Has anyone considered / evaluated the education loans offered by Paras Education Foundation http://www.isloan.org/index.asp What are the pros and cons of using them. I have gathered the following: 1. They require $2500 upfront for…
Has anyone considered / evaluated the education loans offered by Paras Education Foundation http://www.isloan.org/index.asp
What are the pros and cons of using them.
I have gathered the following:
1. They require $2500 upfront for processing of application
2. Take 4 to 8 weeks to process the loan
3. Interest rate is linked to US Prime Lending Rate
4. Repayment starts 6 months after graduation
Does someone have personal experience (self, friends, family, etc) of using them?
Any inputs will be most welcome.
If its on the INSEAD site then I think it cannot be an outright fake/fraud:
http://www.insead.edu/mba/admissions/pel.htm
Would be great is someone can post his/her experience here.
Arun
http://www.insead.edu/mba/admissions/pel.htm
Would be great is someone can post his/her experience here.
Arun
Do they ask for collateral ? When you say "Interest rate is linked to US Prime Lending Rate" - can you give me some idea on what the figure will approxly be ?
Co-signor's financial standing is used as a guarantee however they might review the credit rating of the co-signor. Prime lending rate is around 4.75% and the banks charge a few percentage points over and above the PLR depending on the eligibility of the university (along with its reputation) and the standing of your co-signor.
Disclaimer : This is generic information and different agencies have different policies
It does not seem to be a fraud. It is on other sites too.
IESE http://www.iese.edu/en/files/6_18484.pdf
LBS http://www.london.edu/assets/documents/PDF/Australia_Asia_and_Africa_funding_05.pdf
Basically the terms are
1. Rs. 5000 to start processing your loan, this is non-refundable but is adjusted against the loan somehow.
2. Maximum loan upto $48000 with one US co-signor
Other terms are attractive
1. Repayment period upto 20 years
2. Interest Rate around 6.5%, floating - based on US PLR
3. 6 month moratarium after graduation before repayment starts
4. No prepayment penalty
Refer to http://www.isloan.org/faqs.htm for details.
Now the only thing remaining is getting a US co-signor, and get this thing worked out within the next 20 days or so. Both difficult and improbable in my case.
Let's see how it goes
The US Cosignor has to be a US citizen or can a green-card holder do ? I have already mailed them and will post if I get any response. Meanwhile curious to know if anyone has the answer.
Arun
US cosignor can be a Green card holder.
I dont really trust my memory, but mebbe one of ya could ping simba regarding this foundation.....I recall hearing abt this foundation from her(?) a long time back... 😃
Cheers
Update, essentially both Paras Education Foundation - http://www.isloan.org/index.asp and IEFC http://www.iefc.com offer similar (same???) services.
IEFC is recommended over Paras Education Fund.
Both of them require a US Co-signor (read Citizen / Green Card Holder) with a ok / good credit history. Unfortunately this is the entity I am unable to find and hence might not be able to attend INSEAD.
Hi,
Does any body has any idea how to apply for loan from US banks, as i have a cosigner to assist me, but don't know the procedure.
Also interest rates are very high in INDIA,so i m thinking of taking a loan from US.
pls guide me.
Paras Loan reqires US Citizen or Green Card Holder as Co-Signor.
Without this,the loan application will not be entertained.
I had applied for it and withdrawn also.
I feel SBI and SBH are very good in processing the education loan.
You must have already seen this list of banks in India providing education loan.
Especially in Metros and big cities the loan clearance is within 2-3 weeks.
List http://www.hindustanlink.com/careertex/educational-loans-india.htm
Not sure if this was helpful
Without this,the loan application will not be entertained.
I had applied for it and withdrawn also.
I feel SBI and SBH are very good in processing the education loan.
You must have already seen this list of banks in India providing education loan.
Especially in Metros and big cities the loan clearance is within 2-3 weeks.
List http://www.hindustanlink.com/careertex/educational-loans-india.htm
Not sure if this was helpful
Hello everyone,
I have got a loan processed through PARAS. Those guys are thugs. They charge Rs 5000/- + additional fees depending on the amount of loan... more the loan more the fees. The loan has to be renewed every year. Now, here is the catch... it is offered free of cost by TERI and PARAS will process using TERI too. They are thugging naive and needy students. For sure, they get a commission from TERI. However, they want to suck money from the students too. I processed the loan on my own for the subsequent year and it is easy. I will explain the process in detail for everyone's use. I expect PAGALGUY users to spread this so that everyone can use it... All students going to US and CANADA to study can use this service online. Even students doing MBA in India and other countries can use this service, however, I suppose you will have to call TERI (1-800 on website) and ask how to do it?
