1 / 8

Education Loans: Banks vs. NBFCs

Today, many people consider taking education loans in order to fund their high studies. While it may not be many peopleu2019s first choice, it has many components that can give you unforeseen advantages. As you may already know, the loan you get not only depends on your eligibility and documentation, but also the lender you get it from.

Snehashah456
Télécharger la présentation

Education Loans: Banks vs. NBFCs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Education Loans: Banks vs. NBFCs

  2. INTRODUCTION Today, many people consider taking education loans in order to fund their high studies. While it may not be many people’s first choice, it has many components that can give you unforeseen advantages. As you may already know, the loan you get not only depends on your eligibility and documentation, but also the lender you get it from. Even if you are eligible, the terms of the loan may not be favourable to you.

  3. On that note, the two major financial entities you can take education loans from are banks or NBFCs. While the function they perform is the same, their methods and nature are different. Hence, the process of taking an education loan requires assessment from the lender and the borrower.

  4. Restrictions on expenses Education loans from both banks and NBFCs include the basic course fees, and other types of college fees. However, banks may put some caps or restrictions about expenses you can pay for with the loan. Hence, the extra expenses that may occur may or may not be supported by the banks. For example, you may not be able to spend as per your requirement on reasonable lodging and boarding charges if you have to live away from home.

  5. Interest rates After 1st April, 2016, all loans taken from a bank are linked to the bank’s lending rates based on its marginal cost of funds. Before 2016, the loans were linked to the base rate of the bank. On the other hand, NBFCs do not have the concept of MCLR and can set their own rates based on their completion and their cost of funds. Moreover, rates across NBFCs can have a huge difference.

  6. Courses offered Education loan lenders take the information of the course you wish to pursue. Both banks and NBFCs use that information differently to determine whether you should be approved or not. Banks that give education loan have a fixed list of courses that they consider lending money for. They follow the list to agree or disagree for funding or they may agree for any course given that the college is reputed.

  7. The average lending rate of interest across most NBFCs range between 11% and 13% ROI based on eligibility, criteria, and profile of the candidate. Moreover, most NBFCs have apps or websites that you can take education loans from. This means you will know exactly what rate you are getting right at the start. Related Blog :-All about education loans

  8. Facebook:-https://www.facebook.com/AvanseEducationLoan/ Twitter:- https://twitter.com/avanseeduloan YouTube:-https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug Instagram:-https://www.instagram.com/avansefinancialservices/

More Related