Fast Five – Part-4 | Which Is the Best Bank For An Abroad Education Loan? | Insurance Mandatory??

Welcome back to part 4 of GyanDhan’s QnA series “Fast Five” in which we will try to answer questions on education loans to study abroad. In this video, we answer the following 5 questions related to study abroad loans:

Hello this is aman from channel welcome back to the part 4 of the fast five series under this series we released one video every sunday answering five most frequently asked question by the study abroad community if you have any question that you want to answer regarding a broad education group you can put it in the comment below and you will take it up in the next

Video before we start i would like to remind you to subscribe to this channel so that the next video when we release you can watch it as well so let’s start sorry to say this but there is no best then to take an abroad education the answer to this question depends on your profile i can give you a basic framework with which you can decide which is the best bank

Slash lender for your educational request so how do you analyze this first you need to analyze that whether you have the collateral or not if you have the quality then go with the public sector banks because public sector banks give the lowest interest education loan the difference between a public sector education loan and a private sector education loan is of

Two to three percent you can get a public sector education loan at approximately eight percent or eight point five percent whereas a private sector education loan will start approximately at the rate ten or 10.5 percent so that is the first question that you need to answer whether you have the collateral or not now if you don’t have the collateral there you need

To decide between banks and nbfc go with the banks if you are eligible for the unsecured education loan from the bank there are only a couple of banks in the market who give unsecured education loan of more than 7.5 factories if you are not eligible for an unsecured education loan from the bank then opt for the loan from the nbfc there the difference between the

Bank and nbfc would be that the unsecured loan from the bank will be at a lower rate of interest than the unsecured loan from the nba now even if you are not eligible for an education loan from the private bank or from a private nbfc in that case you can opt for international lenders the international lender can approve education loans for certain colleges and

Countries without collateral and without coincidence so this is the basic framework you need to follow first check if you have the collateral go with the public sector rights if you don’t have the collateral decide between bank or nbfc if you are not eligible either from the bank or from the nbfc then go for the international land i can understand that this can

See also  What does the Bible say about hoarding?

Be overwhelming and confusing that’s why you can get in touch with us by clicking on the link below that’s a very interesting question why would somebody take a loan when they have the money especially for their own education there are two answers to that the first is it depends on how much money you have let’s say if you have money which you have kept aside for

The rainy day or put it in the other way if you put that money in your education you won’t have anything for a personal emergency or any kind of other emergency then that is not the situation you want to make so primarily the use savings you have if you have a little service then you can put it as for the emergency purpose emergency uses and take a loan from the

Bank for your education now if you don’t have the little money if you have saved a lot even after that taking education can make sense how so how how much interest do you pay when you take an education eight to ten percent right if you take if you take it from public sector bank it will be eight percent if you take it from the private nbfcs it will be 10 11 12

Now if you are a smart investor what you can do is you can invest that money in some financial instrument like stocks future film and if you know or if you have been doing that in the past that you you can make 20 15 18 19 return greater than what is the interest that you are going to pay to the bank then you will end up making more money right by using the loan

From the bank not only that you also get the tax benefit on the interest that you pay to the bank that means your cost of fund will not be ten percent if you take it from the bank if let’s assume you’re interested is 10 percent your cost of fund will be seven percent assuming you are in a thirty percent tax bracket so in a way you can get money at seven percent

From the bank invested in your education and put your money in some other financial instrument where you are getting 12 15 18 or 20 percent and that’s a smart investment choice these are the reasons why you should take an education loan even if you have your fund yourselves so that’s a very interesting question the answer to that depends on two things first is

See also  My Parents Wont Take Me Off Their Mortgage!

Which kind of lender you are taking a loan from so if you are taking a room from public sector banks usually they don’t mandate it it’s your choice if you want to take in loan insurance you can if you don’t want to take you are not forced to do like banks like the state bank of india they give you discount on the interest rate if you buy a loan insurance but again

They don’t mind it on the other hand if you’re taking loan from private banks private institutions they mended it so they are mentally you will have to buy the loan insurance now what do we recommend we recommend that you should take the loan insurance why god forbid if any personal emergency happens and you are no more in that case if you have the loan insurance

That money will be paid by the insurance company to the london the obligation to pay that money won’t come to your parents to your point you should take the loan insurance in the same way you take the normal insurance right that if something happens to you then the your family is being taken care of at the same time here because you have taken an obligation and

In almost all the roots your parents are your co-advocate if something happens to you then your parents will have to pay that money if you don’t have the loan insurance so we recommend you to buy a loan insurance irrespective of if it is being maintained by the lender or not if you want to know more about this loan insurances and how this work get in touch with

Our education loan council i would like to give a very practical answer to this question so usually when you do mbbs from india you have to spend an upwards of 40 50 land days no bank or no lender will give you an unsecured loan for mbbs of 40 to 50 lakh rupees the reason is very simple because after mbbs people usually go for other studies higher education and

Banks are not very clear or very confident if you will start earning immediately they know that you will earn good but they don’t know where you will earn good that’s why they don’t want to be in a situation where you want to go for a higher education but you are doing a job just to repay the education loop taken by the bank now if you are doing mbbs from abroad

See also  Amortization Schedule Car Loan Breakdown

Again you won’t be able to get an unsecured education loan the primary reason for that is the mbps that you do from the other country uh as you know are not valid in india to practice unless you pass the clock qualification exam that they have kept it for such condition where you do the mbbs upgrade and that’s an if condition and lenders generally don’t like if

Condition that’s why they won’t give you an unsecured education loan to study abroad or in fact we study in india of a very high amount in general up to 7.5 lakh rupees you can take but i know that is not sufficient for any kind of mbps so if you have taken a personal loan and have been paying the emi zone tank that will improve your civil support that will give

You the lender more confidence in approving your education loan be with collateral or without collateral if you have taken a personal order if you’ve not paid emi’s on time but there has been even a general delay of couple of days five days ten days in repaying the amis that affects your sibling score badly and the new lender won’t want to take a higher risk of

30 to 40 lakh rupees on your profile so if you have taken a personal loan it really depends on whether you are repaying the emis on time or not that’s the first factor second is how much loan amount you’ve taken so let’s say if you have taken a very small amount of 30 000 40 000 1 lakh rupees which is insignificant in front of the amount you are applying for 40

Lakh rupees 50 lakh rupees in that case they might ignore the load that you already have but like if you have taken a personal loan of 8 to 10 lakh rupees which is a very high obligation already on you and you are supposed to pay a higher amount a month they will do is they will ask you to close your personal loan first and then do another loan on the top of that

Or they will ask you to add a very strong co-applicant with the very strong earning potential who can not only cover your personal own emi but also your education it’s many infant butts so better to talk to our loan counselor by checking the loan eligibility on the link below i hope that answers your question

Transcribed from video
Fast Five – Part-4 | Which Is the Best Bank For An Abroad Education Loan? | Insurance Mandatory?? By GyanDhanliveBroadcastDetails{isLiveNowfalsestartTimestamp2022-01-02T083008+0000endTimestamp2022-01-02T084127+0000}