Tag Archives: financial literacy

Post-pandemic online master’s degrees have become extremely popular. If you have applied for an online degree and are finding it hard to pay the fees, then here are some merits and demerits of opting for a personal loan for an online master’s degree!  From top universities like Harvard University, Oxford University, the University of Edinburgh, and Johns Hopkins University to online platforms like Coursera and SkillShare made accessibility to quality education easier and a great way to upskill. While some are free, there are some that charge a heavy fee. Depending upon the course, the average cost of an online master’s degree can go up to $29,000 (Rs. 23-24 lakhs).   This can be tough to finance independently as most banks do not offer education loans are not offered for online degrees. Some banks like Axis Bank do offer education loans for an online master’s degree. But space is still limited. Maximum banks and financial institutions only sanction education loans that require students to study on campus, and online degrees are not covered by them. Thus, if you are short on expenses, then you can opt for a personal loan for your online master's degree.   What are the merits of opting for a personal loan for online master’s degrees?  1. Zero Collateral   Personal loans are called unsecured loans and they do not require collateral from the borrower to sanction their claims. It is easier to get a personal loan as banks do not need you to give land, shares, or other bonds as collateral to claim. The approval largely depends on your credit scores, income history, and general eligibility or worthiness in terms of repayment. If the bank feels that you are not capable of repaying the loan, they are likely to reject the application.   2. Easy Sanctions  Personal loans verify the candidate’s worthiness, credit history, and financial stability. If you can provide an assurance to the bank that you are able and willing to repay then the banks are likely to sanction your loan faster. In terms of personal loans without collateral, your relationship with the bank, income stability, and financial background comes in handy for easy sanctions.   3. Easy Disbursals  Some banks disburse funds within seconds! Once your loan is approved and accepted, the banks can wire the money to your account immediately. Most personal loans and their lenders pride themselves on immediate and easy disbursements so that the borrower can finance their immediate needs faster. It may not be the case for all types of loans as each has its own processing period.   What are the demerits of opting for a personal loan for online master’s degrees?  https://www.youtube.com/watch?v=4gTQkdePOWM 4. High-Interest Rates  Interest rates vary from bank to bank and to lender. Personal loans are by nature unsecured which means the chances of getting a high-interest rate may be higher. Beware of the interest rates, try to consult multiple banks before starting the application process. Having a good relationship with a bank and a financial history can help you.  5. Stress of Repayment   The stress of repayment is associated with every loan and is not exclusive to personal loans. Most borrowers struggle with repayment and may find it overwhelming at times. Having a stable income or savings that can help you with the process of repayment. The cumulative interest rates and rising prices can make the job tougher but not impossible.  6. Eligibility Rigidity  Since most personal loans are unsecured, they focus largely on your credit score and financial history to sanction it. This can be a merit and demerit because a low credit score could jeopardize your application approval and make it tougher for you to gain the amount you want. Applicants are scrutinized more closely and any flaw could delay the process.    These are some merits and demerits of opting for a personal loan for an online master’s degree! An informed and well-rounded decision can help you pick the right path and help you secure a brighter future. Consult an expert advisor to get the right plan TALK TO AN EXPERT

The simplest and straightforward answer to that question would be - Offshore Funds are open-ended investment schemes that invest in mutual funds, stocks, real estate assets, equities, fixed income securities, etc. in the overseas market.  Understanding Offshore funds Offshore funds are often referred to as international funds or foreign funds as they are based on offshore locations and have non-residents as investors. These types of funds provide investment exposure to global markets but they have to comply with the rules and regulations of that country. In India, both Indian residents and NRIs can invest in offshore funds either directly or through other funds under the purview of SEBI and RBI guidelines. The fund house has to comply with the set provisions and guidelines of the foreign country where they are registered. The Indian resident can invest only in Indian currency just like any other investment scheme.  You can: Select the offshore fund, Write a cheque for the amount due, Submit the cheque along with the application form to the fund house or online app you are applying through. Types of Offshore Funds “What are offshore funds?” is one of the most common queries of investors. In simple terms, it refers to investments that exist and operate abroad.  The different types of offshore fund schemes are -  Theme-based (real-estate, power, energy, agriculture etc.)  Region-specific (Asia, Europe etc.), and  Country-specific funds (USA, India, UK, Australia etc.). Additional read: What are international funds? Advantages of investing in Offshore Funds Investors can diversify their funds across geographical boundaries and choose the best available location for investing purposes. It is a golden opportunity to invest in global brands and business houses. The exchange rate difference will yield higher returns. Sometimes, the home economy is not so great but another country might be facing an economic boom. Investing in offshore funds will garner higher returns on investments at such times. Offshore funds are globally incorporated with lower regulation levels. As the income is tax-free it is profitable to reinvest the investment gains.  The operating costs and management fees associated with offshore funds are comparatively lower and financially beneficial. Offshore funds can safeguard the capital from the burden of high taxes in the home country Disadvantages of investing in Offshore Funds Offshore funds require higher investments, which every investor cannot afford. If the offshore currency is facing a downward trend then it will lead to lower returns. The risk factor associated is greater compared to domestic investments. Investors have to trust the foreign fund houses to explain the terms and conditions. In case of any discrepancy or fraud, it can result in a loss of capital. Tax laws, economic policies, and market fluctuations of both the home country and the foreign country will harm the returns. Things to consider before investing in Offshore funds Research the economic and political conditions of the foreign country where you want to invest. Start with a small investment and gradually increase the investment.  Opt for financially stable investment funds at the onset. Check the fund reputation, the background of the fund house, and historical returns thoroughly. Choose funds that will help to cash in global opportunities. Consider the currency risk while dealing in international funds. Any currency fluctuation will impact the Net Asset Value of the fund directly because if the value of the rupee depreciates against the dollar NAV will be higher and in case it appreciates earnings will become less. Invest in developed and emerging markets only. Choose long-term investment as it is considered best for minimizing the impact of inflation. Foreign funds are treated under debt thus taxes are levied as per the tax rules in the home country. In India, residents have to pay tax on overall income even if it was generated in a foreign country.  Invest in funds with utmost security and transparency in the transaction process. Challenges associated with Offshore funds in India The RBI and SEBI guidelines do not allow fund managers based in India to manage offshore funds. The investment inflows to India are now managed by offshore authorities and this poses a serious challenge to the growth of offshore funds in India. According to new guidelines REITs and AIFs are allowed to receive investments from foreign investors.  Conclusion By now the concept of what are offshore funds will be clear and you must have realized that these funds follow a different path in terms of rules and regulations compared to the standard investment journey.  It is imperative to sound a word of caution for investors of offshore funds as these are prone to fraud and high risk quite often because of relaxed regulations. Beware and take the help of reputed platforms like EduFund App which will act as a guiding tool in securing safe transactions in overseas markets. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT