With increased fees of educational institutions, many students find it better to drop out than paying that much. Most of them are unaware of the facilities government and private companies have. But some with the help of the internet can reach the banks for providing them the necessary loan/ money.
With an increased amount of job opportunities, the variety of jobs also differs. Everyone has different dreams. Not all want to be an engineer, doctor or main-stream professionals. Some choose to study skill-based courses.
But banks do not provide loans for these courses. They have a set of listed courses. And only for those limited courses they give the loan. That too only 7.5 lacks. It is hard for those who want to study abroad to fill the fees of expensive institutes.
A comparative study between nbfc and bank loans:
- This is one major reason why people turn towards Nbfc Loans. These non-banking finance companies give loans as per your needs. Although eligibility and tenure may vary from one company to another. NBFC education loan is much more preferred than banks as it covers all the courses. And has 3 categories for loans that are:
- Students who have got admission in top-rated institutions.
- Loans to students who have got other domestic institutions.
- Students who want to pursue their further studies in abroad.
- Loans are given on the risk of the income statement of either the borrower or the co-borrower. That is usually the parents of the student. The non-banking finance companies have lower interest rates than the banks and are way more flexible with the amount and time. Unlike the banks.
- All the expenses such as fees, travel expenses, purchase of books, equipment, purchase of laptops are included in the loan. But few banks do not cover the living expense and that can create a problem. With NBFC loans there are no loopholes. And all the expenses are covered that will happen in the next 2 years of the study period.
Variation in rate of interest:
Loans are provided by the NBFC at a low rate of interest. As they have a clear vision. That is to support students who lack the resources. Most of them have the idea to give proper guidance and help to the students. While the bank has other self-oriented reasons for providing the loans. Only about 1% percent of the total students who applied for a loan are provided the funds.
Policies of the bank:
The NBFC provides about 10 lakhs as the amount of education loan for studies in India and 20 lacks for studying abroad. The banks also give almost the same amount of money. But the bank has two conditions that are:
- The institute should be reputed and known.
- The course one is choosing should be a professional one.
These two are quite big conditions for those who want to pursue skill-based courses, in educational institutes that are not so known. As per the banks higher the grade of the institute- higher will be the loan amount granted and lower the interest rate.