Education plays a very important in a person’s life. It is a process through which a person becomes what he/she wanted to become. Education helps an individual to develop personality and confidence. It moulds or shapes a person and imparts them with morals and values. An educated man knows what is right and what is wrong. He knows when to speak and when to keep his mouth shut. This is all because of education.
We all want to study but some wanted to
study abroad. Studying in foreign and getting education is important in many
ways:
1. Firstly,
a person studying in abroad becomes totally independent. This is because there
is no one with him in the new country and an individual will get to know
themselves better. This journey should ne embrace by anyone who gets to study
abroad.
2. Studying
abroad also helps an individual to have a command over foreign language. In
order to learn this individual had to do hard work.
3. Thirdly, foreign education in addition to
improving language skills also improves communication skills. An individual
learn to bridge the gap and also know how the people living there communicate
in day-today life. This will help them to know about their culture.
4. Fourthly,
when an individual return home with foreign education he/she has greater career
opportunities.
5. Studying
abroad also get an individual the experience of new education system. This is
because the classes which an individual takes in foreign can be way different
from what they have experienced in their own country.
So, foreign education
can be important in many ways. But getting abroad and studying there is not an
easy task. Many banks provide education loan for foreign studies. There are
various schemes which are offered by Indian banks which depend mainly on the
type of institution and the course which is selected by the student. Education
loans also covered the cost of boarding, tuition fees, travel and other related
cost of the student.
There are various
features of education loans. They are:
1. Any
individual whose age is between 18 and 35 years can apply for education loan.
2. Education
loans can be provided for various courses like management, engineering,
graduate, post graduate, arts, hotel management etc.
3. An
individual has to bring in a margin of 5 to 15% for loans which is taken for
foreign studies.
4. Borrowers
have to pay the interest along with the principal amount when the loan tenure
starts.
5. Education
loan is generally repaid with monthly instalments through post-dated cheques.
6. Banks
provide education loan for a period of seven years.
7. For
an education-loan to get sanctioned there should be a co-applicant.
Co-applicant could be parents, siblings or any other family members.
8. No
security has to be submitted for education loan taken up to Rs. 4 lakhs.
There are many formalities which need to be
completed. Education loan for abroad usually covers:
1. Tuition
fees
2. Examination
charges, library, laboratory and hostel charges.
3. Cost
of purchasing books, equipment, instruments and uniform.
4. Travel
expenses
5. Caution
money, refundable deposit etc.
6. Project
work, study tours etc.
Documents required for studying abroad:
1. Mark
sheet for last qualifying examination for school.
2. Proof
of admission to the course.
3. Schedule
of expenses for the course.
4. Cost
of letter confirming scholarship, if any.
5. Passport
size photographs.
6. Income
tax assessment order.
There
are many banks in India which provide education loan. They are as follows:
1. SBI
{STATE BANK OF INDIA}: SBI offers term loan to Indian students who wants to
study abroad. The loan which is offered by SBI covers almost all expenses like
tuition fees, travelling expenses and many others. The loan amount provided is
up to a maximum of RS. 30 Lakhs, with a collateral security required only for
loans above RS. 7.5 Lakhs. SBI also offers a moratorium period during which the
entire interest can be repaid. The interest rate which is provided by SBI is
2%.
2. AXIS
BANK: Axis bank also offers education loan. They offer education loan at
competitive interest rates for Indian students. Axis bank offers minimum loan
of RS. 20 LAKHS which covers hotel fees, tuition fees, book costs etc.
Education loans are sanctioned by axis bank for a period of fifteen days. Axis
bank may also ask for LIC policy. The interest rate ranges from 16.50 to 17.50%.