Study Loan For Abroad for Executive Courses
Executive courses are specially meant for those individuals who wish to take one extra step towards professional excellence. Getting a study loan for abroad for executive courses is a big task. This is one of the drawbacks of getting a study loan for abroad for executive courses. Due to their ignorance about such courses, a lot of bank officials often hesitate to process applications for a study loan for abroad for executive courses. Getting the opportunity to enrol into an executive course has proved to be a boon to many working professionals who are looking to expand their resume with the help of one. Getting to fund such a course with a study loan for abroad for executive courses seems like an even better idea!
Every episode of Loanflix aims to equip its viewers with sufficient knowledge about the education loan process. Each episode covers almost every aspect of the process in great detail, thus enabling our subscribers to access some of the most well-kept secrets of the process for getting an education loan for abroad. The video to the 35th episode of Loanflix is also made available for you below.
Executive courses are specifically designed for working professionals who wish to pursue their higher education in India or abroad. In case of candidates who wish to enrol into such courses in universities abroad, funding becomes a major factor. If you take a look at the policies of a majority of lenders regarding a study loan for abroad for executive courses, you will realise that a majority of these lenders cater to the financial requirements of students who wish to pursue full-time courses abroad. Hence, finding lenders who provide a study loan for abroad for executive courses, especially becomes difficult for candidates. Before we explore further about a study loan for abroad for executive courses, let us understand the concept of executive courses.
Education Loan Options For Executive Courses
In India, there are two major categories of study abroad education loans, namely, secured loans and education loans without collateral. Secured education loans are purely lent on the basis of collateral security whereas non-collateral education loans are lent without any security. The 11th episode of Loanflix discusses the difference between these two types of study loan for abroad for executive courses in great detail.
The Biggest Advantage of Borrowing a Study Loan For Executive Programs
When it comes to the regular education loan process, it is compulsory for all candidates to name a co-applicant for an education loan. However, naming a co-applicant to get a study loan for abroad for executive courses is not applicable in the case of executive programs. A majority of candidates who apply for executive programs abroad are financially independent at the time of applying for an education loan to aid their studies. Hence, they mostly prefer to repay their education loans on their own. This is why the education loan team at WeMakeScholars had requested their partner banks to eliminate this clause altogether while they were getting the education loan scheme approved.
What makes the entire process of applying for a study loan for executive programs through WeMakeScholars unique is that candidates who have had prior work experience need not name co-applicants for the same when they proceed.
Secured Education Loans For Executive Programs Abroad
Secured loans are lent on the basis of collateral security. Assets belonging to any of the categories can be pledged as collateral security against a study abroad education loan for executive programs.
Immovable property: House, flat, non-agricultural land, a plot with defined boundaries, etc. can be categorised as immovable properties that can be pledged as collateral against a study abroad education loan for executive programs. The second category of assets is liquid security.
Liquid Security: Liquid assets such as Fixed Deposits (FD), life insurance policies borrowed from government-approved lenders, Govt. bonds, etc can also be pledged as collateral against secured education loans in government banks.
Third-party collateral: This option is made available by government banks only to those candidates who do not possess any assets belonging to the above categories. Candidates who do not possess any immovable property of considerable market value or any of the liquid security options can pledge property belonging to a third-party (someone other than your close family members) as collateral against your study abroad education loan. Collateral education loans are mainly lent by all major government banks like the SBI, Bank of Baroda, etc. You can learn all about secured loans in the 2nd episode of Loanflix. So if you are not yet familiar with the entire concept of collateral education loans, you may watch the episode mentioned above.
In order to obtain a collateral education loan for executive courses abroad, the value of the assets being pledged as collateral has to be higher than or equal to the education loan amount.
The benefits of applying for secured education loans for executive courses through WeMakeScholars are numerous. Our financial officers have been able to negotiate and bring down the interest rates to as low as 9% to 9.5%. Also, the final loan amount is very thoughtfully mapped to match candidates’ income profile. For example, if a particular candidate has the earning potential of Rs.50,000 per month, they are eligible to avail secured education loan of up to Rs.15 Lakhs only. However, if their salary falls in the higher bracket, e.g., Rs.90,000 a month, then candidates can avail education loan of up to Rs.25 Lakhs for the same course. The same pattern is applicable to candidates who are self-employed.
