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University of New Brunswick

Simmidas

Hero Member
Mar 19, 2019
464
151
Any specific reason for no student loan for St. Mary?
Really not sure what is the benchmark that Bank follows but while applying for a student loan at SBI, I got know that they follow the ranking as per webometrices.info . In Banks like ICICI, AXIS and HDFC, collateral free loan amount depends on the reputation of the university. Top universities like UBC, UoT can get collateral free loan upto 40 Lakhs, universities like uVic upto 20 lakh, but when I checked for Ryerson it was only 7.5 lakh. Maybe the amount depends on something like top 10 universities will get upto 40lakh, top 10-20 upto 20 lakhs and rest 7.5 lakhs. In Axis bank even the program name should be available in their list and the program which I finalized was not listed so they denied the collateral free loan. Also, These banks with provide loan mostly on STEM and MBA programs. Above info is purely based on my experience.
 

babachill

Hero Member
Nov 4, 2018
200
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I am in banking .. almost 12 years .. almost like your profile.. bachelors in IT , work experience in management .. gap of 12 years .. so i think you would connect why I am seeking your advice .. How did you apply to university of Regina .. as I think they need IELTS before applying..
Really not sure what is the benchmark that Bank follows but while applying for a student loan at SBI, I got know that they follow the ranking as per webometrices.info . In Banks like ICICI, AXIS and HDFC, collateral free loan amount depends on the reputation of the university. Top universities like UBC, UoT can get collateral free loan upto 40 Lakhs, universities like uVic upto 20 lakh, but when I checked for Ryerson it was only 7.5 lakh. Maybe the amount depends on something like top 10 universities will get upto 40lakh, top 10-20 upto 20 lakhs and rest 7.5 lakhs. In Axis bank even the program name should be available in their list and the program which I finalized was not listed so they denied the collateral free loan. Also, These banks with provide loan mostly on STEM and MBA programs. Above info is purely based on my experience.
Thanks for saving my time, your experience will help many,. bank loan was another pain area which you have solved 25% already.. This lock down has come with a blessing. Cheers.
 
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Rita2929

Full Member
Feb 1, 2020
27
3
Hey .. Can you pls suggest how should we do funding for our course .. like how much loan is easily given to students and how much funds we should show in acc apart from GIC
 

babachill

Hero Member
Nov 4, 2018
200
50
Hey .. Can you pls suggest how should we do the funding for our course .. like how much loan is easily given to students and how much funds we should show in acc apart from GIC
GIC certificate only - no other financial documents are required under SDS.
Loan varies from bank to bank but you need a co-applicant in both with or without collateral, interest rates are 11-14% without collateral and 7-9% with.
 
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Simmidas

Hero Member
Mar 19, 2019
464
151
GIC certificate only - no other financial documents are required under SDS.
Loan varies from bank to bank but you need a co-applicant in both with or without collateral, interest rates are 11-14% without collateral and 7-9% with.
I would like to add points to the above,
1. One year tution fees to be paid in advance under SDS
2. GIC to cover 1 year living expenses
3. Above two documents would have been good under normal conditions for SDS but to make our case strong it would be great to project some additional amount to cover 2nd year tution fees and living expenses and give an explanation in LOI
4. If you are mature Student, then a net worth certificate from CA would be great to show home ties.

Please note point 3 and 4 is not a Visa requirement but nice to have. With regards to Loan, SBI rate of interest is 8.5 to 9% (you may not get collateral free loan from SBI). ICICI, Axis and HDFC is 11% with collateral and 12% without collateral. If your credit rating is good and opted of decent university and have someone whose monthly take home is above 70K inr to become your garuenter then you can get a collateral free loan from a private bank. Here, is also something I would like to share: if you have an existing home loan, then you take an additional student loan from the same bank using this home loan property as a collateral. Including SBI all banks will give. At last, there are many student loan aggregators available and thier services are quite good and it's all free. Like Wemakescholars, gyandhan. I have taken help from Wemakescholars to get a student loan from SBI. There are many private players as well who can finance your student loan like prodigy Finance.
 

babachill

Hero Member
Nov 4, 2018
200
50
I would like to add points to the above,
1. One year tution fees to be paid in advance under SDS
2. GIC to cover 1 year living expenses
3. Above two documents would have been good under normal conditions for SDS but to make our case strong it would be great to project some additional amount to cover 2nd year tution fees and living expenses and give an explanation in LOI
4. If you are mature Student, then a net worth certificate from CA would be great to show home ties.

