Welcome back to Loanflix. We are here with the 11th episode- ‘ Education loan for abroad: Public banks Vs. Private banks/NBFCs’. Are you still confused about choosing between a public bank and a private bank/NBFC? Every loan applicant faces a series of doubts when it comes to deciding on a lender of an education loan for abroad studies. But which parameters are to be compared in such situations? Know all about it in this 11th episode.
Loanflix is the most comprehensive web-series on abroad education loans. The motive is to empower students and their guardians so that they can take an informed decision about the education loan
Let's take a short look at what this episode will cover. Link to the video is given below.
Parameter 1: Interest Rates
Interest rates are considered to be the most essential parameter for any education loan for abroad. But is it the only factor? Has it ever occurred to you to compare the interest rates of a government bank education loan scheme to those of private banks/NBFCs? Don’t worry if you haven’t. This section of the episode will cover it for you. So grab a notepad and write away!
Parameter 2: Processing fees
This is the topmost parameter that many applicants often tend to overlook. How many of you think that processing fees play an important role in helping you determine which lender to opt for? Before grabbing that loan application form from an NBFC, take a look at the processing fees charged by public banks. Damini, the Co-founder of WeMakeScholars and our speaker in this episode, tells you why processing fees are one of the deciding factors in the education loan process.
Parameter 3: Repayment and Moratorium period- Education loan for abroad
What is a moratorium period when coming to an education loan for abroad studies? What is exactly covered by this term? Many education loan applicants are still unclear on this term and often tend to mistake moratorium period with the loan repayment period. Our speaker for this episode, Damini, tells you the exact definition of the moratorium period, what are the policies of public banks and NBFCs regarding fee payment during this period, etc.
Parameter 4: Loan Insurance
What is the importance of loan insurance in an education loan for abroad? Is it mandatory to opt for loan insurance for collateral education loans? What are the policies of private banks and NBFCs regarding the same? The answers to all these questions and more are discussed in this part.
Parameter 5: Processing time
What makes NBFCs the first choice for unsecured education loan applicants? Why do public banks take a longer processing time? Get your concepts cleared in this part of the episode.
Parameter 6: Co-Applicant Profile
Many applicants are unaware of the eligibility criteria for a co-applicant in a public bank and a private bank/NBFC. Is it true that nationalized banks do not accept co-applicants who are retired, are farmers, unemployed, those without a proper ITR? While going for a collateral education loan for abroad, who are accepted as co-applicants by NBFCs/private banks? All such doubts will be cleared in this section of the episode.
Parameter 7: Embassy/University Acceptability
Is your bank accepted by the embassy of the country where you plan to study? Is it accepted by your university? Which banks/financial institutions are accepted by universities and embassies? Are NBFCs a safe bet for a collateral education loan for abroad? Uncover the truth behind these questions by looking out for this part of the episode.
Like all our previous episodes, our hack for this episode will help you demystify a common myth surrounding collateral education loans from public banks. Listen to Damini, the speaker for this episode, and the co-founder of WeMakeScholars as she clears the air around a major myth regarding collateral education loans. To know more about how you can use this hack to your benefit, look out for this portion of the episode.
We hope that by the end of this episode, you might get a clear idea of the different parameters to be considered while deciding on the right lender while applying for an education loan for abroad. Know more on whether most lenders charge you with simple interest or compound interest while repaying an abroad education loan, in the 12th episode, titled, 'Education loan interest rate is Simple or compound? Are most of the lenders fooling you?' If you find these videos helpful, do like them and subscribe to our YouTube channel. Watch out events section of our website to avoid missing information about the future episodes of Loanflix.
Date And Time
Timezone : (GMT+05:30) Chennai
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Damini is the Cofounder & CEO of WeMakeScholars.com. It’s a BITS start up supported and funded under the IT Ministry, Govt. of India. The organisation’s motive is to offer unbiased collateral/non-collateral based education loan support to students who are planning for studying abroad. As this initiative is under the digital India campaign, it's at free of cost. WMS works with 14+ banks (public/pvt) in India and help you get the best edu loan matching your profile.
Prior to launching WeMakeScholars, Damini had done her masters from the University of Sheffield, UK. Her education was funded under the Developing Solutions Masters Scholarship which covered her full tuition fee ($ 38,000). Damini is also a gold medalist in her Bachelors and also won the outstanding student award from the Vice president of India.
She was the speaker at TiECon 2016 at Silicon valley, San Francisco in the social entrepreneurship segment. She was also covered in the Asian Entrepreneur magazine in the “Women on Top in Tech”, a global series of Women Founders, CEOs & Leaders in Tech.