student loan in the UK:  For a student loan in the UK, you can apply online.  You can apply for financial aid through an education loan to study in the UK for up to nine months after the start of your academic degree.  Processing of your application could take up to six weeks.  You must provide identification evidence.  Once you start making a consistent paycheck, you can pay off these loans.  Your monthly income will also affect how many and how many installments you will receive each month.  Types of student loans for the UK  Let's look at the two major forms of loans available to Indian students in the UK:  Collateral Education Loan: A secured education loan in the UK or a loan for which you must offer security or collateral in order to be approved. Real estate or fixed assets like FDs are examples of securities that can be either material or immaterial.  Non-Collateral Education Loan: You do not need to present any collateral in order to apply for an unsecured education loan in the UK.  Additionally, the table below details the main distinctions between these two loans: Secured Loan Unsecured Loan The bank requires collateral security to provide such a loan. There is no need for collateral to avail of this type of UK education loan for international students. Helps you get a loan of up to 1.5 crores Helps you get a loan of up to 750,000 INR for the UK The rate of interest is usually lower The rate of interest is usually higher  What Indian banks offer student loans to UK citizens?  Bank Name Maximum Amount of Loan (in INR) Interest Rate State Bank of India 1,50,00,000 10.50% Bank of India 40,00,000 8.95-9.75% Bank of Baroda 1,50,00,000 8.50-9.15% Central Bank of India 20,00,000 8.65-10.60% Allahabad Bank 50,00,000 7.15-10.05% Punjab National Bank Determined on the basis of need 8.90% HDFC Bank 30,00,000 14% ICICI 1,00,00,000 10.50-13% Axis Bank 75,00,000 INR 13.70-15.20%  What costs in the UK Are Covered by Student Loans?  Look at the costs paid by student loans in the UK:  Payments due to the institution  Fees for exams, library memberships, and lab services  Expenses for the books and supplies required to finish the course  Refundable reservation deposits, cautionary deposits, etc.  The cost of travel to study abroad  Up to 50,000 INR was spent on a two-wheeler.  Costs associated with a research trip or a project for the class  It is expensive to pursue a degree in one of the top study-abroad countries, such as the UK. Instead of delaying your decision to study in the UK, it is wise to take out an education loan for the UK. Hope you learned about the prerequisites, eligibility, and application process for student loans in the UK from the aforementioned guide. TALK TO AN EXPERT

Planning to apply abroad and stressed about your education loan application? Keep reading to find out the difference between private vs government-backed education loans for abroad.   Education loans offered by private vs government-backed banks differ in interest rates, moratorium periods, processing costs, and payout, are different.  Government banks are those where the government itself holds the majority of the bank's stock, as opposed to private banks, where the majority of shares are held by shareholders. State Bank of India, Bank of Baroda, Bank of India, and the Central Bank of India is the government banks whereas ICICI Bank, Axis Bank, and HDFC Bank fall in the category of private banks. Government banks vs. private banks  Quantum of Finance: Secured education loans and unsecured education loans are the two main divisions of overseas student loans. Government banks like SBI and BOB can provide up to 1.5 Crore in financing for secured education loans, but private banks like Axis Bank and ICICI Bank can provide financing ranging from 75 lakhs to 1 Cr. The amount of funding for unsecured overseas education loans is up to 7.5 lakhs for government banks and up to 40 lakhs for private banks.  Rate of Interest: Both public and private banks have different rates of interest. Private banks have a higher return on investment than government banks. The interest rates offered by the State Bank of India and Bank of Baroda for loans for international education are 8.5% to 9.5%. For secured education loans from private banks like Axis Bank and ICICI Bank, the interest rate ranges from 9% to 10%, and for unsecured education loans from 11% to 13%.  Processing Time: Government banks process loans for international education in up to three weeks, whilst private banks process loans in up to ten days. This is one of the reasons we suggest applicants apply for international student loans at least three months before the program's start date.  Processing Fees: Compared to government banks like SBI, BOB, BOI, etc., the processing fees levied by private banks like ICICI Bank and Axis Bank are greater. To be precise, processing fees charged by government banks are 10,000 + GST, whereas fees charged by commercial banks might reach 1% of the total amount of the student loan.  Disbursement: The sum of the education loan is disbursed to the appropriate university's bank account by both public and private banks. These banks send the money into the currency card that is issued by the same institution that provided the loan in order to pay for living expenses.  Repayment Tenure: This refers to the length of time that the applicant has to pay back the financial institution for the student loan in Equated Monthly Instalments (EMIs). After the moratorium period is up, the education loan EMIs start. Government and private banks both provide up to 15 years for repayment.  Moratorium period: The moratorium period is the portion of the loan term during which the applicant for an international education loan is exempt from making any loan payments to the financial institution. In other words, lending institutions provide students with a waiting time of between 6 and 12 months. For government banks, the moratorium term is up to 12 months, whereas it is up to 6 months for private banks.  