A student loan is a type of loan designed to help students finance the costs of postsecondary education and related expenses, such as tuition, books, and living expenses. When compared to other loan types, it may have a lower interest rate and a longer repayment period. At the same time, the borrower is still in school.
Student Loan Types
There are several educational loans available for various sorts of educational programmes. Student loans are classified into two types:
Domestic education loans are provided for courses taken within the country. After the application meets certain qualifying conditions, the lenders will sanction the loan if the student has a guaranteed seat at an institution that meets the lenders’ standards.
Education Loans for Foreign Studies- For academic programs that take place outside of the country’s borders. For the loan to be granted, the applicant must have a guaranteed space in a college or university on the list of approved educational institutions, just as domestic education loans.
Based on the educational path
Graduate Student Loans: Students who plan to continue their studies at domestic institutions are eligible for a student loan. Students pursuing postgraduate degrees are specifically eligible for these loans. To be eligible for this loan, students must have completed their undergraduate degree.
Undergraduate Education Loans: These loans support students in meeting the costs of pursuing undergraduate degrees. An undergraduate program can take three to five years, after which students have numerous job opportunities.
Professional Education Loans: Many NBFCs and financial institutions provided loans to students who wished to pursue a career in education.
Loan-Eligible Courses
Undergraduate courses in professional or technical fields provided by reputable universities.
For post-graduation an MCA, MBA, MS, or a comparable degree.
Providing protection
Giving up some investment to serve as security for the bank. If you are unable to pay back the loan, the bank has the authority to sell these possessions to recoup the money you owe them. Typically, for loans up to a specific amount, you are not obliged to provide security (differs from bank to bank). The amount shall be backed by an adequate third-party guarantee. For larger loans, it would be ideal if you provided 100% collateral security in the form of property, bank fixed deposits, etc.
Required Documents for Student Loans
- Banking records
- evidence of address
- signature proof
- ID documents including a passport, driver’s license, and citizenship proof
- correctly filled out loan application
Student Loan Repayment
It is preferable to obtain a student loan if you do not have enough money to pay for higher education. The problem emerges when you have to repay the borrowed amount plus interest. There is the possibility of going into debt. We offer a site dedicated to quickly repaying student loans to assist you in the process. A student loan is expected to be repaid in 5-7 years after repayment begins. If a student is unable to complete the course within the time frame specified, an additional two years may be granted. You typically have up to ten years to repay the entire debt.
