Loans Student

Education is a primary ingredient for the development of any country. It is central to the Human Resource Development. Government is taking heed that this basic necessity, to build a healthy society is taken care of with the help of various government aided institutions. Though primary education is a must in today’s world, a survey of the present education system will prove that higher education is gradually moving into the domains of the private sector. As an obvious result, students with promising capabilities are falling short of pursuing higher studies owing to the increasing expenses. Thus the need for institutions to provide funds for pursuing higher studies and thus the term "loans student".

In the past, a story of a poor chap unable to pursue his career due to lack of funds was very common. Now Government, along with various private sectors have taken steps that none such deserving student is denied an opportunity to pursue higher education. The scope of education has widened not only in India but also abroad and along with it, has popped up various institutions, commercial banks to provide loans to such students. Students’ loans or loans for education should be considered to be an investment for the development of national prosperity and national economy, as students form the pillars of a strong, economically sound, literate and healthy society of tomorrow.

The loans granted are meant for poor students so that they can undertake basic education and for those meritorious students, who want to pursue higher or technical or professional education. Education loans are of two types. Loans Student in India and loans for studying abroad. For studies in India the maximum amount of loan which can be sanctioned is Rs7.5 lacs and for studies abroad the maximum amount is Rs15 lacs. Initially what seemed to be a dream is now at the fingertips of the students. All they need to do is to apply for a loan and it should be noted that any application for loan can not be rejected without the concurrence of the next higher authority. Just the two-word "loans student" has opened new vistas for students who dream to have a career abroad or as stated even in their own country

Now the question is, what should be the student eligibility to get the loan sanctioned? The student should be a citizen of the country and the admission so acquired in the particular course should be a secured one by the virtue of an Entrance examination. The student should also secure the minimum percentage in the Entrance examination as stated by the particular bank or institution granting the loan. Now, whenever the term loan comes to mind, the immediate term to follow is security. Government and the other private sectors who grant such education loans have made the whole process of student’s loan customer friendly. Different institutions have different systems pertaining to their policy discretion. For instance, there is no need of any security up to Rs2 lacs but exceeding Rs2 lacs will have to be supported by a collateral security of cent percent of the loan amount. The security may be in form of land, government securities or any policy or bank deposits in the name of student or parent and so on. Another term associated with loan is margin. What is this margin? Margin is the difference between market value of loan collateral and face value of Loans Student. For instance, according to a general outline lay out for the assistance of the commercial banks margin up to Rs2 lacs is nil. If it’s above Rs2 lacs, studies in India 15%, studies abroad 25%.

The rate of interest is also dependent on the policy so granted by various banks. For Rs2 lacs the rate of interest will be only PLR (Prime Lending Rate) but above Rs2 lacs it will be PLR plus 1%. The rate of interest is to be debited on quarterly or half yearly basis during the Repayment holiday or Moratorium period. Now what is this Moratorium or Repayment holiday? The Course period plus one-year or six months after getting job is known as the Repayment or Moratorium period. There’s one thing that should be taken care of, a penal interest 2% will be charged above Rs2 lacs for the overdue amount and overdue period. Now what does the student do if he is unable to complete the course within the scheduled time? An extension period of two years may be granted if the student is unable to complete the course.If by any chance, the student is unable to complete the course cause of certain reasons that lies beyond his control then, an extension may be granted by the sanctioning authority at their discretion. The banks maintain a contact with the college or university authority to obtain a progress report at regular intervals to keep a track of performance of the student who have availed Loans Student. Sometimes the foreign university may ask from the student a capability certificate duly issued by the bank to ensure that the sponsor of the student is capable of meeting the course expenses till its completion. In such cases, the respective bank issues a capability certificate. Apart from it the bank itself may ask for a declaration or an affidavit stating that no other loans are availed from any other banks.

Expenses that fall within the domain of the loan sanctioned includes course fee, examination/library/laboratory fee, purchase of books and equipments expenses, travel expenses, passage money for studies abroad and all the other necessary expenses to complete the course like study tours, project work and so on. Last but not the least the loan applications have to be disposed within fifteen days to one month.

"Loans Student" is a very common term today. Though a very short term, still it can be a key to ones dream world where wishes are fulfilled and dreams become a reality. By the virtue of loans nothing is impossible now. Students can aspire to dream of a career abroad, can dream of pursuing higher studies, even though money problem try to haunt them and obstruct them from moving ahead. The terms and conditions are made flexible taking into account the customer friendliness of each institution. All that a student needs to do to achieve his dream in today’s world is to become a "loans student" from a student.

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