Every year number of stduents,collegians and professionals in india pursue higher studies or MBA in India or abroad. Famous destinations like USA, Canada, UK and Europe have great quality of life and education to fulfill their dreams. As the educational expenses around the globe continue to grow ,they require some form of financial aid or loan. However, there are number of loan approving bodies in India and US both. In USA, usually federal loans, perkins loans like FAFSA etc are quite sufficient but have obligations and require a US co-signer. Moreover,these financial aids are not available to international students.
Hence, indigenous financial bodies like CREDILA provide indian students the loan facility. Credila says funds even before I-20 to students, But Are these institutions living upto the expectations? such institutions levy a big collateral security from applicants, in form of tangible and fixed assets such as Home and fixed deposit etc. Usually parents act as co-signer for approval of students loan and repayment go upto a period of 20-25 years. The collateral security is 4X value of loan and much less than MV (market value) of the house property , home etc. Also, repayment amount comes out to be 4X loan amount with interest added compounded anually for 20-25 years.CREDILA never ever release a single penny to students who dont satisfy any of the above mentioned obligations. Hence, in hindsight, students and their parents in a quest to secure better future are so much drowned in debt that theres no coming back!!
Similar instances have been drawn from US institutions such as Salie Malie bank or GSRC. But with a vibrant economy and revised reforms by President Obama has eased out things a bit. But countries like India and Pakistan are still to come to terms with it. Indian govt. has unleashed a lot of reforms for students who are meritorious and looking for need based finance but real picture is that its all on papers only. Indian Banks and profit making bodies have devised a way to exploit the conditions. Such financial banks have actually become money shops where they never care for students and their future. However, SBI and some famous banks might be an exception to this..
Hence, a potential education loan applicant should consider all options and short & long-term disadvantages and benefits before going for a student loan in india.