All public sector as well as private sector banks offer educational loans for the students aiming for higher education in foreign countries or in India, but due to global meltdown prospectus of jobs have declined, even peoples are getting pink slips and after finalisation of next central government the process of cost cutting will increase so what should be the precautions while you are taking loan. How do you know about it.
First of all it is very difficult to compare the rate of interest charged. It is common phenomena peoples think that private banks charges more interest but they provide loan and quickly without any hassles while government / public sector banks charges less interest but to getting loan from these banks is very difficult because of formalities involved and bureaucracy. Normally securities like your house, jewellery, fixed deposits, other assets are asked against disbursement of loan. In public sector banks may be you need to pay commissions (actually bribe) to the concerned authorities through the mediators.
Secondly are you sure what are the chances of placement after completion of course. What package you will got and what is repayment plan for loan availed.
Thirdly, does the bank offers any discount or charge interest as per availed period if you pay early or before completion of specified time period.
Frankly if you see all those things you will be not able to avail loan because it is a time consuming process and no bank will provide all this information. Actually when bank gives you loan, they shows that it is a obligation which irritates every person availing loan because he is paying interest and giving loan is a investment by bank so why they shows that it is a obligation?
Send me your views on same.