EDUCATION LOANS vs LOAN SCHOLARSHIPS

We have come across a lot of students who either don’t know what loan scholarships are, or confuse them with education loans. We did try to enlighten you about loan scholarships in one of our previous articles, but the tangling still seems to remain. And, it is not your fault as a student that there is a lack of comprehension for the term loan scholarships, as infrequently the term is used, as less are the no. of loan scholarships available, we here will you help you with the complete difference between education loans and loan scholarships.

Education Loans

Education loans and loan scholarships can be differentiated on the basis of the following parameters-

  1. Age Criteria

There is a specified age criteria for education loan which says that a candidate between 16-35 years of age can apply for the loan, whereas for loan scholarships, the age criteria differs from provider to provider. Applicants need to check the eligibility criteria stated by the provider and apply accordingly.

  1. Time taken to receive the money

Education loans from banks usually take at least 15 days to get sanctioned whereas, in case of loan scholarships, the procedure of receiving the money is a little time consuming as candidates are first short listed on the basis of their applications, and then they may be called for an interview and then further selection is done to come down to a decision whether the individual should be provided with the money or not.

  1. Amount

The amount of education loan taken can depend upon the need of an individual, including the fees of the course, accommodation charges, exam and library fees, books and equipment like computer and other reasonable expenses to complete the course. In case of loan scholarships, the amount provided depends on the fees of the course that an individual is willing to go for, as well as the provider’s maximum limit that he has stated, and till which he sanctions the loan scholarship.

  1. Interest Rate

The interest rate charged by banks on education loans ranges between 10 to 15% p.a., the interest rate charged on the loan for girls is comparatively less than that for boys and this interest, for both, boys and girls is charged right from the day the student has received the loan amount till the date that he returns it. Unlike this, the interest rate charged on loan scholarships is either too less or they are even interest free.

  1. Security

The education loan usually does not require any guarantor or collateral security in case of loan taken for part-time courses. But, in case of loan taken for full-time courses the security requirements are as follows-

  • Up to Rs. 4 lakhs – No security, but in this case parents needs to be a joint borrower
  • Between 4-7.5 lakhs- along with parents collateral security in form of third party guarantee
  • Above 7.5 lakhs- Parents to be joint borrowers + tangible collateral security of suitable value required.

students loan

Loan scholarships do not require any such security unless specifically stated by the provider in the procedure.

We hope that we have been able to successfully make a distinction between the loan scholarships and education loans, in order to find the suitable loan scholarships as per your need and requirement; you can register yourself on ScholFin.

Author: scholfin

ScholFin – India’s First Scholarship Search Engine

ScholFin - India’s First Scholarship Search Engine

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EDUCATION LOANS vs LOAN SCHOLARSHIPS

We have come across a lot of students who either don’t know what loan scholarships are, or confuse them with education loans. We did try to enlighten you about loan scholarships in one of our previous articles, but the tangling still seems to remain. And, it is not your fault as a student that there is a lack of comprehension for the term loan scholarships, as infrequently the term is used, as less are the no. of loan scholarships available, we here will you help you with the complete difference between education loans and loan scholarships.

Education Loans

Education loans and loan scholarships can be differentiated on the basis of the following parameters-

  1. Age Criteria

There is a specified age criteria for education loan which says that a candidate between 16-35 years of age can apply for the loan, whereas for loan scholarships, the age criteria differs from provider to provider. Applicants need to check the eligibility criteria stated by the provider and apply accordingly.

  1. Time taken to receive the money

Education loans from banks usually take at least 15 days to get sanctioned whereas, in case of loan scholarships, the procedure of receiving the money is a little time consuming as candidates are first short listed on the basis of their applications, and then they may be called for an interview and then further selection is done to come down to a decision whether the individual should be provided with the money or not.

  1. Amount

The amount of education loan taken can depend upon the need of an individual, including the fees of the course, accommodation charges, exam and library fees, books and equipment like computer and other reasonable expenses to complete the course. In case of loan scholarships, the amount provided depends on the fees of the course that an individual is willing to go for, as well as the provider’s maximum limit that he has stated, and till which he sanctions the loan scholarship.

  1. Interest Rate

The interest rate charged by banks on education loans ranges between 10 to 15% p.a., the interest rate charged on the loan for girls is comparatively less than that for boys and this interest, for both, boys and girls is charged right from the day the student has received the loan amount till the date that he returns it. Unlike this, the interest rate charged on loan scholarships is either too less or they are even interest free.

  1. Security

The education loan usually does not require any guarantor or collateral security in case of loan taken for part-time courses. But, in case of loan taken for full-time courses the security requirements are as follows-

  • Up to Rs. 4 lakhs – No security, but in this case parents needs to be a joint borrower
  • Between 4-7.5 lakhs- along with parents collateral security in form of third party guarantee
  • Above 7.5 lakhs- Parents to be joint borrowers + tangible collateral security of suitable value required.

students loan

Loan scholarships do not require any such security unless specifically stated by the provider in the procedure.

We hope that we have been able to successfully make a distinction between the loan scholarships and education loans, in order to find the suitable loan scholarships as per your need and requirement; you can register yourself on ScholFin.

Author: scholfin

ScholFin – India’s First Scholarship Search Engine

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