‘For niche courses, try for a loan from an NBFC’
Higher education is becoming increasingly expensive. This applies even more if you wish to study abroad or out of your hometown. A good amount of research can go a long way to help you out in such a situation, in a sector where the costs are continuously escalating. Here are five options to look into:
SCHOLARSHIPS
There are a number of scholarships offered by either the colleges you are applying to, government scholarships or scholarships from various educational institutions. You can refer to resources from the Ministry of Human Resource Development (MHRD), Department of Higher Education which helps students with the scholarship processes of various universities.
There are several websites that have curated lists of scholarships which you can browse through and compare as well. Scholarships can be partial or full, and are awarded on the basis of merit (essays, interests, activities, final marks), need (financial hardship, parents’ annual income), or a combination of both. Most scholarships cover only tuition and fees barring a few which also account for other payments such as living expenses, accommodation and travel. The key is to research extensively, based on the course and universities you want to enrol in and make a list of scholarships that can be availed for these courses and universities.
EDUCATION LOAN
Government of India has categorised educations loans as priority sector loans in a bid to encourage more banks to provide credit to students for higher education.
According to a report by credit bureau CRIF Highmark, banks disbursed education loans worth Rs 82,600 crore in the last fiscal year, which was 9.25 percent more than the in 2017.
The average amount disbursed per applicant climbed to Rs 9.6 lakh in 2018 from Rs 6.8 lakh in 2017. You need to remember that an education loan of a loan amount exceeding Rs 4 lakh, requires a guarantor and a loan above Rs 7.5 lakh requires a collateral as security. Further, the loan may be available only for admissions to recognised and reputed institutions.
WORK AND SAVE
An effective option for those with lack of finances is to work for a year or two and save up enough to fund their own education. For those who can’t or are not willing to wait to pursue their higher studies, working part-time is an option. There are many freelance opportunities available, they are a convenient way to make some money on the side if you approach these smartly. This way you can pay your fees while pursuing your studies simultaneously.
Education is what determines a big part of how quickly you can settle into a life which is secure and comfortable.
However, it is essential to plan your finances as start higher studies including scholarships one can try for in addition to various education loan options that are available from banks and Non Banking Financial Companies (NBFCS). Adequate research helps to get access to funds a smoother process, and can ensure you pick a funding option that is best suited to your requirements and capabilities.
You should know how you will make yourself futureready, rather than give in to the temptations of the easy-to-teach ways. They may be necessary but definitely not sufficient for your success. You have a crucial role to play till someone in the ed-tech industry decides to focus on what matters mostyou.
The author is co-founder and CEO,
Myloancare.in