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The United Kingdom has been one of the preferred global destinations for Indian parents who want to send their children abroad for higher education.  The thought is exciting enough as it opens new doors of opportunity for a flourishing career but it requires a considerable sum of money that every parent cannot afford. Education, especially higher education in foreign countries like the UK, is revered in India, no doubt. But it is a fact that every Indian parent cannot afford to send his child abroad without an appropriate loan. Knowing about the education loan process for the UK must be a priority for a parent as it will help in fulfilling their children’s dreams to a great extent. https://www.youtube.com/watch?v=sRiktJ_KLmo Cost to study in the UK   Studying in the UK entails various costs, including tuition fees, accommodation, living expenses, and study materials. Tuition fees differ based on the university and program, with undergraduate fees ranging from £10,000 to £38,000 per year for international students. Postgraduate fees can vary similarly. Accommodation expenses vary by city and housing type, with average rents ranging from £800 to £2,000 per month. Additional living costs, such as food, transportation, and utilities, might average around £700 to £1,000 per month. Scholarships can help offset these expenses. It's crucial to budget for visa fees, health insurance, and potential travel costs. Researching scholarships, part-time job opportunities, and efficient budgeting strategies can make studying in the UK financially manageable.  Documents required for Education Loan Approval:  Applying for an education loan to study in the UK is a significant step towards realizing your academic aspirations. To ensure a smooth loan approval process, it's essential to provide the necessary documents that demonstrate your eligibility and commitment to your education journey. The documents required typically include:  Admission Letter: A formal confirmation of your acceptance into a recognized educational institution in the UK is a crucial document that validates your need for financial support.  Cost Estimate: Present a detailed breakdown of the anticipated costs of your education, including tuition fees, accommodation expenses, living costs, study materials, and travel expenses. This estimate will guide the lender in determining the loan amount.  Academic Records: Submit copies of your academic transcripts, certificates, and standardized test scores, such as IELTS or TOEFL results. These documents showcase your academic prowess and your commitment to your studies.  Collateral Documents: If you're applying for a secured education loan, provide relevant collateral documents. These might include property papers or certificates of fixed deposits that demonstrate your capacity to secure the loan with valuable assets.  Proof of Identity: Present a valid passport, Aadhar card, or any other government-issued identification document to establish your identity.  Proof of Address: Furnish documents that verify your residential address. This could include utility bills, rental agreements, or any other official documents.  Income Proof: Showcase your parents' or co-borrowers income stability and capacity to support your education. This might involve salary slips, income tax returns, or business-related documents.  Co-borrower Documents: If you're including a co-borrower, such as a parent or guardian, provide their identity and address proofs, as well as income-related documents.  Letter of Admission: A critical piece of evidence that affirms your intention to study in the UK. This document outlines the course details, duration, and starting date.  Types of Education Loans for the UK:  When pursuing an education loan to study in the UK, you'll typically encounter two primary types: secured education loans and unsecured education loans.  Secured Education Loan: This type of loan requires you to offer collateral, which could be property, fixed deposits, or other valuable assets. For the lender, the collateral serves as security, lowering their risk. In return for this security, secured loans often come with lower interest rates compared to unsecured loans.  Unsecured Education Loan: Unsecured loans do not require collateral. These loans are based on your creditworthiness, academic performance, and the financial stability of your co-borrower. While they provide a valuable avenue for those without significant assets, unsecured loans usually come with higher interest rates to compensate for the increased risk borne by the lender.  Expenses Covered in Education Loan for the UK Education loans for the UK are designed to comprehensively cover the various expenses associated with pursuing higher education overseas. These expenses typically include:  Tuition Fees: The loan covers the tuition fees required for the chosen course of study.  Accommodation Expenses: The loan encompasses accommodation costs, including rent and related charges.  Living Costs: This includes day-to-day expenses such as food, transportation, study materials, and personal needs.  Travel Expenses: The loan can cover travel costs related to your journey to and from the UK.  Insurance Fees: Comprehensive health insurance is essential when studying abroad, and education loans often account for these costs.  It's essential to have a clear understanding of what expenses your education loan covers. This knowledge will allow you to plan your finances effectively and avoid unexpected financial burdens.  Eligibility for Education Loan for the UK While eligibility criteria can vary among lenders, certain common factors determine whether you qualify for an education loan to study in the UK. These typically include:  Indian Citizenship: You need to be an Indian citizen to be eligible for most education loans.  Admission Confirmation: You must secure admission into a recognized educational institution in the UK.  Co-borrower Requirement: Education loans usually require a co-borrower, often a parent or guardian, who demonstrates the ability to repay the loan in case you face difficulties.  Academic Performance: Lenders often consider your academic performance as an indicator of your commitment to your studies.  Financial Stability: The financial capacity of your co-borrower to repay the loan is a crucial factor in the approval process.  Education Loan Documents Required for the UK When applying for an education loan to study in the UK, the following documents are commonly required:  Completely fill out the application form that the lender provides.  Admission Letter: A formal letter of admission from your chosen UK educational institution.  Cost Estimate: An estimate of the total expenses involved in your education, including tuition, living costs, and other related expenses.  Academic Records: Copies of your academic transcripts, certificates, and standardized test scores like IELTS or TOEFL.  Collateral Documents: If applying for a secured loan, provide relevant collateral documents.  Income Proof: Documents that establish the income stability of your co-borrower, such as salary slips or income tax returns.  Proof of Identity: A valid passport, Aadhar card, or other government-issued ID.  Documents that attest to your residential address serve as proof of address.  How to Make a UK Student Loan Application:  Acquiring an education loan for studying in the UK involves a structured process:  Research: Begin by researching the various lenders that offer education loans for studying in the UK. Compare the terms, interest rates, and qualifying requirements of each.   Application: Once you've selected a lender, complete their application form and gather the necessary documents.  Document Submission: Submit the application form along with the required documents to the lender's designated branch or online portal.  Loan Approval: The lender will review your application and documents to assess your eligibility and creditworthiness.  Loan Sanction: Upon approval, the lender will issue a sanction letter outlining the loan amount, terms, and conditions.  Repayment of Education Loan Repaying your education loan is a significant responsibility that begins after the completion of your course or after a predetermined grace period. The repayment term varies, typically ranging from 5 to 15 years, depending on the loan amount and terms. It's essential to factor in your post-education financial situation and choose a repayment plan that aligns with your capacity to repay. How to Choose the Best Lender? Selecting the right lender for your education loan significantly impacts your financial journey. Here is some advice on how to choose wisely:  Interest Rates: Compare the interest rates offered by various lenders and opt for one with competitive rates.  Loan Amount: Ensure that the lender covers the full extent of your education-related expenses.  Repayment Terms: Evaluate the flexibility of repayment terms and choose a lender with options that suit your financial situation.  Processing Time: Opt for a lender with an efficient and streamlined loan processing system to avoid unnecessary delays.  Customer Service: A responsive and supportive customer service team can make your loan journey smoother.  Additional Benefits: Some lenders offer additional benefits such as pre-visa disbursement and reduced interest rates for female students. When choosing, keep in mind these benefits.  How to start the UK education loan process? Some important facts about the education loan procedure for the UK are as follows: Step 1: Research the education loan procedure Research is the key. So, start looking at viable options at least 8 – 10 months before the new semester begins in the UK. The loan procedure of every country is different. Hence, going through reputed sites like EduFund to gain the correct information is absolutely crucial. https://www.youtube.com/watch?v=Obks6fyQyhs Check Education Loan Eligibility Step 2: Know the difference between secured and unsecured education loans Secured loans: Secured loans refer to collateral-based finance options like government banks for funding higher education in foreign countries.  The low interest rates and fewer processing fees make them look inexpensive when compared to other types of education loans Unsecured loans: Unsecured loans refer to education loans secured with the help of NBFCs or non-bank financial companies.  The interest rates are high, no doubt, but it is a feasible option if a student wants to pursue an education course in one of the top 10 or 20 universities in the UK.  