Tag Archives: Loan Finance for Education

Loan Finance for Education

 

These days Education appears to be a no longer a noble service done to the society with more private institutions running them for name, fame and profit. It has become more of a business oriented concept where institutions are trying to earn maximum commercial profit out of student fees. Seeking higher education has become more costly.

Not everyone is lucky enough to get a scholarship, as they are less and are extremely competitive. For a family with average income levels it is not going to be easy to send their children to a well-established university for higher education. This is where educational loans come into the play as effective means of raising quick money. These loans can be used to pay fees until the student completes his course. The repayment obligation onsets only after the student complete the course.

Almost every bank in the country provides education loans. These loans are usually not provided for school education but are available only for graduation or for college education. There are also formalities to be completed for availing for loans for specific courses. The student’s past performance in studies may also be evaluated before providing education loans. These loans will not be given in cash but will be transferred to a bank account of the student from where the college fees can be remitted. Intimation from the university or college where education is sought may also be required before the loan is sanctioned.

And it becomes the responsibility of the students and their parents to repay the loan once they get a good job using their education and many financial institutions provide flexible repaying options for these education loans obtained. And when the student is unable to repay in the worst cases they are even offered loan settlement schemes under which they can negotiate time or interest in repaying the loan.