Alternatives to Top-up Loans for Students Applying for Overseas Educat

Category: Education

Presentation Description

Get to know the new concept of Top-up Loans or Overseas Education Loans that can help you plan your studies abroad with the right financial assistance.


Presentation Transcript


Alternatives to Top-up Loans for Students Applying for Overseas Education Loans


Getting education loans for studying abroad is a huge task for the parents and the student. Loans that are disbursed against collateral, also known as Secured Overseas Education Loan . There may be certain issues faced by borrowers regarding the collateral that is mortgaged. A top-up loan is of immense benefit to borrowers with a single asset acting as collateral, and the requirement of multiple loans.


If a person has mortgaged a property say worth INR 80 Lakh for a car loan. After some years, he requires 40 Lakh to fund his Canadian Postgraduate Education. What can he do? There’s a solution. If he has managed to repay 40 lakh or more worth of the mortgaged property of his first loan, he can use the same property for getting a new loan worth 40 lakh.


What if the amount required is of a higher value than the value of the collateral? Suppose Ms. Z needs 45 Lakhs to finance her Master’s studies in Germany but the property is valued at INR 40 Lakh, in such a case, she can get the loan amounting to 40 Lakh against collateral and 5 Lakhs worth of non-collateral loan, resulting in a merged student Foreign Education loan account worth 45 Lakh.


The Loan can also be transferred to another institution if the borrower wants to avail additional features such as pre-visa disbursal, which are not available with one bank but are provided by another bank. The previous outstanding loan amount that needs to be repaid can be transferred to the second bank and the new loan amount is clubbed with the previous loan amount to create a single student loan account.


Extended Loans: This option is available to those who have more than one asset that can be used as collateral. If asset A worth 40 Lakh is used for a loan worth 38 Lakh and there is a requirement of an additional 38 Lakh then the candidate may use another asset worth 38 Lakh or more, to apply for the new loan.

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