The Beginning of Student Loan
Student loan is a very popular topic recently as employers are increasingly valuing the academic background of their employees. It is more difficult to find a job for candidates who do not have a good educational background to support their resume. So most of the students would like to pursue a higher education now.
However, education is always expensive. While most students do not have a job, most of them rely on their family to support their education. For those who are not that lucky that their families may not be able to afford their further education, they still do not have to sacrifice their studies because of financial difficulties, as student loan is another option for them.
What Makes Student Loan Different from Other Types of Loans?
This type of loan is very different from the other types of loan because firstly, they have a low rate of interest and the repayment procedure is also different. Now lets us take a closer look at the approval of student loan.
The Criteria of Student Loan – Get Your Student Loan Approved
At first let us take a brief look at how to choose a loan. For this the very first thing we should take a note of is the location of the bank. It is always preferable if the bank is located near the place of your study than your residence, but in case of overseas education that is a different issue.
Secondly it should always be kept in mind that the repayment tenure starts only after 6 to 12 moths after you get a job( in most cases the time is 6 months).
Last but not the least is that the banks always prefer to provide loan for traditional courses.
What types of courses do the banks finance? The banks generally prefer management courses, technological courses, medical and engineering courses. This is because they are more likely to go for courses, which according to their own analysis, have a higher tendency for landing on a job. Parent’s financial status is also a matter of concern while sanctioning a loan.
A Guarantor Could Help to Loan More
In case of student loan the amount is little big and if you can produce a guarantor then you will have the option for a higher amount.
Applications of Student Loan Reference
The documents needed for obtaining a loan usually include:
- Mark sheets of qualifying examinations
- Proof of your course admission for which loan is applied.
- Detailed course fee for the course.
- Copies of letter for scholarship if available
- If you are going for overseas loan you need letter for foreign permit
- Bank statement account of the applicant for the last six months.
- Income tax statement if available
- Aassets and liabilities of the person borrowing the loan.
- Identity and address proof.
Problems on Taking Up Student Loans
But the most concerning issue now is that, since the economy of the world is not in a good state it may take more than six months to get a job. The repayment tenure starts after six months of completing the course. In such critical situation a candidate defers the loan payment dates which causes the rate of interest to increase abruptly or they may land into a job where the payment is not satisfactory, they do this just to pay back the loan and thereby unable to do any savings for their own.
Student Loan Pass Due
Now if the payment of the loan is not done within some period after the completion of the course the banks would give the responsibility of collection to the collection agencies to go for harsh methods to collect the loan. So it is always a wise decision to take into notice that how much amount is being borrowed, and prepare an enterprising plan to work out on the loan repayment.
Over Burden Student Loan for Low academic candidates
There are institutions offering overcharged curriculum for students obtaining median to low academic score. If your family could not afford the tuition, think twice before applying student loan for the courses. Unrealistic amount of student loan should not be committed as the amount plus interest comes into a huge figure which is beyond the reach of a fresher. Most likely you will have a hard time paying debts and making ends meet once you have graduated.