Loan calculator
**Note: For exceeding 120 no. of payments, a group of 12 payments will be combined into a single payment number for better chart visibility.
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Benefits of Student Loans
- Enables access to higher education.
- Builds credit history for the future.
- Offers flexible repayment options.
- Potential for loan forgiveness for certain professions or under specific programs.
Moratorium Period for Abroad Education Loans
The moratorium term offered by the majority of foreign education loans consists of the course length plus one extra year. Students are exempt from repaying the principal and, in certain situations, the interest throughout this period. This grace period makes the procedure easier to handle and less stressful by allowing students to concentrate on their studies and find work before beginning loan repayments.
FAQ
How long does the loan approval process take?
The loan approval process can take anywhere from a few days to a few weeks, depending on the lender and the type of loan. Federal loans are usually quicker, while private loans may require more time for credit checks and documentation review.
What is a moratorium period, and how does it work?
A moratorium period is a grace period during which borrowers are not required to start repaying their loan. For education loans, this typically covers the course duration plus an additional 6-12 months, allowing students to focus on their studies and find employment before beginning repayments.
What happens if I cannot repay the loan on time?
If you are unable to repay the loan on time, it may affect your credit score and result in penalties or additional interest. Some lenders offer options like loan restructuring or deferment for borrowers facing financial difficulties.
Is a collateral required for an education loan?
For higher loan amounts, especially for studying abroad, lenders may require collateral such as property, fixed deposits, or other valuable assets. However, smaller loan amounts or government-subsidized loans may not require collateral.
Can I get a loan for studying abroad?
Yes, many banks and financial institutions offer loans for students planning to study abroad. These loans typically cover tuition fees, travel expenses, accommodation, and other related costs.
