AN education loan could well propel your career up to the dizzying heights you have aspired to. Take up your dream course, without all the money tensions.
IIM-B graduate Ajit Menon works as a Regional Sales Head at an MNC. Though the climb has been fast, and the post hard earned, he feels that a certain stagnation has set in. Being ambitious, he is aiming for bigger and better things.
Back to school
The best way to give your career a shot in the arm is to go back to school. For the working professional, returning to academics is a great way of honing up skills and networking.
There are great choices in India, but a foreign degree added to your resume will, quite literally, open the world up for you.
You can choose either to study further in the field of your specialisation, or perhaps explore new areas that have high growth potential.
Loan to learn
Once you decide to make the move, the question on top of your mind will probably be financing your study sojourn.
If you are past your thirties, you are likely to have some responsibilities – a home loan for example – which you need to meet. You also need to make sure that your family’s living standard does not suffer, even for the period of your education.
A study loan often works out to be the most feasible way of financing your education. Even if you have adequate savings, it may be wise to go in for a study loan to finance your continuing education. This way, your savings and investments can continue their job of acting as a cushion for your family.
An education loan is widely available at banks at attractive rates. In fact, banks prefer giving loans to individuals with work experience. This is because they will be able to pay off loans quickly due to their higher start salaries.
How to take a loan
Most banks will provide you with an education loan for studying abroad. The amount prescribed by RBI is Rs 20 lakh for studying abroad. The rate of interest will vary from 11% to 16%.
Repayment period typically starts within six months of completing the education and the loan will have to be repaid within 10 years after completion of education. You will also be required to invest at least 15% of the loan amount – the bank will finance 85% of the loan.
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