Red Alert: Education Loans For Foreign Degree Denied!!
Posted on October 26, 2008 in Education by Shayani
There is a bit of not so good news for students who aspire for foreign education. It is because that it may be a bit of difficult to fund foreign education starting the coming academic session.
The Reasons Behind This Move
- Pink Slips: With MNCs distributing pink slips almost every other day plus the prospects getting worse abroad, banks are deciding to make tighter their existing norms on education loan. They are also considering on lowering of the collateral requirement limits for destinations: the UK & USA.
- Aviation Sector Problem: That is not the end of the story. Availing loan for a second or third rung university of these countries would be a hard task. If sources are to be believed, HDFC Bank has decided to be strict in lending for the aviation sector (one of the many) students.
- Market Dwindling: Bankers consider the move to be logical and sensible for the banking system. The banking sector is already facing music due to downslide in equity markets. This move is a means of saving itself from worse times in the future.
- Duration Of Programs Short: A major problem will affect students who want to go abroad at this moment. This would mean that Indian students who want to pursue their Masters Degree programs now will come under the present bank policies. The Master’s Degree Programs are of twelve to eighteen months abroad. This means students who want to go now would face the problem of not getting the loans.
- Lesser Known Universities: Another problem would be if the university the student is opting for is lesser known, because the banks are not going to burden itself with any kind of risk.The banks are hoping for stabilization after a period of a year and a half.
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