Four study loan eligibility criteria NBFCS go easy on
In 2013, Vivek Panchpande, who is visually challenged, felt elated when he got accepted for higher studies at four different universities in Canada, New Zealand, the UK and the US. He had always wanted to study abroad but his dream remained unfulfilled. “With no collateral like a house to mortgage or no family member with a strong financial background to become a co-applicant, every bank I approached refused to give me a loan. I couldn’t go,” said Panchpande, 32, who now teaches part-time at a college in Mumbai.
Panchpande is not the only one to have faced such an ordeal. Several people are unable to get loans for foreign education from traditional lenders because they do not meet the stringent eligibility criteria.
In 2013, there were not too many alternatives, but things are different now. A number of non-banking finance companies (NBFCS) are far more flexible as far as the eligibility criteria goes.
However, they typically charge a higher interest rate on education loans than banks. M. Barve, a Mumbai-based independent financial adviser, said, “For most banks, the educational loan interest rate is available at 10.25-11%.
As far as NBFCS are concerned, the interest rate range is 11-13% depending upon the candidate’s profile, eligibility and other criteria which may vary from case to case. Rates can even go up to 15% for some candidates.”
If you are okay with the higher costs, NBFCS can definitely make it easier for you to study abroad. We tell you the criteria NFBCS go easy on. admission in a top-notch college or university abroad, banks will most likely give you an education loan. In fact, many lenders maintain a pre-approved list of educational institutions.
However, getting into the top universities is not always possible.
Moreover, some niche courses may be available only in unconventional universities or colleges that are not that popular. Thankfully, NBFCS are open to offering loans to students who are going for a course in lesserknown or unconventional colleges or universities too.