This service is also available on the EduFund App at zero hidden charges and fast disbursal. Step 3 - Decide the university in which you want to enroll Identify the university in which you want to enroll. Make sure it is offering the education course you want to pursue. Look at the eligibility criteria for admission. Look at the average fee structure. Calculate the amount of education loan you will need to study at the specific university.  Include both academic and non-academic expenses like tuition fees, other compulsory fees, accommodation expenses, transportation costs, books and supplies costs, and, health insurance premiums. Look at the amount you can shelve out from your pocket and the amount needed to pursue the studies. Calculate the difference and identify the actual loan amount you will need. Step 4 - Make inquiries about the banks and loan options Identify the banks that offer loan opportunities. Check the criteria for loan eligibility. Look at the interest rates. Calculate the actual amount you will have to pay. Know about the payment schedule and the terms of payment. Enquire about the penalty or the additional amount you will have to pay in case you are unable to pay on schedule or as directed. For a hassle-free process, you can check your eligibility for easy educational loans at EduFund. Why? No hidden charges, low-interest rates, and collateral-free loans up to Rs 75 Lakhs. Step 5 - Compare the education loan options in the UK You have already shortlisted the banks with viable education loan options.  Compare all the relevant details like interest rate, processing fee, processing time of the loan, loan margin, payment terms, and also available income tax exemptions. Do not hesitate to make comparisons as it will help to save a good amount of your money. https://www.youtube.com/watch?v=mW0VH10uH9I Conclusion The presence of widespread Indian communities and numerous academic courses like Medical, Engineering, Hotel Management, Finance, and Business coupled with an easy education loan processing for the UK acts as a magnet to lure in students from all over the country. To interested Indian parents, EduFund is here to help you. Explore all of your options and compare them all in one platform. CONNECT WITH OUR STUDY ABROAD EXPERTS

Securing financial support through education loans is a crucial step for graduates and professional students pursuing advanced degrees. However, the loan process for these students presents unique challenges that require careful navigation. In this comprehensive guide, we will explore the intricacies of obtaining education loans specifically tailored to graduates and professional students. Understanding education loans for graduates and professional students Education loans are essential financial tools for graduate and professional students pursuing advanced degrees. These loans provide the necessary funds to cover tuition, fees, and living expenses. Graduate and professional students have specific considerations when it comes to education loans. They typically face higher tuition costs, longer program durations, and specialized career paths.  Understanding the types of loans available, such as federal loans, private loans, and institutional loans, is crucial. Graduate and professional students should also be aware of the loan repayment options and potential loan forgiveness programs. By understanding education loans, students can make informed decisions about their financial future. Preparing for the Loan Process Preparing for the loan process is crucial for graduate and professional students seeking education loans. Here is a guide: Start by creating a comprehensive financial plan, assessing the total cost of education, including tuition, fees, and living expenses.  Research and compare different loan options, considering factors such as interest rates, repayment terms, and eligibility requirements.  Improve creditworthiness by maintaining a good credit score and addressing any outstanding debts.  Gather all necessary documentation, including tax returns, financial statements, and identification documents.  Finally, seek guidance from financial aid offices or loan counselors to ensure a smooth application process and maximize available financial aid options. https://www.youtube.com/watch?v=tdwqQH0xkFw Federal student loans Federal student loans are a valuable resource for graduate and professional students seeking financial assistance to pursue their advanced degrees. These loans, provided by the U.S. Department of Education, offer several benefits and protections. Here's what you need to know: 1. Types of Federal Loans: Graduate and professional students can access two main types of federal loans: Direct Unsubsidized Loans and Direct PLUS Loans. Direct Unsubsidized Loans are available to most students, regardless of financial need, and accrue interest while in school. Direct PLUS Loans require a credit check but can cover expenses beyond the unsubsidized loan amount. 2. Eligibility: Graduate and professional students are generally eligible for federal student loans as long as they are enrolled in an eligible program at least half-time. U.S. citizenship or eligible noncitizen status is required. 3. Application Process: To apply for federal student loans, complete the Free Application for Federal Student Aid (FAFSA). This form determines your eligibility for federal aid, including loans. Be sure to submit the FAFSA by the designated deadline. 4. Loan Limits: Graduate and professional students typically have higher loan limits compared to undergraduate students. The specific loan limits depend on the loan type, academic program, and dependency status. 5. Interest Rates and Fees: Federal student loans have fixed interest rates determined by Congress. Interest rates may vary depending on the loan type and disbursement date. Federal loans may also have origination fees, which are deducted from the loan disbursement. How to choose the best education loans? Read More Private education loans  Private education loans are another option for graduate and professional students seeking additional funding for their advanced education. Unlike federal loans, private loans are provided by banks, credit unions, or other private lenders. Here's what you need to know: 1. Eligibility and Application: Private loan eligibility and application requirements vary among lenders. Generally, a good credit score and a co-signer with a strong credit history are beneficial for securing private loans. 2. Interest Rates and Terms: Private loan interest rates are determined by the lender and can be fixed or variable. Terms and repayment options also vary, so it's important to compare rates, fees, and repayment terms from multiple lenders. 3. Loan Limits: Private loan limits depend on the lender and may vary based on factors like creditworthiness, program of study, and cost of attendance. 4. Considerations: Before choosing a private loan, carefully review the interest rates, repayment terms, and borrower benefits. Be aware that private loans may have fewer repayment options and borrower protections compared to federal loans. 5. Exhaust Federal Options First: It's generally recommended to exhaust federal loan options before considering private loans due to their typically lower interest rates and more flexible repayment options. Institutional loans and other financial aid resources Institutional loans and other financial aid resources are additional avenues for graduate and professional students to secure funding for their education. Institutional loans are loans offered directly by universities or professional schools. These loans may have unique terms and eligibility criteria, so it's important to explore options specific to your institution. Additionally, graduate and professional students should also explore other financial aid resources, such as scholarships, grants, and work-study programs. These resources can help supplement education costs and reduce reliance on loans. Research and contact your school's financial aid office to inquire about institutional loans and explore available financial aid opportunities. Repayment strategies and loan management Repayment strategies and effective loan management are crucial for graduate and professional students to successfully navigate the repayment phase of their education loans. Here are some strategies to consider: 1. Understand your repayment options: Familiarize yourself with the various repayment plans available, such as Standard Repayment, Graduated Repayment, Extended Repayment, and income-driven plans. Each plan has different terms and monthly payment amounts. 2. Create a budget: Develop a realistic budget that considers your income, living expenses, and loan repayment obligations. Prioritize your loan payments to ensure they are made on time. 3. Explore loan forgiveness programs: Investigate loan forgiveness and repayment assistance programs specific to your field, such as Public Service Loan Forgiveness (PSLF) or income-driven repayment plan forgiveness options. These programs can help reduce your loan burden over time. 4. Communicate with your loan servicer: Stay in touch with your loan servicer to ensure you have accurate information about your loans and to address any questions or concerns you may have. 5. Consider refinancing or consolidation: Explore options for refinancing or consolidating your loans to potentially lower interest rates or simplify repayment by combining multiple loans into a single payment. 6. Stay proactive and responsible: Make your loan payments consistently and on time. If you encounter financial difficulties, contact your loan servicer to discuss potential deferment, forbearance, or alternative repayment options. Remember, education loans are investments in your future, and with careful planning and responsible management, they can serve as a stepping stone toward your professional goals. TALK TO AN EXPERT

