In india, Student loans are funds offered to the students in order to help them in pursuing higher studies & meeting the costs of professional education. The interest rate on student loans is usually a bit lower than other loans in order to promote and spread education,especially professional studies in the country. Student loans in india are usually offered/granted by the government banks or government supported institutions/agencies. In certain cases, the government may waive some amount of student loans,if it feels like.
Apart from govt. supported student loans,certain private players also exist in india. The biggest advantage of private student loans in india is that they unite the best elements of different government-supported student loans into one. Usually, Private banks offer higher loan limits on most of the student loans, to make sure that the student does not face any shortage of funds while meeting his actual expenses of studies.
However, many people in india criticize private student loans because of the higher interest rates charged. Also the fees charged for private student loans in india is high such as processing fees, file charges, etc. Lack of protections for the lenders of private student loans also refrains the growth of student loans in india. Private student student loans in india offer grace period to the students for about 6 months. This allows the student to complete his course tension free and look for a suitable job for himself without the acute pressure of repaying the loan.
