- Wednesday, September 02, 2015
Though you might have chosen Australia as your study abroad destination but you need to know that you have made an expensive choice. Only being accepted by a university or college in Australia is not enough, you need to be sure of your finances before you take the plunge. Besides the tuition fees, you need to consider the expenses involved with you living there, which can include lodging and boarding. Considering a few factors before you make a final decision can be helpful in the long run.
Banks and approval of loans
You have many banks, which have a list of universities and courses approved by them for further studies in Australia. If you have chosen a course in accordance to this; it might get easier to get your loan approved. You find that most of the banks have made the whole procedure simple so that the deserving students can be benefited by this. Obviously, you will be treated as a borrower when you apply for a loan, but you should be aware that your guardians or parents will be considered as co borrower. The loan is approved depending on the papers, which the borrower puts forward. Different banks grant different amounts of loans with their own set of terms and conditions. You can look for an amount of 20 lakhs, which is possible with most of the banks these days.
Coverage of the loan
The amount sanctioned by a specific bank covers
1. The tuition fees you need to pay to the university or college
2. Charges for hostel, library and the examination
3. Expenses for uniform, books and any other equipment
4. The cost of a two-wheeler, this is optional
Loan to be repaid
You have the convenience of repaying your loan in the form of EMIs or Easy Monthly Installments, which needs to be paid once you have completed one year of your course or even six months after you get a job as a graduate. This depends on which is earlier. There is no margin required by most banks up to 4 lakhs, but more than that you are charged 15 percent.
The requirement of Security by Banks
You have most of the banks not requiring any collateral security for loans which work up to 4 lakhs, but from 4 lakhs to 15 lakhs, there is a requirement of collateral , which is guarantee by a third party that is satisfactory according to the bank. The security accepted by the banks is in the form of
2. Public Sector bonds/Government security
3. Units of NSC, KVP, UTI, gold, shares, LIC
4. A bank deposit with a suitable margin in the name of the guardian/parent, student or even a third party.
The scrutinising of Banks
There are a few banks that grant a loan of a big amount easily. They have their own security issues for which they scrutinise:
1. The capacity to repay the loan by the sponsor or the parent or the guardian.
2. The Collateral Security is valued by a valuator that is approved before the loan application is processed.
3. The margin money is taken into consideration. That is, the family of the student needs to contribute some money which is marginal. Normally, this works out to 25%. Let us say, if you apply for a loan of 20 lakhs, your family needs to contribute at least 5 lakhs.
You can go ahead and pursue your education in Australia with the bank loan that can make the whole problem of finance get sorted out.
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