Taking a student loan is not a debt any more for millions of college going students abroad. It has become a necessity for most of the students as they paying the tuition fees of the college is out of budget. Taking these loans from non-banking financial companies is all the more beneficial and hassle free than ordinary banks. In this article, essential facts about the student loan from non-banking companies has been shared, so that it is easier for all the students to make a decision about the same.
Availability of Pre-visa and Pre-admission Students Loans
The non-banking financial companies offer two very useful and important student loan which are: Pre-Visa and Pre-Admission loans. Student can take the loan before they have got admission letters or before they have got the study visa. These loans boost their chances of getting admission in desired course and university and study visa very much.
Grace Period upto 12 months
Grace period is the time period of upto 12 months given to students to repay the sum amount of money. Although students are to start paying their debts as soon as the loan is issued, but in exceptional cases student may be provided a grace period upto 12 months depending upon the reason of non-payment post graduation.
Need of a Co-Applicant
Student loans from non-banking financial companies need a person who is capable as well as agrees to pay the initial payment of the interest in the study period before the student gets a job and the grace period. In the situation of the student’s incapability to repay the loan, he/she would repay the instalments of the loan and/ or provides the collateral security whichever is applicable.
4. Income Tax Benefit
Students taking education loans from non-banking financial companies are provided benefits under section 80E of the Income Tax Act which gives them rebate on Annual Income Tax to be paid by them when they start earning and paying EMIs for loan.
No Hidden Fees & Foreclosure Charges
Student loans from non-banking financial companies are straightforward and their guidelines are easy to understand with all the costs/fees clearly mentioned. All the fees are mentioned according to the scenarios, so whichever scenario is chosen by the student he/she has to pay the costs accordingly. Also, during the loan period if a student is in a situation of paying the whole loan amount and close the loan, then there are no foreclosure charges to be paid by the student, he/she can easily pay off the loan before the loan duration ends without second thoughts.
No Need of Good Credit To Qualify
Eligibility criteria of taking student loans from non-banking financial companies depends on the financial profile of the borrower i.e. the student and the co-borrower. Probability of not getting the loan sanctioned is very very less in case of weak financial profiles or low credit scores of the borrowers. Borrowers with weak financial profile would get various options such as Interest pre-payment options, partial simple interest rates among others.