I am 45 now, and as the winter chill settles in, a simple act—oiling my head after a shower—triggered a cascade of memories spanning three decades. When I was a boy in a small town in Uttar Pradesh, the ritual of a weekly, sometimes daily, head massage with oil was as common as breathing. My favorite was the potent, earthy scent of mustard oil . I remember visiting our local vaid ji (traditional practitioner), who stressed the importance of this practice, lamenting even then that fewer people were keeping it up. Fast forward to adulthood, and my simple habit met the sharp reality of changing cultural norms. My wife, from a different background, and her circle found the idea of oiled hair "un-stylish." Even when I switched to the fragrant, dark luster of amla oil, the gentle teasing and continuous pressure to conform chipped away at my resolve. Now, my cherished ritual is relegated to an occasional, quick application, washed out within hours. Where Did the Oil Go? As I drov...
Education is important for a fulfilling and prosperous life.
However, in today’s age, one already needs to
be prosperous to pursue good quality education! Say thanks to the sky high
tuition fees and related expenses, education is beyond reach for even the most
brilliant and capable students.
Had education loans not been there, more dreams
to study overseas must have died in the heart.
Availing education loan for overseas education
has helped fulfil many dreams by providing the necessary financial support. Here
we magnify some challenges surrounding overseas education loan under the
microscope and suggest probable solutions:
CIBIL Score and Your
Budget Issues
First get the exact picture of expenditure this
includes tuition fees, living costs, travel and miscellaneous expenses. Now,
find out how much you want to borrow and how much can be given to you.
The answer to how much money a bank can lend
you depends on your CIBIL score. Low credit score or no credit history means
the bank will lend you less money.
Solution: Find a person in your family or a
relative who has strong credit history. Convince that person to be co-applicant
in your loan application. Banks trust people with strong credit history, after
all they want their money back, and the chances of your loan approval will
increase.
Loan Enquires and
Lender Landscape
According to a reputed bank, the number of enquires affect the
credit score of a person. So, to find the best deal, if you send queries to
multiple banks, be cautious, it will negatively affect your score.
Talking about different banks, options include
private banks, public sector banks and non-banking financial sectors (NBFC),
each option with its pros and cons. Public banks are stricter and will ask for
lots of documents, but are an attraction due to low interest rates.
Private Banks, as they are looking for
business, is liberal in granting loans, but the trap is they have higher
interest rates.
Applicants who are not strong in their
documentation can pick private banks whereas those who feel they have complete
documents can choose public banks as lender.
Applicant’s Academic
Performance and Documentation
Consider this how and why someone unknown to
you can lend you thousands of rupees. It will be possible only when the lender
gets the assurance that you are capable enough to return.
It the same with us, isn’t it, when we lend
money to someone. We want to make sure the person can return the money back.
This assurance is given through your academic
performance and the documents you provide. It shows that you have the
commitment and potential to complete the program and are responsible enough.
Proof of income, admission letters, evidence of
extracurricular activities, and statements of purpose are just some of the many
things that can be added to facilitate easy loan approval.
Loan Types and
Repayment
Just like we want loan, there are lenders who
are looking for customers to lend money.
This is the reason for the different
combinations of loan types, interest rates and repayment methods, which are
available. It is done to attract customers with different profiles.
If you have property or some asset to provide
as security, than loan can be offered at a lower interest rate, termed as
secured loans.
Applicants who are asking for loan just on a
promise that they will pay it, without any form of financial security, pose as
greater risk for the lenders, which raises the interest rate, known as
unsecured loans.
Interest rates and repayment methods also come
with many ifs and buts, all directed to suit the end consumer. Pick an EMI
schedule that does not burden your career start.
Deciding at a
Crossroad
The number of loaning options available is
meant to attract, but, unfortunately, it creates confusion as well. The one who
is availing loan for the first time tends to get confused more than arrive at a
solution, with these many factors to consider.
It is like a kid in a confectionary shop, he
can only pick one chocolate, but there are so many varieties available in the
shop.
Talk to someone who has availed loan recently,
understand what his situation was and which loan was availed and why. You can
also talk to a financial advisor or a loan specialist. Discussion with study visa consultants in Gurugram can also be of tremendous use.
Wrapping Up
Education loan connects the most deserving and
brilliant students with the best of studying opportunities. Students with the
desire to study overseas and looking for financial support serve as a good
market for banks and lenders. Using the right techniques students should pick a
loan that fulfils their needs in the best way.
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