MS in US Now Becomes Easier with GyanDhan’s Education Loan for Abroad Studies without Collateral
Many students aspire to get into their dream universities in the USA for a Masters in Science degree. However, due to the complicated process of getting foreign education loan, many satisfy themselves with a mere job in India.
Why should students kill their aspirations? To help students get admissions in their choice of university, GyanDhan has developed a novel credit strategy to offer finances at lesser costs to all aspiring graduates.
Why Apply For A Loan?
The overall cost that will be incurred by an Indian including the fees for MS in the USA will be around $65,000- $70,000. Considering the high exchange value, a considerable number of Indians need to apply for educations loans, especially from mid-income families.
Taking a loan is a liability in itself, and therefore students need to be provided with hassle-free and simple education loans.
The Significance of Collaterals as Security
A number of PSUs, private banking institutions and other financial corporation’s offer education loans at varied rates of interest. Most of them offer loans up to four lakhs without the need for arranging any collateral by the borrower.
However, for a credit limit crossing 7.5 lakhs, most organizations ask for a deposit of any security as collateral. This is to handle the NPAs i.e. the Non-Performing Assets in case the borrower defaults on the loan payment.
Collaterals are a risky business, and many get uncomfortable at the thought of taking a loan against their personal assets as security.
But worry not, GyanDhan is the only financial service provider that makes it possible to get study abroad education loan from India banks!
Existing Education Loans To Study Abroad Offered By Banks
The existing Banking and Non-Banking financial organizations offer education loans at differing interest rates. You can look up to their personal websites to understand how to get education loan from banks. Couple of examples:
Bank of Baroda, one of the largest banking institutions in our country, offers education loans of up to INR 20 lakhs. They charge an interest of about 12% for all loans above the INR 4 lakhs ceiling.
Canara Bank has a comparatively smoother education loan plan. It provides loans up to INR 20 lakhs. For loans between 4 and 7.5 lakhs, the interest charged is 12%. However, for loans amounting to more than 7.5 lakhs, the interest rate is 9.5%
However, remember that all these organizations make collaterals compulsory if your principal amount exceeds four lakhs. Also, for female candidates, a concession of 0.50% is offered.
Therefore, other Non-Banking Financial Corporations and private lenders have emerged to provide loans without collateral.
Get Education Loan without Collateral
Non-bank finance companies, such as Credila (a part of HDFC Ltd) and Avanse (a subsidiary of DHFL), offer loans without collateral but interest rates are usually on the higher side. They also charge a 1%-2% processing fee.
Now this is where, GyanDhan, comes into the picture. It offers loans without collateral at 11.75%-13%. Even a difference of one percent in rate of interest is enough to make a huge difference in the lives of those students opting for it. What’s more – GyanDhan doesn’t charge any processing fee!
Also, if students can afford to keep their assets as collateral, then interest rates for loans availed through GyanDhan start from 10.25% for boys and 9.75% for girls. Whereas, NBFCs typically continue their interest rate at 12%-13.5% even with collateral.
Student Loans from foreign institutions
One can avail of the International Student Loans offered to international students in the USA Universities. However, here the borrower needs to have a co-signer as a guarantee.
Since a co-Signer needs to be a permanent USA citizen with good credit record who is obliged to repay the loan in an event of the borrower defaulting, it is difficult to find a co-Signer in the USA.
A few foreign organizations have started offering student loans without requiring co-signers. However the processing fee is typically quite high (2%-5%), and the $-based interest rates are high as well (9%-12% typically). If you are thinking that 9% in USD is a low-interest rate – think again! 9% in USD is comparable to 15% in INR. We explain the rationale in this post.
So What Will You Choose?
Thus, it has become clear as to which organization would understand your dreams well and wholeheartedly support you in achieving it. This new start-up makes for an interesting choice. You can know more about it on GyanDhan’s website.
This will be the best education loan that you can avail of and so start the process of realizing your dream. Together, let’s make education accessible to all.
GyanDhan is an education financing marketplace with an aim to equalize and expand access to higher education.