The 14th episode of Loanflix, titled, ‘ Margin Money: Understanding the concepts’ is here. In this episode, we talk about the loan margin, which is an important aspect of the abroad education loan process. This episode also clarifies how understanding the concept of loan margin may prove to be extremely beneficial to you in the long run. Read on for more information about what is in this episode. You can find the episode at the end of this event description.
So, what is margin money or loan margin? In this episode, the speaker, Damini Mahajan who is also the co-founder of WeMakeScholars, explains this concept in detail with the help of many examples.
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.
Definition of Loan margin
What exactly do banks mean to convey when they offer you a 90% loan margin? Most public bank officials only state margin money in their documents and never bother to explain to students what exactly it is that the term covers. The episode begins with the very basics, with Damini explaining the exact definition of margin money with the help of examples.
How is margin money calculated?
What is the exact logic behind banks offering margin money? How do they calculate margin money? These questions may have surely crossed your mind while applying for an abroad education loan. Know all about it in this part of the 14th episode.
What goes on in the mind of a student while applying for an abroad education loan?
We go a step ahead in this part of the episode by explaining the thought process of students who generally apply for a loan amount that is lesser than their total expenses. Why do they apply for a lesser amount as a loan? How do banks interpret this action? Know all about it in this section of the episode.
How do banks generally calculate the margin money when a student applies for a lesser amount as a loan?
What happens when a student applies for an amount that is way less than the total expenses mentioned in his/her admit letter/I-20? Does the loan margin increase or decrease? Or does it remain the same? How do the banks’ terms confuse their loan applicants? At what point is a student likely to misunderstand their banks’ terms? Know the answers to these questions in this portion of the 14th episode.
The exact logic behind loan margin from the banks’ perspective
After you have heard the views of both, the student and the bank regarding loan margin, you must be wondering what exactly happens once the loan amount is disbursed from the bank. Is the entire loan amount disbursed to your loan account at once? Do you, as an applicant have to arrange for the margin money right away? Do not worry if these questions are bugging you by this point in the video. Damini will clear it all for you in this section of the episode.
How about banks that offer 100% loan margin?
You may be aware of certain banks that offer a 100% loan margin to their loan applicants. So does it mean that the abroad education loan will cover your entire expenses for the duration of the course? Do you still have to pay margin money in this case? Clear all these doubts in this part of the episode.
Can you reduce the loan margin in such cases?
Will the loan margin vary for collateral-based education loans? Does your collateral value affect the margin money? Again, does the loan margin increase or decrease in such cases? Are there ways to reduce your loan margin in such a case? Know the answers to these questions as you near the end of this episode.
Our speaker ends this episode by telling you about a very compelling story of a student from Mumbai, who got into a tricky situation because he misunderstood his bank’s loan margin terms and how, in the end, the WeMakeScholars team had to finally intervene in order to get him out of the situation.
After watching this episode, we are sure that you will be better informed about the margin money. So, the next time you or someone you know applies for an abroad education loan, there will be no scope for any confusion. Stay tuned for our next episode, in which our team tells you about something very beneficial to you as a loan applicant. We explain the Section 80 E of the Income Tax Act in the 15th episode 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.