Please note point 3 and 4 is not a Visa requirement but nice to have. With regards to Loan, SBI rate of interest is 8.5 to 9% (you may not get collateral free loan from SBI). ICICI, Axis and HDFC is 11% with collateral and 12% without collateral. If your credit rating is good and opted of decent university and have someone whose monthly take home is above 70K inr to become your garuenter then you can get a collateral free loan from a private bank. Here, is also something I would like to share: if you have an existing home loan, then you take an additional student loan from the same bank using this home loan property as a collateral. Including SBI all banks will give. At last, there are many student loan aggregators available and thier services are quite good and it's all free. Like Wemakescholars, gyandhan. I have taken help from Wemakescholars to get a student loan from SBI. There are many private players as well who can finance your student loan like prodigy Finance.

Have a question here, can banks sanction the loan for a complete course If the collateral is of lesser value than the course fees?
 

Simmidas

Hero Member
Mar 19, 2019
464
151
Have a question here, can banks sanction the loan for a complete course If the collateral is of lesser value than the course fees?
In most cases the loan amount is 80% - 90% of the collateral value.
The other way is to take the 90% of the collateral value and show the remaining amount from your pocket that you have the capacity to pay the whole tution fees.
 

babachill

Hero Member
Nov 4, 2018
200
50
In most cases, the loan amount is 80% - 90% of the collateral value.
The other way is to take 90% of the collateral value and show the remaining amount from your pocket that you have the capacity to pay the whole tuition fees.
Are the interest rates floating? & when does the EMI start? SBI specially,. I am starting the process.
 

Simmidas

Hero Member
Mar 19, 2019
464
151
Are the interest rates floating? & when does the EMI start? SBI specially,. I am starting the process.
Interest rates are not floating.

The actual repayment of loan (Interest+Principal) starts after the completion of moratorium period. During during this moratorium period only simple interest is charged which can be accumulated or paid subsequently. The moratorium period depends on the length of the program. For e.g. if the program length is 2 years then the moratorium period would be 2+1 year for SBI and 2+6 months for all others. Hence, you will have 3 years to actually start repaying your loan and it is advisable to pay the moratorium period interest so that it doesn't get compounded while making actual payments. For e.g. on 20 Lakh loan taken for 10 years on 9% rate of interest, the interest would be around 10k per month for three years otherwise this amount will get added to your 20L loan and make it 23.6 lakh and your EMI calculation would be based on 23.6 lakh.
 

babachill

Hero Member
Nov 4, 2018
200
50
Interest rates are not floating.

The actual repayment of a loan (Interest+Principal) starts after the completion of the moratorium period. During this moratorium period, only simple interest is charged which can be accumulated or paid subsequently. The moratorium period depends on the length of the program. For e.g. if the program length is 2 years then the moratorium period would be 2+1 years for SBI and 2+6 months for all others. Hence, you will have 3 years to actually start repaying your loan and it is advisable to pay the moratorium period interest so that it doesn't get compounded while making actual payments. For e.g. on 20 Lakh loan taken for 10 years on a 9% rate of interest, the interest would be around 10k per month for three years otherwise this amount will get added to your 20L loan and make it 23.6 lakh and your EMI calculation would be based on 23.6 lakh.
I had a word with Canara Bank branch manager, said I can apply for up to 14 lac Edu loan without collateral to study abroad and up to 7 for India, however, need to have a strong third party guarantee or co-applicant. Better to apply for a loan from where an existing loan is disbursed. 8-9% ROI & advised me to stick with govt banks only. I will keep things posted for more updates.
 
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Simmidas

Hero Member
Mar 19, 2019
464
151
I wanted to update you all that my Education Loan has been approved by SBI Bank finally after 1.5 months of hassle