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

A. No, education loans for courses in India are usually not as generous as those for 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).

Q. Is it possible to acquire a student loan without pledging any assets as security?

A. Almost all banks and other education loan lenders 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.

Q. Is the loan available in the currency of the country where the course is being taken?

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

Q. Would the education loan moratorium be renewed if I wanted to take a break from my studies?

A. 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.

Q. Can NRIs obtain education loans from Indian banks?

A. One of the eligibility criteria for education loans granted by Indian banks and other financial institutions is that the individual is an Indian citizen. This means that 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.

Q. What factors do lenders evaluate when approving a loan?

A. 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

Q. What happens if I drop out of the course and find work during the grace period?

A. If you decide to leave your degree in the middle, you must begin repaying your loan as soon as you find work.

Q. Can I transfer my student loan to a bank that offers cheaper interest rates?

A. 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.

Q. Do all college loans cover the entire cost of education?

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

Q. What other expenses are covered by student loans?

A. The following are some of the additional costs paid by student loans:

• Fees for the hostel

• Fees for exams, laboratories, and libraries

• Books, uniforms, projects, and other expenses

• Expenses associated with studying abroad

• Deposits that the educational institution requires