In order to know more about how this is done, do get in touch with WeMakeScholars. Our financial team will help you understand the various education loan schemes that suit your particular salary bracket and guide you along the process of applying for an education loan accordingly.
Repayment Terms Of Secured Education Loan Lenders
One of the biggest highlights of borrowing secured study loan for abroad for executive courses from government banks is their flexible education loan repayment terms. All government banks offer a loan holiday to candidates who have availed a study loan for abroad for executive courses.
This loan holiday is also referred to as the moratorium period. Once their loan is disbursed, candidates do not have to start their education loan repayment until their entire course period is over and three months post their course completion. This timeline is applicable only for executive programs. This provision has been granted to candidates so that they could have sufficient time to arrange for funds to repay their study abroad education loan. The interest for this period is calculated on the basis of simple interest.
The total loan tenure granted by government banks for executive courses is 15 years. This does not include the course period. The EMI payment begins after the moratorium period.
Unsecured Education Loans For Executive Courses Abroad
Unsecured education loans are majorly lent by private financial institutions called NBFCs (Non Banking Finance Companies) and many private banks. Many candidates hesitate to resort to secured education loans due to the long processing time and instead opt for unsecured education loans to fund their executive courses abroad. However, one of the biggest challenges faced by students while looking for unsecured education loans to fund executive courses abroad is that very few NBFCs and private banks offer education loans without collateral for such courses.
A majority of these NBFCs and private banks have a list of universities/institutions offering such part-time/online courses for which they provide unsecured education loans. In order to know whether your university/ institution falls in their list, do not hesitate to contact the financial team of WeMakeScholars for the same.
Most private banks and NBFCs offer interest rates that fall anywhere between 11.9% to 14.5%. The processing fees charged by these financial companies is also higher than that charged by most government banks for secured education loans. Generally, it varies between 0.9% to 2% of the total education loan amount.
Repayment Terms Set For Unsecured Study Abroad Education Loan by NBFCs
Unlike government banks, NBFCs do not grant any loan holiday to candidates. The candidates are expected to begin paying the interest amount from the very next month of their education loan disbursement. NBFCs grant a maximum of 10 years’ loan tenure. This includes the course period as well.
What are the Expenses Covered by a Typical Study Loan For Abroad For Executive Courses?
Before you begin looking for education loan schemes to fund your executive course abroad, you need to understand that a typical education loan, be it secured or unsecured, mainly covers two important expenses; the tuition fees and the living costs.
Living costs or living expenses refer to all the expenses that you might incur while studying abroad which includes your accommodation costs, travel expenses, health insurance if the university has mentioned the requirement of one. If you are required to appear for a qualifying exam in a different part of the country, then the expenses for the same will also be catered for by the education loan.
Challenges Faced By Candidates In The Process of Applying For a Study Loan For Abroad
Many candidates who have applied for a study loan for abroad for executive courses have had to tackle rejection from a lot of lenders. This is especially true in the case of government banks where the bank officials are least aware of the courses that are eligible for education loans. Since the number of candidates opting for executive courses has started increasing only recently, many government bank officials sometimes reject education loan applications submitted for the purpose of funding such courses.
Most government banks focus on other categories of loans such as personal loans and home loans. Hence, when a candidate approaches any such banks with an application for an education loan to fund unconventional courses such as this one, their officials are seldom aware of the provisions of a typical education loan scheme offered by their bank.
At WeMakeScholars, the financial team has a good grasp on the education loan schemes introduced by all types of lenders and have been able to help candidates get their study loan for abroad for executive courses even in the most difficult situations. Hence, if you are looking to fund your executive course abroad with the help of an education loan, do get in touch with our team today.
Borrowing an education loan to fund studies abroad, despite the nature of the said course, is a major financial decision. Hence, it is very important to choose the lender after having conducted a thorough analysis of their lending policies and terms and conditions. Do stay tuned for the next blog, which will tell you all about the requirements that candidates are supposed to meet in order to fund their commercial pilot’s licence course abroad.
Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it is free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others.