A full and fruitful life necessitates a high-quality education. For several, it is the equivalent of graduating from a prestigious university. However, the cost of education is increasingly rising. In reality, the price of attending a reputable university is already very high. Parents who plan their child’s education in advance and want to provide them with the best opportunities possible to invest their money in mutual funds (MFs), fixed deposits (FDs), and unit-linked insurance policies (ULIPs). However, amid all of this, there could be a financial shortfall. In such a situation, an education loan plays a critical role in bridging the gap between the amount in hand and the total amount needed. According to research, education costs are rising at a rate of 15% per year on average. In 15 years, the cost of an MBA is expected to rise from Rs 2.5 lakh to Rs 20 lakh. So, if a couple saves Rs 2,500 per month for 15 years at a rate of 12%, they would have saved about Rs 12.5 lakhs. Now, you all must have some questions in your mind regarding the intricacies of availing of an education loan. We have tried to answer a few commonly asked questions to enhance your understanding Apply for Education Loans 1. Who can apply for the loan? The primary creditor is a student. A co-applicant may be a parent, partner, or sibling. 2. What is covered by a student loan? It includes the basic course fee and other costs such as (college) housing, exams, and other miscellaneous expenses. 3. To whom is the loan being extended? It is available to students who wish to study in India or further their education outside of the country. The overall sum available for studies in India and abroad differs from one bank to the next. 4. For what courses can the loan be availed? It is available as a full-time, part-time, or vocational course leading to graduation or post-graduation in engineering, management, medical, hotel management, architecture, and other fields. Is it advisable to opt for Education Loans for an Online Degree? Read More 5. What are the eligibility criteria and documentation requirements? To be eligible for the loan, one must be an Indian citizen who has been accepted into a college or university that is recognized by a competent authority in India or abroad. The applicant must have completed his senior high school education. Some banks provide a loan even before a student has been accepted to a university. The Reserve Bank of India (RBI) guidelines state that there is no upper age limit, but some banks may impose them. Additional documents such as the institution's admission letter, fee structure, and Class X, XII, and graduation (if applicable) mark sheets are required by the banks. The co-income applicant's records, such as salary slips or income-tax returns (ITR), are also needed. 6. Is collateral required for financing the loan? Depending on the number, banks will fund up to 100% of the loan. There is currently no margin money available for loans up to Rs 4 lakh. To study in India, the applicant must contribute 5% of the necessary funds. The needed margin money for international studies, on the other hand, rises to 15%. Banks may also need collateral for loans exceeding Rs 7.5 lakh. For loans up to Rs 4 lakh, financial institutions currently do not need any collateral or third-party guarantee. A third-party guarantee is required for loans between Rs 4 lakh and Rs 7.5 lakh. For loans exceeding Rs 7.5 lakh, a security deposit is required. According to the fee structure, when a loan application is approved, the banks send the funds directly to the college or university. 7. What is the rate of interest charged on the education loan? To set an interest rate, banks use the Marginal Cost of Funds Lending Rate (MCLR) which in India ranges anywhere from 7% to 8% plus a spread (about 1-2.5%). The additional distribution is currently in the 1.35-3 percent range (as of 2017). 8. What is the process of repayment? The individual availing the loan for their education is responsible for repaying the loan. In most cases, repayment begins when the course is completed. Some banks also give you a six-month grace period after you get a job or a year after you finish your studies before you have to pay back your loan. The repayment period is usually between 5 and 7 years, but it may also be extended. The bank charges a basic interest rate on a loan over the repayment period. The student's equated monthly installment (EMI) burden for future repayments is reduced by paying basic interest during the course duration. 9. What precautions should one take while applying? When availing of the loan, one must consider bank fees such as transaction fees, pre-payment fees, late EMI payment fees, and so on. The majority of lenders charge a processing fee of 0.15 percent of the total loan amount. 10. Are there any tax benefits? The interest paid on the repayment is deductible under Section 80E of the Internal Revenue Code. This tax benefit is only available to people who are paying interest on a personal loan. The whole amount of interest charged is deductible from your taxable profits. This deduction can be taken for up to 8 years. There are no tax deductions available for the principal sum. FAQs What is an education loan? An education loan is a type of loan given to students who wish to pursue higher education but fall short of finances. Its primary goal is to help students sponsor their higher education. The eligibility criteria for education loans is simple, it requires students to be above the age of 18 and must have an offer letter. Is collateral required for financing the education loans? There are two types of education loans, one with collateral and the other one without collateral requirements. Depending upon the loan amount, banks may require the applicant to submit collateral as security. Loans below 4-5 lakhs do not require collateral, however, the policy may differ based on the issuing party. What are some precautions one should take before taking an education loan? When availing of the loan, one must consider bank fees such as transaction fees, pre-payment fees, late EMI payment fees, and so on. The majority of lenders charge a processing fee of 0.15 percent of the total loan amount. Conclusion Good education is extremely important in the present dynamic world which not only boosts self-confidence in students but also equips them with skills that in turn help them lead their best lives. Hence, taking a loan might look frightening but in the long run, it definitely pays off provided the student is focused and makes the best of the opportunity. You can fill in a simple form to get started with your education loan application. Also, since an education loan is a person's first loan, it aids in the creation of a good credit score. If you repay the loan on time and without defaults, it will be easier for you to obtain a home loan, car loan, or any type of loan in the future.

Want your child to go to the best possible college in India or abroad? Plan way ahead of time. Being prepared beforehand is the secret ingredient to being a successful parent when it comes to backing up your ward’s academic career. When you build an education fund it is important not only to save up but also to invest. Here are some pro tips on how to send your child to the best possible college.   1. Planning ahead The significance of planning ahead can not be stressed enough. There are multiple reasons why you should start having forethoughts about your family’s future. Firstly, an ideal way of demystifying a huge process is to break it down into short-term goals. Secondly, it can resolve all the stress that may come your way when you are faced with the biggest monetary decisions of your life. One such decision is regarding the college your child will eventually attend. When you are ready with your investment money and savings directed to your kid’s education, you can effortlessly offer financial backing in whatever dream college they aim for. The pandemic has not been entirely successful in distorting the trend of pursuing a global education. Make sure to start investing early so that you can keep many options open for your kid.   2. Choosing investment schemes  There are too many options to choose from when it comes to investment schemes. This is another reason why you should begin as soon as possible. This way you will have more time in listing out the most suitable choices and deciding how you are going to divide your money between savings and investments. You can go for mutual funds instead of investing directly in stocks. Investing in mutual funds is a hassle-free option, unlike direct investments as you will not be required to have in-depth knowledge of market trends. 3. Considering the possibility of a global education While it is not possible to know for certain the stream of education your child will opt for in the future, it is advisable to remain prepared. It can be useful to remember that the earlier you invest, the more wealth you generate. This principle works for every financial goal you set and it is particularly beneficial if there is a possibility of pursuing global education. Another concept you need to be familiar with in this situation is education inflation.  Education inflation is a result of the costs of education rising faster than the average income, and this rate of inflation is higher than the rate of general inflation in most countries. The only way to beat education inflation? Start investing early. FAQs What is important when choosing a college? The most important criteria for choosing a college for your child are the course and their reputation in that field. For example, if your child wants to study business, they should aim for universities like Harvard, Columbia, University of Pennsylvania, and MIT. Other factors to consider are rank, ROI of the university, acceptance rate, qualifications, and eligibility criteria as well as the fees and cost of pursuing the course. It's important to look at scholarships, application waivers, and the placement opportunities offered by the college. How do I choose the right college for my child? The right way to choose a college for your child is to plan ahead. Find out which course your child wants to pursue, and check out the best colleges and the best country to pursue that program. The next step is to figure out the future cost of college for the program. You can use the college cost calculator to determine the cost of tuition fees and living expenses, adjusted to inflation and price increase. How to plan for college? The most important aspect of planning for college includes cost and tuition fees. There are multiple costs involved in sending your child off to college such as tuition fees, accommodation, travel, books, stationary, lab expenses, and miscellaneous expenses. Tuition fees and accommodation are the two biggest expenses that parents need to bear, thus, starting an education fund after determining the costs is the best way to plan for college. Conclusion The above-mentioned points prove why simply looking up dream colleges for your kid is not enough. To be practical, financial backing is one of the most important factors in this matter. Plan ahead. Diversify your investments. Provide your child with the future that they deserve.

