For many students in India, pursuing an MS in the US forms the basic building block of living the American way of life. Funding is a major cause of concern for many of them who are often unable to afford the high tuition fees and living expenses. Borrowing an education loan for their MS in the US is the only way out for such students. This is where the education loan schemes of numerous Indian banks and NBFCs come to their rescue.
What are the Benefits of Secured Education Loans For MS in the USA?
Interest rates are always in the range of 8% to 10% per annum.
The total loan amount significantly depends on the fair market value of the asset being pledged as collateral security.
Education loan co-applicants get to claim an income tax exemption based on their salary bracket. They can claim the same under Section 80 E of the Income Tax Act.
If the loan applicants are economically challenged, they may check for their eligibility and qualify for an education loan interest rate exemption under the various subsidy schemes introduced by the government of India.
Types of Assets Which Can Be Pledged As Collateral Security For Secured Education Loans For MS in US
Immovable Property: An immovable property is one of the most frequently pledged categories of assets as collateral against an abroad education loan for MS in USA. This category involves assets like a house, a residential flat, a plot with defined boundaries, an independent house, a non-agricultural land, etc. come under this category. The value of the property must exceed the total education loan amount required by candidates. This is a mandatory requirement and all candidates are required to meet this in order to get a government bank education loan to fund their expenses in the USA.
Liquid Security: Did you know that government banks do accept liquid assets as collateral against an abroad education loan for MS in US? Assets such as Fixed Deposits, government bonds, life insurance policies from government-approved lenders, etc. are accepted by government banks like the government banks, BoB, PNB etc. as collateral security.
Read more: https://www.wemakescholars.com/blog/ms-in-us-types-of-collateral-security-for-student-loans-in-india