Loan: (or Product information)
As a foreigner in US, one cannot apply for state sponsored loans offered by TERI. Following loans can be applied for:
TERI - Loan Center - TERI Loan Partners
I or PARAS chose Wachovia bank of Delaware, since that was the cheapest loan at that time. See, which banks offer the cheapest loans.
The loan can include your tuition, living and travelling expenses. There is no processing fee from TERI or my lender and you can fully defer your loan i.e. I need not pay any interest if I do not wish to until I graduate. You do not need any collateral against your loan. You have 20 year period to pay off your loan (though you would like to pay it off as soon as possible)
Requirements:
1) A US permanent resident (green card holder) or citizen with good credit standing needs to act as a cosignor. The cosignor need not be you relative and anyone can act as your cosignor --> only condition he/she should have a good credit standing.
Steps:
1) Go to the website and fill the application form for loan. Remember you need information about your cosignor like SSN, annual salary, employer and address. You cosignor can go and fill that information too. Remember you do not have to enter an SSN --> TERI will assign it for you
2) Once the application is submitted, TERI will temporarily approve the loan --> this is as good as approved, all it means is you and your cosignor have to complete your paperwork. Ask for the contract to be sent electronically.
3) There are 3 copies - your copy, cosignor's copy and lender's copy (TERI). Sign the lender's copy and fax/courier it to your cosignor. He/She can then sign and fax it with the other requested documents to 1-800 fax number of TERI.
4) Then TERI will contact your university and confirm your status. Finally, they will complete the paperwork with the university. The cheque disbursement dates will be decided between the university and TERI. You will be sent a copy of the disbursement dates. The disbursement dates are usually a week or 2 before your fee installment payment date. You will have to collect the cheques after they reach the financial aid office (usually, confirm this with your university where does all the loan cheques arrive), since the cheque is made payable in your and university's name. Usually, the university will deduct the fees from the amount. If there is any extra amount (living, etc), they will credit it to you.
NOTE:
1) When you have to access or download the contract after your loan is approved, you have to login and the access code to download is given via phone i.e. You will immediately receive a call at the phone, which you stated as your contact number and will receive the password or access code for the application.
2) When you have to login to retrieve your final loan contract, you need a SSN. You can either call TERI customer service; give your application number; verify your information and explain why you don't have a SSN since you are not a US resident. They will then give your dummy SSN to you. Else, you can ask your cosignor to login using his/her SSN and download the contract and send it to you. You just need to fax Lender's copy to TERI and the cosignor's copy if he/she wants to have that.
3) The other easier way out is to demand a paper copy to be sent to you, however, that would require some time to be receive the contract.
Hello Rahul !
thanks for the info below. I am also planning to go for an education loan and was thinking of PARAS. I saw ur inputs and find them really handly. So, can you please tell me a bit more about LOAN process from TERI ?
May i request you to please send me ur contact number/email id, so that i can talk to you in detail about the loan process from TERI.
Please send ur info on : [email protected]
Thanks in advance for any of ur suggestions and help in this matter.
Regards,
Kuldeep
Hello everyone,
I have got a loan processed through PARAS. Those guys are thugs. They charge Rs 5000/- + additional fees depending on the amount of loan... more the loan more the fees. The loan has to be renewed every year. Now, here is the catch... it is offered free of cost by TERI and PARAS will process using TERI too. They are thugging naive and needy students. For sure, they get a commission from TERI. However, they want to suck money from the students too. I processed the loan on my own for the subsequent year and it is easy. I will explain the process in detail for everyone's use. I expect PAGALGUY users to spread this so that everyone can use it... All students going to US and CANADA to study can use this service online. Even students doing MBA in India and other countries can use this service, however, I suppose you will have to call TERI (1-800 on website) and ask how to do it?
Loan: (or Product information)
As a foreigner in US, one cannot apply for state sponsored loans offered by TERI. Following loans can be applied for:
TERI - Loan Center - TERI Loan Partners
I or PARAS chose Wachovia bank of Delaware, since that was the cheapest loan at that time. See, which banks offer the cheapest loans.
The loan can include your tuition, living and travelling expenses. There is no processing fee from TERI or my lender and you can fully defer your loan i.e. I need not pay any interest if I do not wish to until I graduate. You do not need any collateral against your loan. You have 20 year period to pay off your loan (though you would like to pay it off as soon as possible)
Requirements:
1) A US permanent resident (green card holder) or citizen with good credit standing needs to act as a cosignor. The cosignor need not be you relative and anyone can act as your cosignor --> only condition he/she should have a good credit standing.
