Regarding Educational Loan

[thisisripunjay]

I would like to get some doubts cleared regarding Educational Loan. One of my cousin is thinking of getting an educational loan of around 2 Lakh for private coaching. Can she get Educational loan for that? Or it will be another kind of loan.

Now the questions.

1. I'd like to know If loan can be taken in her name? Or it should be taken in Parents name? She got around 770 CIBIL.

2. When to repay the Loan after getting? Will it be monthly EMI or she has to pay after getting Job?

3. What will be approximate interest rate and tenure?

4. Does she/parents have to mention any collateral?

 

[beingmohit]

From what I know, banks do not finance loans for private coaching. Normally, every bank has a list of institutes, for which they provide edu loans. Your friend could opt for a personal loan instead. To answer your other questions
1. If your friend does not have a job, her parents may have to opt for a personal loan. If she manages to get an edu loan, her parents can be the guarantors.
2. For educational degrees in colleges, banks generally have a policy allowing you to start repayment as soon as you want. However, you have to start repayment at least 6 months after degree completion (the time period may vary for different banks), or as soon as you get a job.
3. I think the interest rates are higher now, could be north of 13-14%. You could opt for a 5-year tenure, although I think banks allow some flexibility in this regard
4. Till a few years back, banks did not ask for collateral as long as the edu loan is of less than INR 5L

You should suggest your friend to visit a few banks and enquire.

 

[thisisripunjay]

From what I know, banks do not finance loans for private coaching. Normally, every bank has a list of institutes, for which they provide edu loans. Your friend could opt for a personal loan instead. To answer your other questions
1. If your friend does not have a job, her parents may have to opt for a personal loan. If she manages to get an edu loan, her parents can be the guarantors.
2. For educational degrees in colleges, banks generally have a policy allowing you to start repayment as soon as you want. However, you have to start repayment at least 6 months after degree completion (the time period may vary for different banks), or as soon as you get a job.
3. I think the interest rates are higher now, could be north of 13-14%. You could opt for a 5-year tenure, although I think banks allow some flexibility in this regard
4. Till a few years back, banks did not ask for collateral as long as the edu loan is of less that INR 5L

Thank you. However, if they opt for a personal loan, Does they have to start repaying from the next month? Or there be any delay like after the coaching finishes etc.?

 

[beingmohit]

Thank you. However, if they opt for a personal loan, Does they have to start repaying from the next month? Or there be any delay like after the coaching finishes etc.?

For personal loans, the repayment normally starts the next month onwards