Education Loan Options for Students Pursuing Technical or Vocational
Education Loan Options for Students Pursuing Technical or Vocational.Hence, post-secondary learning, especially in the current world requires emphasis as a way of attaining professional aims. However, a traditional Baccalaureate, Master and Doctorate in fields such as engineering, medicine, and law still hold much recognition and value, while technical and vocation courses are gradually drawing more recognition. These course provides for improved educational and vocational training with emphasis on fields such as; Information Technology, Health Care, Tourisms, and many trade fields such as electrical, carpentry, plumbing, and many construction trades. However, the cost of education is generally high, even for vocational and technical courses, hence is may prove a nightmare for the feeing students or their families.
In this particular article, the author will seek to explain different types of loan regimes that are offered to students who are enrolled in technical or vocational education. Students, who are coming back or those who are entering this area to start practicing their desired profession, should take these variables into account in choosing an education/training course.
Why Do Students Opt for Technical or Vocational Education?.
Vocational or Technical courses as they are commonly called are intended to prepare students for specific course related job opportunities in their favor. These courses take relatively shorter time to complete than other degree programs and focus on practical and real life skills designed to acquire employment upon the completion.
Some key benefits of pursuing technical or vocational courses include:
Job-oriented learning: These courses target job relevant competencies that are relevant in businesses and organizations.
Shorter duration: Such vocational courses take learners from 6 months to 2 years on average to finish and that makes them take less time to join the workforce.
High employability: Technical skills are very much valued by employers across many industries such as information technology, health care and trade industries.
Lower cost: Although these vocationally oriented programs are cheaper than conventional college style programmes, the investments may act as a barrier for most of the students.
This is where education loans come in, they are financial help for students who may need financial aid in financing their vocational or technical education.
There are two types education loans for vocational and technical courses which include –
Private and pubic sector banks with NBFCs partner to provide education loans that cater for vocational and technical learning institutions. Below are some popular loan options:
1. Government sponsored education loan schemes
The Indian government has set out various education loan schemes forlearners intending to undertake vocational courses. They mainly attract lower interest rates and the repayment terms are also fairly moderate.
Skill Loan Scheme: Declared under the provision of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the Skill Loan Scheme serves as a loan scholarship granted to the students who want to attend vocational programs. The lending sums vary between INR 5,000 and INR 1.5 lakhs depending on the course period. There is an agreed period of 3-7years for the repayment of loans, and are usually cheaper than private loans. This scheme is especially advantageous to the students who belong to the economically weaker section.
Vidya Lakshmi Portal: To note, this portal is developed by the Indian government to enable students to apply for education loans online. It is an unified portal where student can find all the education loan schemes available in different banks and for vocational & technical education etc.
2. Bank Education Loans
Some of the loan providers include student loans for vocation or technical courses in India. It has flexible terms and condition depending on the bank, the course and the qualification of the student seeking the loan.
State Bank of India (SBI) Education Loan for Vocational Courses: SBI provides credit facility for vocation course under the banner of “SBI Skill Loan Scheme.” The loan amounts are between INR 5000 and INR 150000 with flexible loan tenures of up to 7 years for loan repayment. It also covers expenses for instance costs of tuition, cost of exams and any other cost that will be incurred while taking that course. SBI’s education loan has a feature of easy repayment as well an easy processing to avail the loan.
Bank of Baroda Vocational Education Loan: Customers need to apply in Bank of Baroda for education loan for technical and vocational courses, up to INR 1.5 lakhs limit with minimum of INR 20000. Repayment period is standardized, it ranges from 3 to 7 years and no collateral will be demanded from the borrower for small amount of loan.
Punjab National Bank (PNB) Udaan Scheme: This scheme is exactly for vocational courses, which include education loans from INR 10,000 to INR 1.5 lakhs. The Udaan Scheme has been designed to support students from rural and semi-urban background by providing more affordable vocational education to disadvantaged student.
Education Loan Options for Students Pursuing Technical or Vocational
Education Loan Options for Students Pursuing Technical or Vocational3. Non Banking Financial Company (NBFCs)
NBFCs also give education loans for vocation and technical courses; in many cases their conditions are more favourable than those of bank. Nonetheless, the interest rates could a little higher than the fixed one.
HDFC Credila: It is good education loan company of India which provide loan for vocational courses in India and overseas at HDFC Credila. They can borrow up to INR 20 lakhs based on a student’s requirement and the cost of a course. HDFC Credila also offers special flexi payment options for the borrowers and EMI or Equated Monthly Installments plans.
Avanse Education Loans: The other famous NBFC is Avanse which provides education loans for vocational courses also. Avanse loans involve fee Component loans for tuition fees, hall and board, transport, and cost of books. Loan repayment ranges with flexible repayments and it is repayable after the course completion.
4. These loans have some special features including that there are private individuals and online resources that offer such loans.
Over the past few years, several private lenders and online forums can be availed with education loans, easy process, and documentation formalities. These lenders offer student loans to those transection, seeking vocational and technical education, at different interest rates and repayment terms.
Bajaj Finserv: Bajaj Finserv provides a low interest personal loans for such expenses which included expenses on vocation and technical courses. Loan amounts range up to INR 25 lakhs; the approval time is also relatively short. They are subject to competitive rates of interest, and there are no surprises concerning the charges.
InCred: InCred is a debt consolidation company that offers education loans to technical and vocational courses. Flexible repayment terms and less paper works make the availability of the loan easier for the students.
Requirement for Vocational Education Loans
The important conditions for availing education loans for technical and vocational courses might not be similar with all the financial institutions. However, some common factors include:
Nationality: The student must have the citizenship of India.
Age: In general, students up to the age of 35 years are given the vocational education loans Most often, students between sixteen and thirty five years are given the vocational education loans.
Course: The loan should be for a standard vocational or technical course, which is recognized by the respective banker or NBFC.
Academic Background: Some of the institutions may require students to demonstrate their academic performance or produce documents of previous learning.
Guarantor/Collateral: In cases of a large number of loans, some banks may accept a guarantor, or accept a form of collateral based on the amount of money needed to be borrowed.
Essentials To Look For Before Choosing A Loan Company
When selecting an education loan for a vocational or technical course, students should consider several factors to ensure they choose the best option:
Interest Rates: Learn more about the interest rates you will be offered by various institutions such as banks and NBFCs as well as online lending firms.
Repayment Terms: Pick the reimbursement terms so that you begin repaying after the completion of the course that you are applying for.
Additional Costs: Some are for tuition fee only while others include other costs such as accommodation, travel and study expenses.
Processing Time: The steps for applying for a loan should be quite easy and should not hinder your enrollment in a university.
Conclusion
Technical or vocational course lead to so many career directions but the aspect of financing will be a main problem. Nevertheless, under different government education loan schemes, banks including nationalised NBFCs, and private lenders provide education loans specially designed for vocational and technical courses. Thus, learning about your choices and the jargon will help you choose a financial product for achieving your learning and employment dreams.
Take your time and first and foremost compare the eligibility criteria, the conditions of the loans offer and the ways and conditions of repayment in order to make the right decision according to your financial and life plans. This is why with the proper education loan, you can open the door to vocational training and take that all important step towards a fruitful fulfilling career.
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