Line of credit (MBA funding)

[desiboy100]

hey guys,

I am a Rotman admit to Class of 2010, and I am still looking at options of financing my MBA.

I am currently in the US on H1B, and I am unable to secure a US loan since I don't have a US citizen/permanent resident as a co-signer.

However, I was talking to one of my friends, and he told me that i could try to get a line of credit from a bank. When I spoke to the bank manager, he said that a collateral is usually required for a line of credit (such as a house).

Has anyone explored this option further? Is there any drawbacks to this? How is it different to a regular loan? Is there is a way to get a line of credit without collateral?

Thanks for the input!

[eng_harsh]

I dunno if you mean the same, but I'm taking Line of Credit (OverDraft) facility from HSBC bank in India. It does not require any collateral, but it is limited to 6Lac rupees. It has very high interest rate - 21%P.A. I'm taking this for emergency purpose.

Originally Posted by desiboy100

hey guys,

I am a Rotman admit to Class of 2010, and I am still looking at options of financing my MBA.

I am currently in the US on H1B, and I am unable to secure a US loan since I don't have a US citizen/permanent resident as a co-signer.

However, I was talking to one of my friends, and he told me that i could try to get a line of credit from a bank. When I spoke to the bank manager, he said that a collateral is usually required for a line of credit (such as a house).

Has anyone explored this option further? Is there any drawbacks to this? How is it different to a regular loan? Is there is a way to get a line of credit without collateral?

Thanks for the input!

[desiboy100]

Yes, i think it something similar.

I am not very familiar with the line of credit concept. Does it work like a loan?

How much interest on 6 lakhs will you have to pay back, say after 3 yrs?

[eng_harsh]

It's pretty much like a bank account. You withdraw money when you require it through ATM etc. and deposit it back when you are done. You have to pay monthly installments from the time you take the loan(min monthly installment 5% of outstanding amount) - like a personal loan in fact. I'm also takinga personal loan it works out to be much better than this. However, for Visa purposes I'll take Line of Credit to tak eout money for 2 months and then I'll deposi it back after Visa.

Originally Posted by desiboy100

Yes, i think it something similar.

I am not very familiar with the line of credit concept. Does it work like a loan?

How much interest on 6 lakhs will you have to pay back, say after 3 yrs?

[seekabhi]

Hi Harsh,
Can you please share more information on this. I am also facing problem in arranging money for visa purpose. It will be great if you can pm me ur mail id or contact no so that i can discuss with you on the phone...
-abhinav

Originally Posted by eng_harsh

It's pretty much like a bank account. You withdraw money when you require it through ATM etc. and deposit it back when you are done. You have to pay monthly installments from the time you take the loan(min monthly installment 5% of outstanding amount) - like a personal loan in fact. I'm also takinga personal loan it works out to be much better than this. However, for Visa purposes I'll take Line of Credit to tak eout money for 2 months and then I'll deposi it back after Visa.