Steps:
1) Go to the website and fill the application form for loan. Remember you need information about your cosignor like SSN, annual salary, employer and address. You cosignor can go and fill that information too. Remember you do not have to enter an SSN --> TERI will assign it for you
2) Once the application is submitted, TERI will temporarily approve the loan --> this is as good as approved, all it means is you and your cosignor have to complete your paperwork. Ask for the contract to be sent electronically.
3) There are 3 copies - your copy, cosignor's copy and lender's copy (TERI). Sign the lender's copy and fax/courier it to your cosignor. He/She can then sign and fax it with the other requested documents to 1-800 fax number of TERI.
4) Then TERI will contact your university and confirm your status. Finally, they will complete the paperwork with the university. The cheque disbursement dates will be decided between the university and TERI. You will be sent a copy of the disbursement dates. The disbursement dates are usually a week or 2 before your fee installment payment date. You will have to collect the cheques after they reach the financial aid office (usually, confirm this with your university where does all the loan cheques arrive), since the cheque is made payable in your and university's name. Usually, the university will deduct the fees from the amount. If there is any extra amount (living, etc), they will credit it to you.
NOTE:
1) When you have to access or download the contract after your loan is approved, you have to login and the access code to download is given via phone i.e. You will immediately receive a call at the phone, which you stated as your contact number and will receive the password or access code for the application.
2) When you have to login to retrieve your final loan contract, you need a SSN. You can either call TERI customer service; give your application number; verify your information and explain why you don't have a SSN since you are not a US resident. They will then give your dummy SSN to you. Else, you can ask your cosignor to login using his/her SSN and download the contract and send it to you. You just need to fax Lender's copy to TERI and the cosignor's copy if he/she wants to have that.
3) The other easier way out is to demand a paper copy to be sent to you, however, that would require some time to be receive the contract.
I have just contacted Paras to enquire ragarding their services. They had one single response, pay 400 and then ask questions. It is so ridiculous to pay someone money to know about the services they offer. I am not sure how they are surviving.
After reading above posts, I have gone through IEFC and TERI websites. They say that currently they stopped giving loans to international students, if such is the case I am not sure how paras process the loan, to clarify which I called them up and got a bland response.
Ms Bharti sounds worse than a government bureacrat. They even hung up at me when I was trying to ask them whether they will be able to get a loan for me. I have no grudge against any particular organization, but being in a customet centric environment it is sad for me to be treated like this.
Are there any other alternatives to Paras? I have a US co-signor to help me. Now that TERI and IEFC are closed for new applications, any suggestion on other organizations or information on how having a US permanent resident to guarantee your loan helps?
TERI got banrupt in April 2008 and IEFC has a similar condition, so I am not sure if Paras can give the loans, just reiteration of what I said above, so please think again before going for Paras and DO NOT PAY THE REGISTRATION FEES unless they affirm that they can provide the loan.
Here is my experience on Paras.
I visited their office in the first week of Jan. It looks a little suspect. The counsellor refused to give any information without registration. I told her that I am only looking at colleges in Asia and if she was open to financing them then I am willing to register. Since I have already got an admission call and needed the funding I didnt mind taking a chance. She said she would send details to the lender if I register.
I registered and got information on their functioning. They want a US based co-signor and that is mandatory. I didnt hear from them for about 2 weeks so I called back to ask whether my college was applicable. It wasn't. She told me that during these times their lenders are only willing to finance courses in the US.
The counsellor knew this all along and simply wasted my time and money. She tried to persuade me to apply to the US.
Those who are not applying to US universities, ignore Paras. Those that are, proceed with caution. Their fees are fairly steep and you might lose a few thousands only to find out whether you are eligible or not. They refuse to name their lenders.
Although the name sounds like a trust or a welfare organisation, Paras is a commercial company. Have no doubts about it.
i am curently in the states pursuing my studies in the university of southern california. i got my loan sanctined by paras, i had started my procedure some where around oct-nov, their process seemed smooth n hassle free, hence i would recommend this foundation over the bank.
I am quite happy n relieved! You may check them out!!
I am quite happy n relieved! You may check them out!!
Hey !
Congrats ! So, how much did they charge u as the transaction fee and how much loan did u get ?
Even i tried this org but they said that they r not processing the non-US universities these days. However, i know that they r aware of this thing earlier but they then asked me to pay Rs 400 before giving any info. So, everybody's first impression is that they are thugs..
And i know other ppls with the same opinion. So, can u plz comment on that ?
i am curently in the states pursuing my studies in the university of southern california. i got my loan sanctined by paras, i had started my procedure some where around oct-nov, their process seemed smooth n hassle free, hence i would recommend this foundation over the bank.
I am quite happy n relieved! You may check them out!!
well i dunno about the Non US Schools, but according to me they are genuine ! ne ways best of luck !!