What are the Loan options for Graduates and Undergraduates in 2023-24?
As an undergraduate student, your mind is always preoccupied with countless options. Ranging from which classes to take on and which skills to add to your study schedule and varied extracurricular programs at college, each of these choices brings us closer to our final career path.
On the other hand, a postgraduate degree is when you are finally equipped with the specialization of your choice. Here, the study time is preoccupied with channeling one’s skillset to create a rewarding career.
In this manner, aspirations and work schedules of one’s academic journey change vastly as one moves from an undergrad to a postgrad degree. Accordingly, there are stark variations within the educational loan structure offered for students in their undergraduate and postgraduate degree periods.
Education Loan for Undergraduate Students
Overseas Educational Loans are the most popular financing tool used by students to match the expenses of overseas education. Even after visiting an overseas education consultant, students will start earmarking suitable loan providers to finance their studies. Loan providers look at various factors before allocating student loans. These include:
- School/Institution of Choice:
Most credible loan service providers, including HDFC Credilia, Avanse, and IDBI Unique, have lists of overseas colleges covered under their loan schemes.
- Type of Course:
Educational loans are easier to avail when the prospective course has a high chance of placement.
- Duration of Course:
As many students default out of their course programs within the course period, loan providers trust short-term job-oriented courses better. Subsequently, course works completed within one or two years are preferred for loan services.
- The actual extent of expenses:
While allocating the sum, loan providers specifically check to see the actual expense as the student moves overseas for their course.
Nowadays, most colleges provide a spectrum of course options, from one-year diploma programs to five-year integrated course programs.
Accordingly, loan service providers allocate up to Rs. 50 lakh in overseas education loans.
Education Loan for Graduation Students
Regarding postgraduate students, several specialization options are available today. Out of these, course works like Data Science, Business Analytics, Public Health, and Engineering Management are gaining substantial popularity. Education loans for Master’s programs from Overseas universities can go up to over Rs. One Crore.
- Canara Bank provides for up to Rs. One crore with collateral coverage for STEM courses from top foreign universities.
- Union Bank provides Indian nationals who have completed their undergraduate degrees from either Indian or Foreign universities with loan amounts starting from Rs. Four Lakhs in student loans.
- Several credible institutions, including Indian Bank, provide specific loan programs for professional specialization degrees like MBA and MS in STEM fields.
It all boils down to how well-qualified your student profile is. For this purpose, it is always best to sit with an experienced Higher Education Consultant to find your best loan provider.
Points to consider before choosing your loan provider:
All Scheduled Commercial Banks working in India have to set their interest rates on student loans based on the broad guidelines offered by RBI. Moreover, no collateral security is asked for loans up to four lakhs.
In India, tax benefits are regulated by the Income Tax Department under the central government. Subsequently, Section 80E of the Income Tax Act 1961 states that any student loan from a recognized financial institution is eligible for deductions.
When students from middle-class families plan their education, they often struggle with arranging the necessary collateral to show for the loan. In this situation, Non-collateral loans can help them. However, several associated factors, like the college’s reputation, course type, and duration, determine a student’s eligibility for a non-collateral loan.
Choose EduLoans for better loan options for your studies
With Eduloans prepared to bring you the best offers, you can now enable hassle-free financing to fulfill your overseas education dreams! Register today to find the most suitable loan options for your program. Contact us today.