Introduction The common myth about student loans is that they apply to only students who come from underprivileged family backgrounds. While education loans are crucial for meritorious students from not-so-well-to-do families, they can be a go-to event for families that can afford to pay for their kid’s education. You might wonder, why go for education loans when you have the money? Well, as understated as they are, education loans can help you inculcate some healthy monetary habits. They can help you compartmentalize your finances quite efficiently. Moreover, they come with a range of benefits.    https://www.youtube.com/watch?v=6eNtxkgpAbk a) Putting away pressure from other savings  A household runs on a variety of expenses, which is why it is so important to break these down. You can categorize your monthly income into expenditures and savings. When you compartmentalize, you can have some level of clarity on how much you would like to put away as savings. Saving for your child’s education is a brilliant idea but it is not entirely opposed to applying for education loans. This means that savings and loans are not alternative methods of securing your child’s education. In fact, they can go hand in hand in helping you manage your finances most effectively.  For example, covering all of the expenses related to your kid’s education it can take away all the strain on your savings and investments. You will no longer be required to liquidate your fixed deposits and mutual funds before their maturity period.  https://www.youtube.com/watch?v=O9P78xefVvQ b) Financial disciplining  Having money put away for your child’s education is a great decision on your part but that should not come in the way of your child learning to be self-dependent. In fact, education loans are a great way to teach your kid to manage their own finances.  It is a great start to the art of setting financial goals and meeting them no matter what. This kind of financial discipline can go a long way in teaching them to be responsible beings as they grow up.  Apply for Education Loans c) Creditworthiness & its rewards  Student loans are a great way to build credit. With the increasing credit score, your child will be qualified for future loans of this nature. It will instill self-belief in them regarding their capacity to be self-sufficient.  With education loans, you get to borrow money at relatively lower interest rates. On top of that, an impressive credit score makes your child more qualified to avail of future credits at low-interest rates.  d) Crucial if you are planning to go abroad  Education loans are particularly useful if the plan is to go out of the country for higher education. Global education takes into account not only tuition fees as an expense but also the cost of living, among other things. You should also consider that the value of the Indian currency has been depreciating for many years against most foreign currencies like the US Dollar. As such, the cost of sending your child abroad becomes exponentially high when weighed against the cost of sending them to a different city in India for higher education.  Thus, in most cases, your savings will not be adequate to support your kid’s education abroad, unless you have been saving for a child's education from an early age. If the candidate is worthy enough of the financial support, student loans are not only easy to avail, of but also within the capability of students to pay off simultaneously as they receive their degrees from reputed institutions abroad. Start Investing in Mutual Funds e) Tax benefits  Last but not least are the tax benefits that come as an added advantage to availing of education loans. Under Section 80E of the Income Tax Act of India, the interests paid on education loans can be claimed as deductible. This means although tax benefits can not be applied to the principal amount of a loan, one can be exempt from paying the interest amount. Once your taxable income has been evaluated, you can avail of this tax benefit on your interest money without any higher caps. Such benefits are usually availed either by the candidate who is pursuing an undergraduate or postgraduate course or by their legal guardian.  FAQs Is it wise to take a student loan? Yes, it is wise to take a student loan if it can help you sponsor your education or your child's education. Depending upon the interest rate, the repayment horizon, and the ROI of your course, you can determine whether or not you can afford the EMIs on your salary. What are the benefits of availing of an education loan? The biggest benefit of availing an education loan is the ability to finance your studies. It helps students across the globe pay for college and build a career for themselves. Other benefits of taking an education loan are affordable interest rates, grace period and repayment flexibility for students, tax benefits, help build credit, and help you save your savings for other financial goals. What are the disadvantages of education loans? There are many disadvantages of education loans - High interest rates and costly EMIs Loan repayment can last up to 15 - 20 years Students have to pledge collateral if the amount is higher Non-payment can lead to heavy penalties and affect your credit score Can induce stress and increase student debt in case of non-payment Conclusion Education loans are definitely a good idea because they can ease up not only your child’s educational path but also their prospective career routes. There are various kinds of education loan schemes available in the market. The things that you must consider while making this choice are low-interest rates, tax benefits, credit limits in the case of global education, and so on. Weigh your options carefully while choosing the best one for you.

