Hi Mr Ankit
I am an undergrad from Delhi and would like to pursue a master's course in management from Ireland. My father is a government servant but I would like to avail of an education loan. My course fee would be approx 8 lakh (INR) per semester. Will I get a 100 percent loan? What will be interest and terms of repayment? Apart from loans what costs should I consider while applying?
Ans: Your total cost of education includes living costs and is not just limited to course fees. You should consider other expenses as well including spends on accommodation, food, insurance, travel, and entertainment. Lenders typically finance a % of the overall cost of education. Most of the lenders can finance up to 80% of the amount, but in some cases this can go all the way up to 100%
The interest rates on lans against security (where you will pledge a property as a collateral) is typically 10% at this point in time, whereas the rate on unsecured loans hovers in the 11%-12% range in most cases. The exact interest rates are determined based on the applicant's profile. Secured loans have complete moratorium i.e. you are not required to make any payments during the period of study. Unsecured loans have requirements of partial or complete interest servicing during the period of study.