Student Loans, Student Loans Company, Student Loan Process in Different Country

14 Sep 2021
Education
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Student Loans, Student Loans Company, Student Loan Process in Different Country

What is the Student Loan and Who Can Apply for Loan ?

Student Loans, Student Loans Company, Student Loan Process in Different Country : A student loan is a process in which a student get loan with limited circumstances to buy books and school accessory. As well as, It is the process to empower schools and students to improve their finance condition. Furthermore, Government and different Private organization provides student loan to empower students. With the easy steps every student who is studying secondary and above classes can apply for the loan. With the proper necessity of loans authority officials provides loan.

So any student who want to continue with his study and want to take loan can apply for the loan. Besides it, A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses

What is Terms and Conditions for Student Loan ?

To get a student loan you have to fulfill some terms and conditions like as education qualification and others.

Documents required for an Educational Loan:

Duly-filled application form.
2 passport size photographs.
Graduation, Secondary School Certificate, or High School Certificate or mark sheets.
KYC documents that include ID, address, and age proof.
Signature Proof.
Income Proof of parents or guardian.

Process of Student Loan

A collateral is asked for loan exceeding Rs 7.5 lakh. Once the loan application is accepted, the banks disburse the amount directly to the college/university as per the given fees structure. The banks uses the Marginal Cost of Funds based Lending Rate (MCLR), plus an additional spread to set an interest rate.

There are four types of federal student loans available:

Direct subsidized loans.
Direct unsubsidized loans.
Further all, Direct PLUS loans.
Direct consolidation loans.

How to repay the Student Loan ?

Here are the easy way with this you can quit your education loan and student loan. With these you can forgiveness your loan. So follow these steps to quit a loan-

Education Loan Repayment Methods

Education loan EMIs.
Again all, Education loan part-payment.
Education loan pre-payment or foreclosure.
Repay Education Loan by Cheque/DD (Demand Draft repayment)
Education loan repayment by cash.
Automated EMI payments (ECS/NACH) of student loans.
How to Repay Education Loan?

How much Subsidy off on Student Loan ?

Subsidy is admissible only once either for undergraduate or post graduate or integrated course. Under the scheme, education Ioan is provided without any collateral security and third-party guarantee and for a maximum amount of Rs. 7.5 lakhs. Education Loans taken under IBA Model Education Loan Scheme.

Education Loan v/s Student Loan

An education loan offers a lower interest rate as compared to a personal loan. If you are qualified for a government-subsidized loan, you will have to pay even lower interest rates. Education loan generally offers a longer repayment tenure that can go up to 20 years.

The Ministry of HRD, GOI has launched a scheme of Interest Subsidy on educational loans for economically weaker sections of the society. The students who satisfy all the following parameters would only be eligible for the interest subsidy: The scheme is applicable for inland studies only.

What is time period for a student loan repayment ?

The repayment period is generally between 5 and 7 years, but can be extended beyond that as well. During the course period, the bank charges simple interest rate on the loan. The payment of simple interest during the course period lessens the equated monthly installment (EMI) burden on the student for future repayments.

What is the process of Mortgage in Student Loan ?

Generally student loan free. There is no mortgage requirement for the loan. But some banks use mortgage terms like as When deciding whether to approve you for a mortgage, lenders look at how much debt you already have compared with your pretax income. That’s called your debt-to-income ratio, known as DTI, and it’s calculated based on monthly debt payments.

Education Qualification to Get a Student Loan ?

The age of the candidate must fall within the bracket of 18 to 35 years during loan application. He/she must be undergoing a graduate/postgraduate degree or a PG diploma. The applicant should have a secured admission in a college or university affiliated by UGC/AICTE/Govt.

How much Money Can A Student Get via Student Loan Process ?

One of the most vital questions that you may wonder about is the amount of the educational loan. In general, you can get up to 4 lakhs of educational loan for higher studies without any collateral. Under education loan scheme, you can get a maximum of 15 lakhs for studies in India and more 25 lakhs for abroad studies.

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