What is concentration risk in Equity funds? Let us explain! Have you heard of the saying “putting all your eggs in one basket”? It means that you are dedicating a large number of your efforts and financial or other resources to one thing and hoping for its great success. Similarly, in your investment portfolio, your eggs are your savings - the money bags and the sectors or themes or instruments are the baskets. When you put all your eggs in a particular sector, and if the market crashes down due to unforeseen market conditions, all your eggs go bad (in short – you lose all your money bags). This is a concentration risk. When you have invested a lot in a sector, most of your expected returns depend solely on that particular sector’s performance. The possibility of your returns getting derailed due to high dependency on a small set of factors - this unique risk is called concentration risk. Why is this risk important? When we invest, we invest for our future, and our long-term goals – retirement, children’s education, wedding expenses, and more. Suppose, you invest in a mutual fund that is supposed to earn you a 15% return. However, if the mutual fund invests only in the infrastructure sector – this fund could be impacted by a multitude of macroeconomic factors such as interest rates, price of fuel, currency appreciation/depreciation, etc. In the time period of 2007-12, the infrastructure index gave an annualized return of -3% when compared to Nifty, which earned its investors a return of 7-8%. This is when diversification becomes important. Your portfolio should consist of sectors that complement one other. For instance, when oil and gas prices are on the rise, the energy sector is outperforming the market. However, the infrastructure sector which uses energy as input, or any sector which utilizes oil and gas as an input in their production would see an increase in costs – a decrease in stock price. Hence, these would move in opposite directions. If you had stocks from sectors that are moving in the opposite direction, you would either benefit from the net upside (Sector 1 increase + Sector 2 decrease), or you would limit your downside. Some sectors such as steel have long business cycles – they tend to have a longer slump (of greater than 10 years) due to macroeconomic conditions such as lower demand or higher supply, etc. If one invests in these sectors, there is a high risk of your portfolio underperforming the market. Consider a fund that invests in oil, steel, and other metals (they are also available as commodity indices). Oil and metals typically see simultaneous ups and downs in market cycles – this would mean higher risk and a higher impact on the portfolio of the fund. Marco-economic correlation Debt funds are impacted by a change in interest rates. When the RBI policy announces an increase in interest rates, the prices of the funds start to plummet if they have invested in long-term bonds (which are impacted the most). Similarly, there could be sectors that are impacted by interest rate movements or GDP movements. When there is a declaration of a decrease in interest rates by RBI’s monetary policy, NBFCs could gain from this move. The banking sector could be affected by this move due to a crunch in the interest margin i.e., profit for the bank – as the interest rates climb up, the profit margin increases and vice versa. However, this could also mean that the banks are able to borrow from the RBI at a cheaper rate. Large companies with stable cash flows will find cheaper debt financing options, and hence their stocks could also be on the rise. Hence, if one had only invested in the Banking and Financial sector (BFSI), one would see a drop in their portfolio. When there is an increase in interest rates and if one had invested in the Auto and Real estate sectors - despite having invested in two sectors, the impact would be negative. Beware of these correlations and invest in sectors that are least similar, so that your eggs cushion your portfolio during economic volatility. FAQs What causes concentration risk? Concentration risk is a result of uneven distribution of exposures (or loan) to its borrowers. How can you prevent concentration risk? You can prevent concentration risk by diversification across sectors, rebalancing your portfolio or by selling your certain investments. What is concentration risk? Concentration risk refers to anticipated loss in investments due to investing in multiple funds with the same or similar investment strategy. The loss cannot easily be remedied and hence, investors are advised to avoid it. What is concentration risk limited to equity funds? No, concentration risk is not limited to equity funds. It is also present in debt funds and it is important to understand the sectors and areas of investment of each fund to avoid this risk. Consult an expert advisor to get the right plan TALK TO AN EXPERT

With the increasing cost of higher education, it is becoming increasingly difficult for students to pursue higher education. The high education cost has been one of the main reasons for worry amongst the students. To avoid losing opportunities, students often turn to financing their education via education loans.  But education loan isn’t always that simple. With procedural and interest rate variations, practically all banks and financial organizations provide education loans. The tricky part is figuring out the EMI. Some of these loans are given at a very high interest rate making them more expensive. Herein lies the importance of the education calculator, it enables you to make the best choices. It is important to know and calculate the EMI costs beforehand for what amount the loan is taken along with its interest rate and the repayment time/tenure.  Advantages of using an education loan calculator  One benefit of using an EMI calculator for student loans is that you can see the results right away. Using a loan calculator is very convenient. You may obtain your EMI by entering the loan amount, interest rate, and loan tenure without having to perform any complex calculations. Additionally, these EMI calculators are free and simple to use.  Benefits of education loan calculator  Let’s find out the benefits of education loan calculators:   Saves time and effort: People can easily know the EMIs they will be required to pay by using an education loan calculator. The need to invest your own time and effort for the interest EMI calculations is eliminated.  They are not required to spend time performing manual calculations. The calculator will show customers how much they would need to pay in EMIs when they enter the loan amount, interest rate, and loan tenure.  Results that are accurate: If one is not precise and careful with the numbers when calculating the EMI amount, there is always a chance for error. On the other hand, using education loan calculators guarantees precise outcomes.  Financial planning aid: Users can determine the amount they would be required to pay in the form of EMIs by entering important information about an education loan into the calculator. Knowing this is crucial since it helps them assess their financial situation and determine whether they can afford the loan and also helps them formulate a strategy for loan repayment.  Personalized calculations for EMIs: You can easily personalize your EMIs to your needs and establish your repayment schedules accordingly with the help of online EMI loan calculators. You can experiment with different numbers with the input variables to examine the several EMI alternatives accessible to you in order to choose the one that best suits your needs. You can choose the amount of your EMI, the length of time you want to repay your education loan, the banks that offer you the greatest interest rates, and repayment terms using these online loan calculators. Also read: What are the benefits of education loans in India?  Factors affecting interest rates on Education loan  Type of educational institution: Chances are that a lesser interest rate would be levied if the applicant had been accepted into one of the best colleges in India or overseas. In addition, banks might not demand collateral.  Gender: It has been noticed that most institutions provide female students with a lower interest rate than they do male students. The major goal of this is to inspire young girls to continue their studies and flourish in the classroom.  Credit history of parent or guardian: When a child applies for an education loan, the parent or guardian often serves as the guarantor. This is also the case when the student does not have a credit history the lender would require a family member or guardian to be the guarantor of the loan. In instances like this, it is vital for the guarantor to hold a good credit score so as to ensure that the loan application is not rejected.  A credit score of the applicant: The lender may be willing to offer a lower interest rate on an educational loan if the applicant himself or herself has a good credit score. The higher the credit rating, the lower will be the interest rate charged. Maintaining a score above 750 is always advised since the applicant will be regarded as a creditworthy customer.  This is why using an education loan calculator can be a benefit for those planning to take the loan. It helps you determine the final amount, personalizes your EMIs, and figures out the best course of action before making a life-changing commitment.   Finding the best education loan is tough but we can simplify it for you! Connect with our experts today to find the best and low-interest education loans for your child’s bright future. 

