In many countries, 70% TO 80% foreign students aren’t being funded by universities. Neither can we self-fund. In order to do an MS in the US, 30 Lakhs to 1 crore required!
1. Rate of Interest
What is the rate of interest? The extra amount paid by you to the bank on the principal amount at the event of taking a loan. Various banks offer varied rates of interest so it is still better to consult your bank. The rates are variable and depend on GRE score, parent’s income and your property and so on. It is recommended to go for the least rate of interest as interest compounds.
2. Moratorium Period
During your education, you aren’t working and your bank knows that. So, that time frame is known as moratorium period. During this period, you aren’t obliged to pay anything to the bank. All the interest will begin after this time period. It again depends from bank to bank as to what time frame they offer as moratorium period.
3. Margin amount
Banks want to ensure you don’t misuse their funds. For instance, If your education costs you 25 Lakh and you borrow 15 Lakh, the remaining 10 Lakh would be the margin amount. In the sanctioning document, it will be mentioned that you have a margin amount of 25%. Each bank is different and it’s better to consult your bank for more details.
4. Early Repayment Penalty
I know what you are thinking. “A fine for early repayment?” You repay your loan on an instalment basis. Verify with your bank on this.
5. Processing fees
Different banks offer different processing fees. One may offer 1% while another may offer 5%.
You can put your land or house as collateral. But different banks have different policies. Some banks may not offer collateral as well. Check with your bank.