[ankur4581]

Originally Posted by kedar.madhekar

Hey Ankur,

What were the interest charges and other details of the loan, like collateral or something like that? I think that will be the deciding factor in taking the loan from wherever...at least thats my perception!!

Kedar, only SBI has a thing like Scholar educational loans wherein you pay a concessional rate of interest. Sorry, I couldn’t ask Mitra the rate, margin, security, etc. As it is, I had him exasperated enough, didn’t want to be denied the loan even before applying for it . So didn’t push with my questions. See, things like collateral, margin, security etc would be similar across all PSU banks. If at all there would be some leniency it would only be under SBI Scholar loan. Further, SBI branches are everywhere. So, I can take a loan from Ahmedabad or Delhi or Bombay. So in that case, I would rather prefer to take it from Ahmedabad. That way, my dad can do all the spadework, and I would be required only to sign . So I need to know if there is any major advantage of taking the loan at the place of study – like, say, ease of reimbursement of expenses covered under loan or something like that. If there indeed some benefit, I am prepared to visit Delhi twice.

[ankur4581]

Any PG guy from Delhi who would be taking a loan? May be you can visit Mr Mitra and find some more info. In phone, there’s a limit to which you can ask questions. I will give u a list of queries/questions to ask Mr Mitra.

[kedar.madhekar]

Originally Posted by ankur4581

Kedar, only SBI has a thing like Scholar educational loans wherein you pay a concessional rate of interest. Sorry, I couldn’t ask Mitra the rate, margin, security, etc.

O yes. Makes sense. Thanks for the info though. Ask me and I would always say that taking loan from your hometown is the best option coz of all the processing that needs to be done and the number of "chakkars" u have to make to the bank. But yes, I dint consider the needs after the loan gets sanctioned, during the course.

Can we have some senior throw light on this please?

[suravishome]

Originally Posted by ankur4581

If there indeed some benefit, I am prepared to visit Delhi twice.

Hey ankur! thanks for all the info! First of all, there should be no problem in taking up a loan in your home town. I had asked one of the seniors as well, and according to him, loan process should be preferably finished off in home town itself.

Here's what I know for the time being -
SBI scholar loans are available at a rate of interest of 10.75%. If someone from SBI can sign as your co-borrower, then you get a further rebate of 0.5%. Mine is such a case as my dad is in SBI.

Following documents are required -
Xth marksheet
XIIth marksheet
Engineering marksheets
Letter for final selection
Pan card (if available)
2 Passport size photos

I am not showing my work-ex to bank (as that will require a whole lot of extra documents.) My father will be showing the following documents (the following is not a comprehensive list - reuirements might be different in different places)

Salary statements
PF current statement
Electricity bills
PAN card

Got my letter today. So, the loan details should be clearer in a couple of days. I'll keep posting on PG as and when I come across any important piece of information.

[ankur4581]

Originally Posted by suravishome

If someone from SBI can sign as your co-borrower, then you get a further rebate of 0.5%. Mine is such a case as my dad is in SBI.

Thanks so much for the details, Suravi. Actually, i was waiting for you to post something on the loan issue. It is unfortunate that banks allow only the parents/spouse to be a co-borrower. Otherwise, all IIFTians would have chosen your dad as one.

Anyways, I apprehensively managed to call Mr Mitra again. He said the difference between SBI edu loan and SBI scholar loan is 2% (So about Rs 10-11k, considering a 6L loan. Too less, actually.). Further, he said the normal margin requirements would be applicable for scholar loan. Meaning, for a loan of 400,000/--750,000/-, margin of 5% would be required. Can you confirm if this is true, Suravi? And, if I show evidence of my work-ex, will it lead to any benefit in interest rate?

So i now only need to compare the benefit of taking a loan from the place of study versus the additional cost I will incur (i.e. cost of one incremental journey, and possibly, stay).

[registeredpuy]

Originally Posted by suravishome

Here's what I know for the time being -
SBI scholar loans are available at a rate of interest of 10.75%. If someone from SBI can sign as your co-borrower, then you get a further rebate of 0.5%. Mine is such a case as my dad is in SBI.

suravi...can u kindly explain wat a co-borrower is?...n who all can b a co-borrower...also arent dere ny hassles of takin a loan frm a PSU compared 2 a pvt. bank...:dontgeti:(well in ur special case...1 guess its nt...:sly

[ankur4581]

Originally Posted by registeredpuy

suravi...can u kindly explain wat a co-borrower is?...n who all can b a co-borrower...also arent dere ny hassles of takin a loan frm a PSU compared 2 a pvt. bank...:dontgeti:(well in ur special case...1 guess its nt...:sly

Hey, look, the bank will want a co-borrower. Because, u would be studying for 2 yrs and hence, be without any income. So the bank will want your dad/mom/wife/husband who is earning, as a co-borrower, for its own sake. As a rule, bank will only allow your parents/spouse as co-borrowers.
PSU loans are cheaper than pvt bank ones. Yes, u mite have to run around a bit, but it's a simple trade-off - I'd rather run a little, may b take leave for a day or two, than pay the exorbitant rates of pvt banks.

[deshh]

Originally Posted by suravishome

Hey ankur! thanks for all the info! First of all, there should be no problem in taking up a loan in your home town. I had asked one of the seniors as well, and according to him, loan process should be preferably finished off in home town itself.

Here's what I know for the time being -
SBI scholar loans are available at a rate of interest of 10.75%. If someone from SBI can sign as your co-borrower, then you get a further rebate of 0.5%. Mine is such a case as my dad is in SBI.

Following documents are required -
Xth marksheet
XIIth marksheet
Engineering marksheets
Letter for final selection
Pan card (if available)
2 Passport size photos

I am not showing my work-ex to bank (as that will require a whole lot of extra documents.) My father will be showing the following documents (the following is not a comprehensive list - reuirements might be different in different places)

Salary statements
PF current statement
Electricity bills
PAN card

Got my letter today. So, the loan details should be clearer in a couple of days. I'll keep posting on PG as and when I come across any important piece of information.

This one for both Suravi and Ankur, me not in for taking the loan right now as I am still not decided on my college, is there an option that we can take a loan later which sort of reimburses our first installment???

[Ysh]

today the letters have reached Bhopal seems they will soon trickle down or have they already? I got two same letter at a same time!!!
Secondly my dada is also in SBI... he puts the figure at roughly at 10%. (To my surprise he told me that you get house loans at 8 % interest bcz they are in priority sector !)
Thirdly once you get a loan sanctioned which you can get sanctioned at the place of your convenience, then you can keep on borrowing mone in installments from that sanctioned loan even from an ATM..and since SBI and may be other banks have core banking you can withdraw that money from ATM from anywhere in country.(I havent talked to him in detail as yet as my lettr came jus 2day but i will share soon whtevr i know on this front)

And totalling all the six installments, I think the amount works to be quite a sum! this IB is going to be at least 5-6 times costlier than my B.E but 15 times better for sure

[ankur4581]

Originally Posted by deshh

This one for both Suravi and Ankur, me not in for taking the loan right now as I am still not decided on my college, is there an option that we can take a loan later which sort of reimburses our first installment???

Hey, u r in a gr8 position. Yes, such a thing is definitely allowed. In fact if liquidity is no constraint, one should go for this option only. But I have no liquidity for the amount payable in the 1st instalment, so I have to go for a loan.