Worried you don’t have a good credit history to get an education loan for your children? With the increasing cost of higher education, it has become very difficult for students to pursue further education. Most financial institutions like banks assess a loan application on the basis of creditworthiness. Students don’t usually have a decent credit score making it difficult to get loans for higher education.   For students who are good at academics, this is where merit-based education loans come in. This new type of education loan program evaluates the students' profile and potential based on their academics or merits so that loans could be given on their future earning potential rather than their credit history.  The main purpose of education loans is to ensure that every student who wants to pursue higher education gets the opportunity to study and develop a sound career.   The merit-based education loans are easy to get once your profile qualifies for the loan and are solely given on the basis of a student’s merit and profile. These loans can be obtained digitally. Who is eligible for the merit-based loan program？  The eligibility for merit-based loans solely depends on the student’s academics and merits. To be eligible for these loans, the student must be excellent in their academics and merit. This would be evaluated by their individual profile. The loan would be approved once the academic excellence is established.  Eligibility criteria:   The applicant should be a resident of India who has secured admission to renowned colleges or universities in India and abroad.    The candidate should be within the range of 18 to 35 years at the time of taking the loan.   The applicant must be pursuing a graduate or postgraduate degree and a PG diploma.   He/she must have a confirmed admission in a college/university recognized by UGC/Govt./AICTE etc.   Candidates applying for full-time courses must have a co-applicant who can be the parent/guardian/spouse/parent-in-law (if married).  Which courses are this loan program applicable to?  Undergraduate Degrees and Diplomas (BA, BCom, BE, BEd, BSc, BBA, MBBS, B Tech, LLB.  Postgraduate Degrees and Diplomas (MA, M Com, MSc, M Res, LLM, MFA, M Ed, M Phil, MBA, MD, and others)  Ph.D. courses/Miscellaneous Doctoral Programmes.  Specialized Training Courses.  Furthermore, the lender will determine which courses are qualified for merit-based loans.   How does extending loans based on merit work?  Merit-based loans are given after examining a student's potential via the Employment Predictability Model which is an Artificial intelligence (AI) that examines the merits and academics of a student to test for their soft and hard skills so as to assess the student's employability in the future which will help the AI to decide if your profile is fit for a merit-based loan.  The assessment then predicts the future income of the students.  Then loans are sanctioned on the basis of your future employability score.  What are the documents required to apply for merit-based education loans?   Properly filled Loan Application Form   Letter of admission   Copy of 10th/12th mark sheet or latest education certificate   Statement of cost of study   2 passport-size photographs   PAN card and Aadhaar Card of the student and Parent/ Guardian   Driving License/Voter ID/Passport/Aadhaar Card (Copy of any one)   6 months bank account statement of the student or guarantor or co-borrower/Rental agreement/Ration card/Electricity Bill/Tel Bill/Gas Book (Copy of any one of these)   Income proof   Latest salary slips or Form 16 of the parent/ guardian/ co-borrower    Last 6 months' bank statement or updated bank passbook    Updated 2 years ITR (Income Tax Return with income computation) or Last 2 years IT assessment order of parent/guardian/co-borrower    Statement of the assets and liabilities of the parent/guardian/co-borrower  Is a merit-based loan right for you?  Students who want to pursue higher education & require financial support can apply for the merit-based loan program.   The loan program overlooks your family income and credit score and gives loans solely on the basis of the applicant’s merit.   Students who do not want to bother their parents for finance can seek a merit-based loan program for their higher education.  Top Indian Banks that offer merit-based education loans  State Bank of India  HDFC Bank  Axis Bank  Canara Bank  SBBJ  Union Bank  UCO Bank  Bank of Baroda  Punjab National Bank  Non-Banking Finance Company (NBFC)  Merit-based loan interest rates in 2022 State bank of India6.85% p.a. to 8.65% p.aHDFC Bank 9.55% p.a. - 13.25% p.aCanara Bank 8.75% p.a. to 9.25% p.aUnion Bank of India6.80% p.a. to 10.05% p.aUCO Bank7.30% p.a. to 9.70% p.aBank of Baroda7.60% p.a. to 9.70% p.aPunjab National Bank6.90% p.a. to 9.55% p.aAxis Bank 13.70% p.a. - 15.20% p.a Merit-based loan EMI calculator   It is necessary to be aware of how much money you would have to repay once they acquire the merit-based loan. For this purpose, you can use Edufund to figure out the cost of repayment, how much your monthly payments would be, and how much the total cost of the loan would be. Enter a few loan-related factors such as the loan amount, tenure, interest rate, and processing costs to get an estimate of your equivalent monthly installment (EMI).   Need help finding the best education loans for your child’s higher education? Look no further, click here now to get started! TALK TO AN EXPERT FAQ What are the interest rates?  Various banks have their own interest rates on the loan amount. The interest rate is usually considered the sum of the base rate and markup. The base rate is usually around 8% to 10%. So, the interest rate depends on bank to bank, ranging between 6.85% and 15.20%. The interest rates are also dependent on the loan amount and the college or university in concern.  What are the courses covered under merit-based education loans?  Graduation, Post-graduation/Degree/Diploma courses from renowned colleges or universities approved by UGC/ AICTE/IMC/Govt. etc.  Regular Degree and Diploma courses conducted by leading autonomous educational institutes such as IIM, IIT, etc.  Educational disciplines include Engineering, Management, Medicine, Computer science, Pure Science, Architecture, Agriculture, Hotels and hospitality, Fine arts and design, etc.  Technical and vocational training courses such as aviation, air-hostess, shipping, nursing, teacher training, etc What are the expenses covered by merit-based education loans?  The merit-based loan covers the following expenses:  100% of the payable college tuition fees  Accommodation charges, if any  Books and equipment  Library fees  Examination fees  Traveling expenses for studying abroad, if any  Cost of two-wheeler  Other miscellaneous expenses necessary to ensure completion of the course  What is the loan quantum?  The quantum of merit-based loan are:  Up to Rs.10 lakh for studying in India  Up to Rs.20 lakh for studying abroad What is the time of loan approval?  The approximate time required for the approval of the loan is 15 working days which is calculated right from the receipt date of the application. The receipt is the guarantee that the application is completed in all aspects What is the loan disbursement process?  The merit-based education loan is disbursed either in installments or in full payment keeping in account the number of funds to be disbursed along with the fee schedule as reviewed by the bank directly to the mentioned educational institute What is the education loan tenure?  The loan tenure for a loan of up to Rs.7.5 lakh and more is around 15 years. It is within this loan tenure, that the candidate applying for the loan has to complete all the repayment processes of the loan and so on before the last date What is the education loan repayment duration?  The ideal repayment duration of the merit-based loan is the sum of the course period and 1 year or 6 months after getting a suitable job, whichever is earlier.  Are there any charges levied for late payment of merit-based loan EMIs? In the case of late payment of EMIs, lenders do levy a penalty. Depending on the lender, the penalty that will be levied will vary Will I be able to pre-close the loan? Yes, you can pre-close the loan at any time during the loan tenure Who are the individuals that can be co-applicants in a merit-based loan?  The below-mentioned individuals can be co-applicants:   Grandparents  Parents-in-law  Spouse  Sister  Brother  Parents  Is it possible to increase the tenure of the loan?   In case the course is extended by the university, the tenure of the loan can be increased.

The affordable living expenses in Germany, a stable economy, high-class living, and numerous job opportunities make the country one of the premier destinations for quality education and successful careers.  The cost of living in Germany depends on the location of the university because some cities are relatively more expensive than others. It is important to be flexible if a student wants to thrive on a limited amount. The average living expenses in Germany for Indian students vary between 10,200 EUR – 12,000 EUR (nearly INR 8.1 lakhs – INR 9.5 lakhs) every year.  Students should be aware of their living expenses before traveling abroad as it is helpful in creating a budget for living expenses. The college cost calculator on the Edufund app is a blessing as it helps to get an estimate about the future living expenses besides the education costs and create a personalized financial budget based on needs and requirements. Semester contributions Most of the universities in Germany are state-run; hence the education cost is a bare minimum. Students, however, have to contribute between EUR 175 – EUR 250 (nearly INR 13,993 – INR 19,990) per semester for administrative fees and student amenities.  Students can also apply for a public transport pass or a semester ticket that costs between EUR 25 – EUR 200 (nearly INR 1,999 – INR 15,992) for six months, based on the type and location of the university. They will not have to pay for transport for the next six months.   Private institutions in Germany charge tuition fees, especially for non-EU citizens. Additional read: Education loan process for Germany Living expenses in Germany for Indian Students 1. Accommodation (average monthly cost) An important chunk of the living expenses goes towards accommodation costs, which depend on the location of the university and the type of accommodation the student prefers.  The preferred accommodations and their average cost per month are. 2. Food (average monthly cost) Students have access to restaurants and cafes on the university campus, where they can eat at discounted prices. For students that live off-campus, local street vendors and food trucks are an option.  The living expenses in Germany are manageable for Indian students as there are Indian stores that can provide ingredients to cook authentic food items. Students who have to rely on restaurants need to remember that eating out on a regular basis will prove expensive.  Self-cooking is the best way to manage funds because the cost of basic food and beverages is affordable.  Average costs on some of the common food items include. 