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'What are the loan prepayment charges at SBI?'
In an online chat with readers, Neeraj Saxena of Avanse Education Loans answered queries related to education loans and helped them make an informed choice.
After you have decided on what course you want to pursue, the next thing you'd want to know is how you can fund it.
While education loans have made life simpler, it is important to know the pros and cons of these loans before signing up for one.
Every bank offers a host of features like flexible term of payment, customised pre-payment options etc -- which you must consider before taking an education loan.
How do banks decide the eligibility criteria?
What are the possible factors that lead to loan rejection?
To help our readers make an informed choice, Rediff.com had organised a chat with expert Neeraj Saxena, CEO, Avanse Education Loans on Tuesday, July 1, 2014.
For those who missed the live chat, here's the transcript:
Neeraj Saxena: Good afternoon everybody! It is nice to e-meet you all and happy to answer your queries.
Amol Chille: Dear sir, my dad retired six months ago. Can I still show my dad's bank statement while applying for education loan?
Neeraj Saxena: Hi Amol, You could show your dad's bank statements provided there is an income source reflecting in the account.
For example, pension income. This is important to discern eligibility.
Alternatively, you could have another earning member of the family as a co-borrower.
Satish Pulli: What collateral do banks ask while applying for education loan?
Neeraj Saxena: Hi Satish, immovable property documents, lien marked FDs and life insurance policies etc could be used as collaterals while applying for education loans.
adil: What are the loan prepayment charges at SBI?
Neeraj Saxena: Every financial institution follows a different structure of pre-payment charges. I would suggest you check with SBI on the pre-payment charges.
Raj: Hi, I want to avail an education loan for my daughter. Can you tell me which are the best banks for Education Loans?
If I take an education loan from private banks or financial institutions like Avanse can I claim the tax rebate?
Neeraj Saxena: Hi Raj, education finance players like Avanse do offer funding for all fees relating to course including capitation fees.
It would also be heartening for you to know that we also consider funding for living expenses.
Neeraj Saxena: Good luck with your higher education. For your specific information needs, you can write to Avanse on response@avanse.com.