FAQs | Education Loan for Masters | iSchoolConnect
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Updated on Nov 15, 2022

Question 1: What is the maximum loan amount for a Master's degree?

Answer: The overall loan amount is determined by the loan you seek. You can acquire up to INR 1.5 crore in secured loans, depending on the collateral value. You can acquire up to INR 40 lakhs (or perhaps more) in unsecured loans based on the co-income, the applicant's desired college, goal course, and other factors.

Question 2: What is the time frame for repaying a master's degree college loan?

Answer: Typically, such loans have a five- to seven-year repayment period. The best method is to save at least 12-18 months' worth of repaying money while you're still in school. You may save a percentage of your earnings as soon as you begin working.

Question 3: What are the benefits of getting a student loan?

Answer: Yes, you may obtain a tax credit on your interest payments on student loans. The Income Tax Act of 1961's Sections 80C and 80E will apply.

Question 4: Is the GRE required for MS in the United States?

Answer: Yes, you have to answer the GRE to pursue a master's degree in the US. However, the GRE is optional in several countries, such as Australia, Canada, and Europe.

Question 5: Is there any security required?

Answer: Typically, collateral or security is only required for education loans over a certain amount, which varies by bank.

Question 6: Can I add a co-applicant to my loan?

Answer: A co-applicant is required by several banks for an educational loan. A parent, guardian, spouse, or parent-in-law can all be considered.

Question 7: For the same level course in India and overseas, will I receive the same amount of money on my education loan?

Answer: Education loans for courses in India are usually less generous than comparable-level courses abroad. Higher sums are available for education loans for courses taken outside India, as fees and other expenditures may be higher overseas than in India (which also depends on the educational institution).

Question 8: Can a student loan be acquired without pledging any assets as security?

Answer: Almost all bank and other lender education loans need collateral, including fixed deposits, property, shares, bonds, and other assets. You can get a student loan even if you don't have any collateral.

Question 9: Is the loan available in the currency of the country where the course is being taken?

Answer: Education loans for courses overseas are often paid straight to the educational institution in the country's local currency.

Question 10: Would the education loan moratorium be renewed if I wanted to vacation from my studies?

Answer: The length of the school loan moratorium period varies per lender. However, it is usually for a year or until the borrower finds work or completes the course, whichever comes first. If you decide to take a sabbatical and request a moratorium extension, the bank will determine whether or not to grant it, so it's a good idea to discuss it with your lender.

Question 11: Can NRIs obtain education loans from Indian banks?

Answer: One eligibility criterion for education loans granted by Indian banks and other financial institutions is that the individual is an Indian citizen. Any student who is an Indian citizen can apply for and get a loan from an Indian lender. Collateral or documents that can be used as collateral should be enforceable in India.

Question 12: What factors do lenders evaluate when approving a loan?

Answer: When approving a loan, lenders evaluate the following factors:

  • The course and institute you select 

  • The amount you'll require

  • Your academic achievements

  • Your family's repayment capacity

  • Assets belonging to the family

  • Annual earnings

Question 13: What happens if I drop out of the course and find work during the grace period?

Answer: If you decide to leave your degree in the middle, you must repay your loan as soon as you find work.

Question 14: Can I transfer my student loan to a bank that offers cheaper interest rates?

Answer: You can transfer your student loan from one bank to another. On the other hand, your present bank may charge you a refinance fee. As a result, before changing the loan, all features of the existing and new banks must be considered.

Question 15: Do all college loans cover the entire cost of education?

Answer: Yes, education loans cover the entire cost of education. On the other hand, full coverage may be limited to expenses up to a particular amount. If the expenses exceed the limit, lenders have a buffer.

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