3. Transportation  The daily public transport facilities in Germany cost around EUR 20 (nearly INR 1,599) and a monthly pass will cost EUR 200 (nearly INR 15,992). Students can apply for student passes or choose to move around via rented bicycles at a nominal fee. 4. Health insurance International students must have health insurance in Germany. Students who are studying degree programs are eligible for a public health insurance plan that costs between EUR 70 – EUR 80 (nearly INR 5,597 – INR 6396) per month. Whereas students above 30+ should have private health insurance that costs between EUR 400 – EUR 500 ((nearly INR 31,984 – INR 39,980) per month. 5. Utilities and Bills Students living off-campus have to pay for water, electricity, garbage, and heating. In some cases, the bill is included with rent, otherwise; it costs nearly EUR 29.42 ((nearly INR 2,352) for a kilowatt-hour. How to save more as an international student in Germany?  Keep a fixed budget for the month Studying abroad means, you will be away from your parent and you’ll be alone so you need to have a budget for everything.  Talk to locals  Talk to locals around you because they know that place more than you. They will tell you the best deals around you in restaurants, cafes, and all.  Cook for yourself Go to the local grocery market and cook for yourself. Eating outside daily can cost you way more than cooking for yourself.  Get a flatmate/roommate Sharing space and your accommodation mean that you will be able to cut costs. It will save you money. Staying alone in a flat or room means you will spend more. If you get a flatmate/roommate, the price of that place will be half. You will end up splitting utility costs as well.   Do a side hustle Earn money by doing some part-time jobs or a side hustle. By doing that you will learn and also earn extra for you.   Use public transportation or a bicycle Using public transport daily is the best way to save money in countries like Germany. Private cabs and rentals can be very expensive for students. If you live in a small town, then opting for a bicycle to roam the city is the most cost-effective method.   Go secondhand Cut costs wherever you can and the best way to do this is by opting for second-hand products. Suppose you need a bicycle, no need to get a new one! Buy it from a second-hand market or from someone who doesn’t want his/her bicycle anymore.  Save money wherever you can Cut off your unnecessary plans. There is Wi-Fi everywhere so instead of buying data plans use them. You should also unsubscribe from OTT subscriptions you are not using anymore. Or any auto-debit subscription that is not in active use.  FAQs How can international students save money in Germany? Here are some tips on how to save money in Germany: keep a maintained budget  Talk to locals  Cook for yourself   Get a flatmate/roommate  Do a side hustle  Get a bicycle  Go for secondhand  Save on your mobile bills  Is it expensive to live and study in Germany as an international student? In comparison to other countries and cities, Germany is one of the places which is less expensive. How much money can international students earn in Germany? You can earn around 450 euros (Rs 37,000) per month by doing part-time jobs. How much money do I need as a student in Germany? On average around 870 euros (Rs 71,000) for a month is all you need for your expenses. Conclusion Prestigious universities and reasonable living expenses in Germany make the country an excellent choice for studying abroad. If you are in a dilemma about the cost of living, then consult with the counselors on the Edufund app to know more about it in detail. Consult an expert advisor to get the right plan TALK TO AN EXPERT

The demand for education loans has increased in India due to rising costs, increased demand for foreign education, and the need for upskilling courses or executive programs to boost career growth. While student loans may seem scary, there are many benefits of education loans that you can avail of while financing your child's higher education!    Tax break   Tax exemptions are the most incredible benefits of education loans. Under Section 80E of the Income Tax Act of India, the interest paid on education loans can be claimed as a deductible by the beneficiary. Tax benefits do not cover the principal amount of a loan but can be claimed when paying the interest amount. Parents can claim this deduction for the next 8 years from the start of payments after the moratorium period is lifted.    Moratorium period Education loan payments do not start the right way. Banks that offer education loans give you a period wherein you are not required to pay your EMI, which is called a moratorium period. T his period is generally for six months to 1 year; in exceptional circumstances, it can be more. This period is provided to help students find employment to start paying their loans without financial stress.     Attractive Interest rates   Educational loans have relatively low-interest rates than personal loans or house loans. Banks constantly compete to provide the best possible interest rates to students who need education loans. This gives students the advantage of shopping around for the best and most interest rates to reduce the final amount and quickly pay off their debt.    Zero collateral    Education loans do not require collateral in the form of an FD, land, bond, or other assets! Your child can get a collateral-free education loan to study abroad or in India. Banks assess requirements like the third-party guarantor, the parent's credit history, and your child's educational background to decide if your application is strong enough for approval. Banks also place heavy emphasis on the course and university your child is going to study.    Wide coverage   Contrary to popular belief, education loans provide blanket coverage. Education loans cover many payments like tuition fees, living expenses, and flights and help parents settle their child comfortably in a foreign land.    Additional read: Does education loans cover living expenses Cashback on Refundable Deposits   Education loans cover refundable deposits your child may have to pay during their university application process. This is not a feature offered by every education loan provider. It also depends on the loan amount and whether your loan is collateral free or dependent. Do check with your bank if you have the facility to get your money back on refundable deposits.   Secure your retirement savings   Another benefit of an education loan is that you do not have to use your savings for your child's education. If you do not have enough savings or investing stored, especially for schooling, then opt for an education loan that covers your tuition fees. The education loan amount you should be going for should be 25% of your child's total expenses. For example, if the cost is Rs. 50 lakhs, then your loan amount should be Rs. 12 to 13 lakhs.   An education loan can help you ensure quality education for your child and keep your retirement savings intact for the rainy day.   https://www.youtube.com/watch?v=4gTQkdePOWM Helps build Credit   One of the tremendous benefits of education loans is that it helps with credit building. Your child may want to buy a house in the future in a foreign country, and having a good credit history can accelerate that process. If you want your child to settle in a foreign country, then ensuring they have a good credit history is essential. Education loans can help them build a credit history with regular payments. This shows the financial institutions that you are a safe bet and trusted client for future loan applications.     A significant benefit of education loan is that it helps parents support their child's dream and build their future. Education loans are convenient if your child plans to go abroad or opt for an expensive degree in India. They provide financial support to those in need of immediate funds. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Due to a lack of funding, many students are unable to pursue quality education. As a result, students who desire to continue higher education, especially at universities abroad, choose to take out an education loan. In this blog we have discussed how can you save money and study by choosing the best education loans in India. Top banks for education loans in India Mentioned below is the list of top banks in India with interest rates for education loans: Best education loans in India Following are the best education loan in India you can opt for your children's further studies: 1. SBI education loan Additional read: Does education inflation impact student loan interest rates? 2. HDFC bank education loan 3. Punjab national bank education loan 4. Axis bank education loan What are the eligibility criteria and documentation requirements for an education loan? One must be an Indian citizen who has been admitted into an institution or university that is recognized by a competent body in India or overseas.  The candidate must have successfully finished senior high school.  Even before a student has been admitted to a university, certain banks may provide a loan. Although certain banks may do so, the Reserve Bank of India (RBI) guidelines specify that there are no higher age restrictions.  The banks want additional paperwork including the institution's acceptance letter, fee schedule, and Class X, XII, and graduation (if applicable) mark sheets.  It's also necessary to have the co-applicants income documentation, such as pay stubs or income-tax returns (ITR). Is collateral required for financing the loan? Banks will contribute up to 100% of the loan, depending on the amount. For loans up to Rs. 4 lakh, no margin money is now necessary. The candidate is required to provide 5% of the required funding in order to study in India.  On the other hand, the required margin money for abroad studies increases to 15%. Loans beyond Rs 7.5 lakh may also require collateral from the banks. Financial institutions do not require any collateral or third-party guarantees for loans up to Rs 4 lakh.  For loans between Rs. 4 lakh and Rs. 7.5 lakh, a third-party guarantee is necessary. A security deposit is needed for loans that are more than Rs 7.5 lakh. When a loan application is granted, the banks transmit the money straight to the institution or university in accordance with the fee structure. What is the process of repayment? The person who takes out the loan for their schooling is in charge of paying it back. Repayment usually starts once the course is over. Additionally, some banks allow you a grace period of six months or a year after you graduate from school before you are required to repay your loan.  