A PRESENTATION ON FINANCIAL PLANNING FOR HIGHER EDUCATION IN THE U.

S (EDUCATION LOANS)

DISCLAIMER
The final sanction of loan is the sole prerogative of the lending institution and GREedge does not promise or assure sanction of education loans
The role of GREedge is only as referrer and guide and sanction of loans is the sole prerogative of the lending institution This seminar is intended for educational purposes only

Guest Speaker
Mr. K Raju is an ex banker with extensive experience of 33 years in banking with a leading nationalized bank. During his banking career he has headed different branches and also zonal marketing teams of two zones involved in marketing of bank products, including education loans. Mr. Raju was also the Chief Customer Relations Manager for two Zones. He is an expert in bank processes, credit norms and documentation, retail lending, audit and inspection. He is a Commerce graduate and a Certified Associate of the Indian Institute of Bankers (CAIIB).

AFTER GRE
Congratulations - Your outstanding success in GRE has been assured with the first positive step joining GREedge program. The next logical step To secure admission in a university good

The door to education in USA and other countries has opened and your career is launched We wish you have a wonderful life ahead. May all your cherished dreams come true.
Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

ARE YOU READY

Education abroad
Are you ready? Ready with your passport? Ready with choice of the suitable course and university ? Ready for life away from home?

AND MOST IMPORTANTLY, READY FINANCIALLY?

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

FINANCE
Education abroad is costly It is becoming costlier everyday with the fall in value of the rupee A two year post graduate course costs Rs. 15 35 Lakhs depending on the college and whether you get financial aid Management (MBA) and Medical programs cost up to Rs.50 Lakhs You can fund this by liquidating your hard earned savings or allocating funds from your future earnings YOU ALSO HAVE THE OPTION OF TAKING AN EDUCATION LOAN
Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

WHY EDUCATION LOAN

Provides needed funds promptly Insurance against future shocks in personal funding Creates commitment to the student Gives self confidence and pride to the student Gives early start in being independent Low interest and long repayment period makes the loan viable Tax rebate is offered under section 80-e of the income tax act 1961* for the entire interest amount paid towards your education loan.
Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

TECHNICAL TERMS!
Non Performing Asset (NPA) A loan which is not performing. If the interest or principle installments are outstanding (not paid) for 90 days the loan becomes an NPA. Once your loan becomes an NPA, all recovery steps start immediately and you cannot avail a loan from any bank in future. Collateral Properties or assets (e.g. a home, a plot of land, LIC policies etc) that are offered to secure a loan.

Loan Security Collateral pledged by a borrower to secure a loan from a lender. If the borrower fails to repay the loan, the lender can seize and sell the collateral.

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

TECHNICAL TERMS!
NBFC Non-Banking Financial Companies, are institutions that provide financial services, but do not hold a banking license. However, all operations of these institutions are still covered under banking regulations.
CIBIL Credit Information Bureau (India) Limited. Its a database of information, which contains the credit history of commercial and consumer borrowers. Whether a persons loan application is accepted or not depends on his/her CIBIL rating (past credit history)

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

TECHNICAL TERMS!
Repayment Period The period during which the loan amount, along with the interest, needs to be repaid. Usually 5 to 7 years. Moratorium Period Repayment holiday period during which the borrower need not start repaying the loan. Only simple interest is charged during this period. Most institutions offer some reduction in the rate of interest if the borrower chooses to pay interest portion during the moratorium period. Repayment holiday is the course period + 1 year OR 6 months after getting a job whichever is earlier.

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

TECHNICAL TERMS!
Margin The amount contributed by the borrower to the total cost of the course while availing a loan. Co-borrower/Co-obligant additional borrowers whose names appear on the loan documents and who share the responsibility of repaying the loan along with the primary borrower. Floating rate of interest The rate of interest can vary depending on market or other factors during the repayment period. On the other hand, fixed rate of interest is fixed for a defined period (usually 5 years).

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

TECHNICAL TERMS!
Processing charges A fee charged by the institution for processing the loan application. Prepayment charges A fee charged by some institutions in case the borrower wishes to repay the loan amount before the end of the repayment period.

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

WHO GIVES THE LOANS

All nationalized banks Some pvt. sector banks Some NBFCs (in case of nationalized banks, one should approach the branch nearest to place of domicile for loan)

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

ABOUT EDUCATION LOANS

What you should know
Rate of interest Repayment period Loan amount Security Documents required How to apply

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

RATE OF INTEREST
In case of most banks and NBFCs:
Rate of interest ranges from 11 to 13% depending on amount required as of now Simple rate of interest during loan period Loan period equals period to complete the course Servicing of interest during loan period optional Concessions in rate of interest for servicing of interest during loan period Compound interest once repayment period commences
Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

REPAYMENT
In case of most banks and NBFCs:
Repayment period commences 12 months after completion of education or 6 months after getting a job whichever is earlier Repayment period of 5 to 7 years Repayment will be on equated monthly installments payment method (EMI) Interest is compounded during repayment period with monthly rests

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

LOAN AMOUNT
In case of most banks and NBFCs: Following expenses qualify: Tuition fees Cost of accommodation Cost of books Travel expenses Margin ranging from 15 to 20 % is required to be borne by borrowers

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

SECURITY
In case of most banks and NBFCs:
Collateral security of immovable property valued at 150% of loan amount required In case of National Savings Certificates (NSCs)/ LIC policies (surrender value) 125 % margin acceptable Parent will be co borrower

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

PAPER WORK
The required documents are usually listed in the application form, normally these include Documentary proof of educational qualification Copy of admission letter from foreign university/college Address proof Identity proof Photo Copies of all papers available relating to property It is also highly advisable to have a PAN card.

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

HOW TO APPLY?
Printed applications can be secured from any branch of the chosen bank/NBFC Form is available in the web site of most banks/NBFC and can be downloaded On line application is enabled by most banks

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

OUR HELPING HAND

We have entered into an understanding with selected NBFCs for speedy clearance of loans to our enrolled students Concessions in processing charges and Interest Rate are offered We are also liaisoning with several banks for special rates and concessions to our enrolled students Referral from GREedge will be a positive in the application assessment and will make sanction faster and easier Personalized guidance on a case-by-case basis, from our banking consultant is available on request.

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans

GOOD LUCK!
We wish you all success in your education and your career

Mr. K. Raju has expertise and vast experience in retail lending, especially education loans