Career training loan
All parents dream of their children becoming a doctor or engineer. But, as the father of our nation, Mahatma Gandhi once said, "India lives in her villages". Because of the free education initiatives taken by the government, education up to the senior secondary level is no longer an unachievable aim for most of the Indian students. However, graduate and postgraduate studies are often out of the reach of most students. Most of the middle-class families in India cannot afford to pay thousands of rupees for the high cost of education. One way to overcome financial hurdles and to fulfill the educational dreams is by taking a career training loan.
Career training loans are very important because they are investment for the future. They can be applied for a variety of courses, some of which are medical, engineering, arts, science, hotel management, and visual arts. There is no average limit on such loans. This essentially means that they cover payment of not only education fees, but also related expenses such as tuitions and transport, etc.
For most students this is often the first time they are taking a loan. Very few students would have taken a car or credit card or any other loan before entering college. Hence, most students would have absolutely no credit history. Hence the lending institution will often insist on a cosigner. A cosigner is a family member or a close relative, who has a worthy credit history. It is generally recommended to sign a loan with a cosigner, even for those having taken previous loans. If the student pays the first 24 emi's on time, the cosigner can be released.
Some of the things to keep in mind are term fees, tuition fees, repayment terms, interest rates and deferment options before selecting a particular bank. Some banks will allow the student to defer the payment by up to 24 months, if it does not exceed the graduation date. In such cases, there may be penalty on the monthly installments.
Some of the banks which offer career training loan in India are Centurion Bank of Punjab, IDBI, SBI, Axis Bank and HDFC. For example, SBI offers career loans for those students who want to take up commercial pilot training and air hostess training. The minimum age for the student is 18 years. The co signer should be less than 60 years old. The bank offers a maximum of 10 lakh rupees for studies within India and 20 lakh rupees for foreign studies.
The loan can be repaid 6 months after getting a job or up to 1 year after finishing the course. All expenses to complete the course are taken into consideration. These include college, hostel and tuition fees. Expenses towards buying computers and other equipment, uniforms, books and instruments are also included. The cost of a two wheeler costing up to fifty thousand rupees is also covered. The bank also finances study tours and project work for the student. If the student has to travel abroad, then the loan also covers travel expenses and ticket costs.
Students have a variety of options nowadays. It is generally recommended to take the advice of the elders in the family while going through the career training loan terms and conditions. A little advance homework will save a lot of worry afterwards.
Other Articles
