The financial state of Indian economics has taken a major hit recently. Due to this the value of rupee has fallen tremendously. The value of dollar now stands at about 64 rupees and the value of pound stands at near 100 rupees. This is a major setback to the economic status of the entire country. Due to this reason the banks have decided to extend the repayment time of education loan to help students.
The State Bank of Hyderabad has taken up resurrection measures to help the cause. Students who want to take Education loan for studying abroad will now get more time to repay back the amount that they take from the banks. They have decided to extend the term from seven years to a maximum of ten years. This will help the students to get more time.
The HDFC group has also taken up certain measures to help in this crisis situation. They have made the loan repayment tenure to about 10 years to 12 years for all. In certain special cases they are also considerate enough to give the candidate a time to return the loan in about 15 years. This is a big step as the economy of the country has fallen apart at this time.
The banks have made it clear that the range of interest for the loans will now range from 11.5% to about 14.25%. This will be strongly dependent on the course that the student is taking up. The students can now take up a loan to almost Rs 30, 00,000. This simply means that they will have an EMI of Rs 50,000 per month. The educations loans will definitely help students to get into good courses and follow their dreams.
Even though the loan will help the Education system in India, and students to prosper quickly this will take a huge toll o the person taking the loan. Once the person has taken the loan, and has completed his education he will have tremendous pressure from the banks to repay the loan.
Some financial experts have demonstrated this with an example. Suppose the person gets a salary of Rs 70,000 per month. He has to pay Rs 50,000 to the bank as EMI for the loan. He will only have Rs20, 000 left to meet all his other expenses like housing, transportation, clothing, food, rent etc. This will not be enough. He will have to dish out money from his own pockets in order to sustain his living. The situation at the moment is pretty bad.
The education system in India is good enough to get people jobs all over the world but there are some countries that have a very strict policy against outsiders. The European countries are very stringent about offering job visa. This pulls back the Indian students from going abroad and earning enough to repay the loan and have a good life. The Indian Education system must enhance certain facilities to get people to crack better jobs to sustain their lives.