Serving Simple Interest: After an overseas education loan has been disbursed, serving Simple Interest for government banks is optional, however serving Simple Interest for private banks is required.  Age Restrictions: Applicants between the ages of 18 and 35 are eligible for loans from both public and private banks for international education. To qualify for an education loan from these banks, applicants over 35 must have a solid academic and financial background.  Tax Benefits: Under section 80E, financial institutions of both the private and public sectors are qualified to receive tax benefits.  Conclusion These are some of the key factors that should be taken into account when selecting an appropriate financial institution for an education loan for studying abroad. Both public and private banks have advantages and disadvantages.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Every year, schools increase their annual fees in India. The average school fees in India range between Rs. 50,000 to 1,00,000 per annum. The increase in response to the rising cost of all goods and services (that is the result of education inflation!). It’s tough to keep up with these costs, especially in a competitive world where your child deserves all the advantages they can amass. Since education is unavoidable and an integral aspect of a child’s development, here are some tips to save for your child’s school fees. 5 ways to save for your kid's dream college! https://www.youtube.com/shorts/N6RKPu_zoY8 1. Cut costs and budget Cost cutting and budgeting is the first step to saving. Create a monthly budget, and find out how much you need to cover your major expenses like rent, utilities, emails, travel, and food. Once you know where your money is going, you will be able to control your expenses and figure out the areas where you overspend and where you can cut costs! Removing small expenses from your budget can make a huge difference in your overall budget. Cost of School Education in India Read More 2. Government schemes and scholarships Another way to deal with the rising school fees is to make use of government scholarships and schemes. Schemes like the PM Young Achievers Scholarship Award Scheme (Yasasvi), Beti Bachao Beti Padhao schemes, and Girls Hostel Scheme for available for young children and encourage them to access quality education. There are other schemes like sibling discounts that private schools may offer if you enroll more than one child at their schools, this can either be in the form of fee waivers or concessions. Apply for Scholarships 3. Passive income Creating passive income is a great way to save up for your child’s school fees. Passive incomes can help you take care of small and big expenses Some quick ways to generate a passive income stream is by renting a spare room, apartment floor, or your car. Take up consultancy jobs or freelancing to create a secondary income that can over time become a passive income for you and your family. 4. Stocks: Indian and US Investing is another option for parents whose children are in school. Investing in stocks can help you expand your savings and beat inflation. Investing in us stocks offers even more benefits – it is an opportunity to invest in big companies with global reach and get returns in dollars. Stocks are risky instruments and the potential to gain is as high as loss – understand the risk and consult professionals before investing your life savings. 5. Mutual Funds Mutual funds are a great way to save up for the future education is a definite event and you need to save for a child’s fees. Mutual funds offer great returns and are highly liquid-able which means you can withdraw your money whenever you want but be aware of the exit fees that may be charged on premature exit. Consult a professional to find out the best mutual funds, and explain your time horizon, risk appetite, and how much you can spare monthly. Once you know these answers, you can invest in the funds based on your financial goals! Start Investing in Mutual Funds 6. Public provident funds It's always good to balance your portfolio. If you are investing in risky instruments then consider tools like PPF, FDs, or RDs to save up some school fees or other expenses. You can use the interest generated on these instruments to pay for certain expenses. These are risk-free investments with fixed interest rates which makes them ideal for long-term risk-averse individuals! To avoid financial worries later, start saving sooner! Connect with the best advisors from EduFund to make saving and investing easier for your child’s higher education. https://www.youtube.com/watch?v=OQlg-E5rhBM&t=4s FAQs How to save for your kid's school fees? There are many ways to save for your kid's school fees. Some of them are investing for your child's education expenses, you can use mutual funds, US stocks, and Indian stocks, and even opt for FDs and PPF schemes. Another is to look for schemes and scholarships that can help you reduce the cost of studying at schools and colleges. Why are school fees increasing rapidly? The reason why school fees are rising is due to education inflation, privatization, lack of government control, demand for private schools, and high competition. As Ashneer Grover said, the demand for coveted schools is higher than the current supply, which gives existing schools an advantage in terms of raising their fees and demanding high annual tuition every year. What is the best way to save for your child's school? The best way is to start a SIP in a mutual fund that can help you manage the costs of your child's education. EduFund offers class-wise buckets for saving for school fees. So if your child is in 5th grade and you want to invest then you can choose the 5th grade investment bucket designed by experts and start saving.