FEE FINANCE TODAY VS EDUCATION LOAN YESTERDAY!



Pursuing higher studies these days usually involves high fees and can turn out to be a road-block, standing stubbornly between a students' realisation of their professional dreams. Add to this the dismay felt, upon calculating the high rate of interests charged by banks and students can almost bid adieu to their careers. Traditional educational loans have been prevailing for the past many years now, but as the system changed, so have the ways of operation.

Burden of Education Loan

Let us first understand how an educational loan works. The course fee for the programme applied for is paid by the financial institution, which depends on various eligibility criteria. The applicant should get a placement by 6 months upon completion of the course and start repaying. If in case, the applicant doesn't get placement in the said period, a maximum of 6 additional months is granted and after which the EMIs begin. The interest for this duration is calculated on a 'simple interest' basis. Educational loans place students in long term debts during which the interest for the loan period accumulates and become a burden on the applicant.

These two drawbacks put immense pressure on the student who must now carry the burden of a huge debt on their shoulders, most probably deterring them from exploring new arenas of growth.

Overview of Fee Finance Scheme

• Driven by the vision to make education accessible to all, fee financing scheme caters to career goals and dreams, supplementing learning.
• Fee financing is a modernistic and inventive solution accommodating the welfare of both the child and parents collectively.
• The scheme provides 100 per cent fee finance, without any interest charged, which is paid upfront to the educational institutes at the time of admission.
• The loan requires to be paid over a number of monthly installments, commencing at the same time as the course. These installments are, Zero Cost EMIs, with no hidden charges, and can be sanctioned as fast as 48 hours from the date of application.
• By the time the student completes his/her course, the fee loan also gets paid off simultaneously, thus the student steps out into the professional world without any financial baggage bearing upon them, encouraging them to focus better on their career.