Education at overseas universities has been steadily rising, placing a tremendous financial strain on students and their families, finding it ‘relatable’? The rising price of higher education has prompted more people to look for reputable sources of student loan funding. You may wonder if there is any other alternative for student loan funding outside banks. Over the past decade, many NBFCs and private financing organizations have cropped up to provide students with access to educational loans.
It has taken these NBFCs almost no time since their inception to earn the public's confidence. To attract customers, NBFCs are providing enticing loan program with minimal paperwork and really easy disbursement with a minimal time.
The value of a dream is unquantifiable. However, you must ensure you borrow the proper amount to fulfill your needs. Let's take a closer look at the options for obtaining a loan from a non-bank financial institution (NBFC) for overseas education.
What are NBFCs?
A bank is the first institution that comes to mind when considering student loans for studying abroad. But in the current climate, most public sector banks are struggling to cope with NPAs (Non-performing Assets), particularly in the education loan category. Therefore, banks are becoming more and more stringent in their loan offerings, especially for students. Non-Banking Financial Companies (NBFCs) are an option. The primary distinction between a bank and an NBFC would be that the former makes loans to borrowers from their capital. At the same time, the latter acquire aid for their loans from outside investors, financial institutions, and banks. Compared to banks, NBFCs are subject to fewer rules, giving them more leeway when dealing with clients.
Why trust NBFCs, as it has No Regulating Body?
Even though government agencies do not supervise NBFCs, they are governed by the Reserve Bank of India (RBI). RBI maintains a close eye on them and monitors them frequently.
Precisely What is NBFC Loan?
Education loans for abroad studies without collateral are unsecured loans, which a financial institution offers when it does. Financial institutions typically accept real estate, government securities, and other similar assets. Education loans are more common than secured loans. But they have benefits that make them lucrative:
Curriculum Flexibility Non-Banking Finance Companies are quite lenient on the types of courses that can be taken, and they give education loans to a greater variety of programs located all over the world.
Loan Coverage Education loans that are sanctioned by NBFCs cover one hundred percent of the tuition fees, travel expenses, lab fees and test fees, housing fees, cost of books and equipment, library fees, caution deposit, and any other charges that are associated with the education.
Loan Procurement When compared to banks, non-traditional financial companies (NBFCs) have more user-friendly terms, and it is much simpler to obtain a loan to pay for unusual educational pursuits.
Time Needed for Processing Non-Banking Finance Regardless of the type of program, financial institutions move more quickly when authorizing loans.
Processing Fees The processing fees demanded by non-banking finance companies can range from 1% all the way up to 2% of the total loan amount.
Moratorium Period Non-banking finance companies typically offer a moratorium term of twelve months, sometimes known as a holiday period.
Repayments It is possible to finish making payments on student loans obtained from non-banking finance companies in as little as seven years.
The borrower may begin repaying the interest on the loan during the moratorium period, and the principal may be repaid in monthly installments after employment opportunities have become available to them.
Personalized and Tailored Services NBFCs provide a variety of unique services, including pre-visa or pre-admission loan sanctions, fast-track loans, bridging loans, GRE score-based loans, certificates of funds available with door step services.
What documentation is needed to apply for an NBFC loan for study abroad?
Documents needed for an NBFC education loan:
From the applicant
From the co-applicant
Now that we have discussed potentially everything you need to know about NBFC loans, right from what it is, it’s advantages and the documents required, we hope that you have your queries answered. Maintaining a positive payback history is essential to a high credit score, which will help if further financial aid is required. Students in India can turn to the Elan Service for financial assistance to afford the cost of higher education abroad through Best Bank For Overseas Education Loan for you. To apply for an NBFC Loan, don't hesitate to contact their specialists now, as they have a couple of NBFCs as partners.