Perception of Beneficiaries on Education Loan
*Apeksha **Ankit sunil
INTRODUCTION
A loan is when you borrow money from a friend, a bank, or another financial organization in exchange for repayment of the principal plus interest in the future. The main is the amount you borrowed, while the interest is the fee you were charged for taking out the loan.
Education loan is nothing but money borrowed by students from banks to covered their educational expenses , it covers a wide range of expenses such as tuition fees, living expenses while the beneficiaries is in the process of pursuing degree, books and supplies, food, laptop etc.
The quality education is very important for successful and complete life. Keeping this is in mind the parents who want to give their children a quality and best possible education, they save their money in best possible way like in fixed deposits, mutual fund etc. for long term but still there is shortage of funds at that point education loan plays an important role to fill the gap between the shortage students requirement and money, Because the cost of education is increasing rapidly, in fact the cost of studying at reputed institution is already quite high. An education loan covers the basic course cost and other expenses related to college such as accommodation, food, exam charges, books, laptop etc. The students are the main borrowers and a parents, siblings, spouse can be the co-applicant.
The education loan offered to the students who want to pursue their education including higher education by their own means not depending on parents or who are not able to pay course fees from their parents income. The loan amount offered for studies to students is varies from one bank to another. It covers graduation, post-graduation in all fields like medical, engineering, management, hotel management, architecture also it covers full-time, part-time and vocational courses also.
The banks can give loan up to 100% of the loan depending on the loan amount applied for, currently for up to 4 lakhs loan amount, there is no margin money required. The bank ask for collateral if your loan amount is above rupees 7.5 lakhs and bank do not ask for any collateral for loan up to rupees 4 lakhs. Also for loan amount 4 lakhs up to 7.5 lakhs a third party guarantor is required. Once a loan application is accepted then bank disburse loan amount then bank disburse loan directly to the college as per the given fees structure.