Normal repayment terms range from 5 to 7 years, however, they can potentially be extended. Over the course of the loan's payback tenure, the bank assesses a standard interest rate. By paying basic interest during the course, the student's equivalent monthly installment (EMI) burden for future repayments is decreased. How to apply for an education loan? You can visit the Education Loans page on the EduFund website and fill up a simple form. You will get all the details, along with guidance from experts in the field. Taking out a loan may seem terrifying, but if the student is dedicated and makes the most of the opportunity, it will undoubtedly pay off in the long term. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Education loans for the USA have become a necessity because the cost of studying abroad is incredibly expensive. Every year Indian students travel to the USA to pursue their education at the top universities. Only some of them manage to arrange the funds, as the rest of them have to rely on education loans.  Several banks and NBFCs in India are offering education loans to interested students at reasonable rates to study in the USA.  It is essential to note that most banks do not provide 100% money for funding overseas education as 10% of the total amount has to be arranged by the aspiring student. Before applying for the loan, students should check the website of the desired university and know about the living expenses and fee structure to determine the actual amount they will need. They can use the loan eligibility calculator on the EduFund app to get a better idea about the amount they would be eligible to receive from a bank. https://www.youtube.com/watch?v=4gTQkdePOWM Education loans for the USA offered by banks  HDFC Bank Education Loan for Foreign Education – The scheme offers tax benefits, and the maximum loan amount offered is INR 20 lakhs. Oriental Bank of Commerce Education Loan for Study in India and Abroad – The loan amount depends on the fee structure of the university. SBI Student Loan Scheme – The maximum loan amount offered under this scheme is INR 1.50 crore, repaid within 15 years. Collateral is a must if the loan amount is more than INR 7.5 lakhs. Education loans for the USA offered by NBFCs Credit – the loan is offered at a floating rate of interest for 10 years. Avanse – interest rates are floating, and the processing fees are between 1 – 2% of the loan amount. Global Student Loan Corporation – this scheme does not require a co-signer. Eligibility of education loan for the USA The applicant must be a citizen of India. The co-applicants must be Indian citizens. The applicant must be 18+ years and above. Confirmed admission to a credible university in the USA. Strong academic record. Banks give preference to students studying technical or professional courses. Documents required to apply for an education loan Properly filled the application form. Admission letter from the university. The estimated cost of study. ID proof of the applicant and co-applicant. Address proof. Passport-size photographs. Income proof. Passport copy. School and university mark sheet. Documents of the qualifying exams like TOEFL, GMAT, etc. Foreign exchange permit letter. A brief statement of the assets and liabilities of the co-borrower/ guarantor/parents. Expenses covered under the education loan Tuition fees. Hostel fees. Caution fees. A refundable deposit and building fund. Laboratory, library, and examination fees. Cost of uniforms, books, instruments, and equipment. Cost of laptop if required. Traveling expenses. Insurance premium if applicable. Other expenses like projects or study tours. Repayment of education loan The terms of repayment of the education loan for the USA start after six months or one year once the borrower has secured a job or their course is complete, whichever comes first.  Tax Benefits Loan applicants can claim tax benefits and deductions only on the interest paid for seven consecutive years and not the principal loan amount under Section 80E of the Income Tax Act.  Additional read: Education loan for studying in Canada Factors to keep in mind before applying for the education loan Finalize the course and the university where you want to study.  Check the appropriate website to know about the required amount. Factor in all the expenses. Get an estimate of the total loan amount you will require. Make a list of required documents. Select a guarantor or a co-signer. Estimate the time of disbursement. How to apply for an education loan  The process of securing an education loan is time-consuming, so it is advisable to apply at the earliest possible moment.  Visit the representative of the financial institution. Check whether the study course is recognized as valid. Compare the loans provided by different banks and NBFCs based on the following parameters. Interest rate. Processing fees. Tenure or loan processing time. Expenses that are included in the education loan. Loan margin. Repayment terms. Start the education loan process immediately after submitting the application form for admission to the university.  Apply for the education loan at least three months before the date of the visa interview, as it takes time to process the education loan.   Conclusion An education loan from the USA is the best possible alternative for students who are unable to procure the required funds or scholarships for their studies in an overseas country. It helps to overcome the financial barrier of funding.  Our experts on the Edufund app can help with loan schemes up to 1 crore both in the USA and India so that you can make an informed choice. Choose from banks and NBFC partners where you do not require collateral for an amount up to INR 75 lakhs. The loan rates are low, and there are no hidden charges for a hassle-free loan approval process. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Top-up loans are available for parents/students who have already taken out an education loan. Top-up loans can be obtained from the same bank where you previously obtained an educational loan.  What are Top up loans? The amount supplied to the borrower by a lending institution in addition to the current loan is referred to as a top-up education loan. When a borrower approaches a lender for financial aid to fund, say, higher education overseas, a specific amount is approved based on various parameters. If a borrower applies for a secured loan,' the lending institution will authorize the amount of the loan based on the value of the collateral, which could be land, property, or a fixed deposit, for example. This loan would receive a top-up loan based on the same/different property.  In the event of an unsecured loan, the sanctioned amount is determined by factors such as academic profile, particularly GRE Score, credit worthiness depending on the applicant's and co-credit applicant's history, sources of income, career prospects after completing higher education, and so on. Money is given to the borrower from this sanctioned amount when the borrower needs it. After reevaluating all previously analyzed elements, a top-up loan on this loan would be offered. Need for Top-up loans With life returning to normalcy post the pandemic, students who'd already put off traveling abroad for further education are now continuing their plans. Currently, the expense of such an education is out of this world. People who have children studying abroad or who want to send their children abroad for studies generally take out education loans to cover the costs of their studies. As a result, if you need extra cash, you could consider taking out a top-up loan to pay for your study abroad. With rising costs, it is common to see parents/students struggling financially. In this case, you can take out a top-up loan, over and above the loan already taken. Furthermore, because the bank already has your information, you will have an easier time getting loan approval. However, authorizing an additional top-up loan depends on the higher loan eligibility. The bank also considers the outstanding amount you may have as a borrower. The calculation for Top Up Education Loan  Let’s see this example, as a borrower when you were qualified for Rs 50 lakhs but chose a credit of only Rs 35 lakhs, you also had Rs 15 lakhs available to you. Furthermore, if you've already paid Rs 5 lakhs from the Rs 35 lakhs, your overall eligibility increases - and you are now eligible to obtain a loan of Rs 20 lakhs more. Institutions offering top-up education loan  Instead of going with your bank, you might check into other choices, including other banks, non-banking finance companies, and education financing firms, which may be able to provide you with a loan at a lower interest rate. If your current bank refuses to approve the increased money requirement, you could check into alternative banks, NBFCs, and education finance businesses. Furthermore, if your present bank declines your additional loan application, you could try to transfer your existing loan to a new loan company instead of accepting a new loan from the new bank. Remember that additional loan approval is subject to the bank's policies, and not all banks offer top-up loans. Conclusion Applying for an education loan to help pay for higher education abroad necessitates careful planning. It requires the borrower to arrive at a precise approximation of the tuition fee and a determined prediction of other expenses, such as the cost of living. However, a student may need to borrow more funds from a bank to make up the difference due to currency rate fluctuations or fee increases. FAQs What is a top-up education loan? A top-up education loan refers to the additional amount given by the lender on top of the regular lending amount. Can I get a top-up on an education loan? Yes, you can top-up your education loan with your bank. What is top-up loan eligibility? If it's a secured education loan, then the top-up is based on the value of your collateral, and if it's an unsecured education loan, then the amount is disbursed based on your relationship with the lender, your credit history, your academic profile and your repayment discipline.