FD RELATED QUERY..... PLS HELP.....

[abhi.m]

I HAVE 13.5 LACKS IN MY OWN SAVINGS ACC OF ICICI BANK. & I WANNA GO WITH LOAN AGAINST FD.

1) HOW TO APPLY FOR LOAN AGAINST FD??

2) CAN I CONVERT MY SAVINGS INTO FD NOW AND GET A LOAN AGAINST IT OR DOES THE FD NEEDS TO BE FEW MONTHS OLD TO GET A LOAN AGAINST IT??

3) IF I CAN GET A LOAN LIKE THIS, HOW MUCH CAN I GET FROM 13.5 L?? AND HOW QUICKLY CAN I DISSOLVE THE LOAN??

4) MY FATHER IS RETIRED & EARNING ONLY 6000RS/MNTH AS PENSION AND I AM NOT WORKING NOW. IS THIS GONNA A PROBLEM OR NOT??

PLEASEEEEE REPLY FOR ALL 4, AS THEY R EQUALLY IMP.....

THANKS A LOT IN ADVANCE.....

 

[neeraj1985]

I HAVE 13.5 LACKS IN MY OWN SAVINGS ACC OF ICICI BANK. & I WANNA GO WITH LOAN AGAINST FD.

1) HOW TO APPLY FOR LOAN AGAINST FD??

2) CAN I CONVERT MY SAVINGS INTO FD NOW AND GET A LOAN AGAINST IT OR DOES THE FD NEEDS TO BE FEW MONTHS OLD TO GET A LOAN AGAINST IT??

3) IF I CAN GET A LOAN LIKE THIS, HOW MUCH CAN I GET FROM 13.5 L?? AND HOW QUICKLY CAN I DISSOLVE THE LOAN??

4) MY FATHER IS RETIRED & EARNING ONLY 6000RS/MNTH AS PENSION AND I AM NOT WORKING NOW. IS THIS GONNA A PROBLEM OR NOT??

PLEASEEEEE REPLY FOR ALL 4, AS THEY R EQUALLY IMP.....

THANKS A LOT IN ADVANCE.....

Hi Abhi,


My suggestion would be to go for an education loan against FD to get the loan approval fast. Don't take the loan from ICICI bank as they don't have the education loan facility anymore. They may give you an alternative to it but even then their interest rate is much higher, as compared to few public sector banks. So, if possible go for education loan from a public sector bank.

Regarding your questions:

(i) You can apply for loan online through banks website. Check out UCO bank, dena bank and they normally respond to your request within 5 days and will call you back. On their website clearly state you want education loan by placing some amount under their bank in the form of a FD. This way processing is much faster.

(ii) Yes, you can convert your savings into FD anytime and there is no tenure requirement before you use FD for loan purposes.

(iii) Normally for education loans against FD banks keep a margin of 10 percent of the loan amount. For Example, you want a loan approval for 12 lakhs. In this case, the bank would expect you to place an FD of 12 lakhs plus 10 percent of 12 lakhs (Rs 13,20,000). Depending on whether you've used the loan amount and any applicable penalties, you can dissolve the loan anytime after the deduction of loan amount used and any penalties from the FD amount.

(iv) The bank would expect you to pay the annual simple interest (on the loan amount used and not approved) on a quarterly/bi-annually/ annually basis while you're still studying at the college/university. The rate of interest for banks is approx 13 - 16 percent per annum. The parents are a co-applicant in the application and would have to assume the responsiblity of this interest payment. Since, there is a regular income stream in the family though the amount is low, this should not be much of a problem for you.

Hope this helps, best of luck

 

[abhi.m]

THANKS NEERAJ THAT WAS GREAT TO HEAR THOSE RESPONSES FROM U.

BY THE WAY, NEERAJ/ OTHERS, MY FEES IS 13800/YR AND LIVING EXPENSES ARE 10000/YR AND TRAVEL EXP ARE 3000/YR.

MY CONSULTANT IS ASKIN ME TO PAY OFF THE WHOLE 1ST YR TUITION FEE INSTEAD OF 1ST SEMESTER FEE. IF I GO ACCORDIN TO HER, DO I JUST HAVE TO SHOW 13000CAD IN THE FORM OF LOAN?????

ALSO, IS IT GONNA BE ANY BENEFICIAL , IF I PAY THE WHOLE ONE YR FEE FOR THE VISA?????

THANKS ALL.....

 

[abhi.m]

Hi Abhi,


My suggestion would be to go for an education loan against FD to get the loan approval fast. Don't take the loan from ICICI bank as they don't have the education loan facility anymore. They may give you an alternative to it but even then their interest rate is much higher, as compared to few public sector banks. So, if possible go for education loan from a public sector bank.

Regarding your questions:

(i) You can apply for loan online through banks website. Check out UCO bank, dena bank and they normally respond to your request within 5 days and will call you back. On their website clearly state you want education loan by placing some amount under their bank in the form of a FD. This way processing is much faster.

(ii) Yes, you can convert your savings into FD anytime and there is no tenure requirement before you use FD for loan purposes.

(iii) Normally for education loans against FD banks keep a margin of 10 percent of the loan amount. For Example, you want a loan approval for 12 lakhs. In this case, the bank would expect you to place an FD of 12 lakhs plus 10 percent of 12 lakhs (Rs 13,20,000). Depending on whether you've used the loan amount and any applicable penalties, you can dissolve the loan anytime after the deduction of loan amount used and any penalties from the FD amount.

(iv) The bank would expect you to pay the annual simple interest (on the loan amount used and not approved) on a quarterly/bi-annually/ annually basis while you're still studying at the college/university. The rate of interest for banks is approx 13 - 16 percent per annum. The parents are a co-applicant in the application and would have to assume the responsiblity of this interest payment. Since, there is a regular income stream in the family though the amount is low, this should not be much of a problem for you.

Hope this helps, best of luck

;0

tHANKS NEERAJ JUST ONE QUICK QUESTION I APPROACHED THE BANKS AND THEY R SAYING (AS U SAID) THAT THEY ARE READY TO GIVE ME 90% OF MY FD.
BUT THEY SAID THEY WILL DEPOSIT THAT LOAN AMOUNT INTO MY LOAN OWN ACCOUNT -- NOT TRANSFERRING FEE DIRECTLY TO THE COLLEGE..... WILL THIS BE A PROBLEM FOR THE VISA?????

SECONDLY THEY ALSO SAID THE LOAN LETTER WONT* BE SHOWING THAT THE FUNDS CAN BE USED FOR EDUCATIONAL PURPOSES IN CANADA ISTEAD I MAY SAY THEY CAN USED FOR ANY PURPOSES. IAM WORRIED ABT THIS IF NOT IT WOULD HAV BEEN AN EASY PROCESS. PLEASE GIV ME UR IDEAS BASED ON THESE TWO ISSUES.....

THANKS A LOT.....

THANKS A LOT.....

 

[abhi.m]

neeraj , can u please help me out with my query in my last post.....
thanks!

 

[Jitu1011]

Hello Abhi,

I have done all these formalities three years back in 2009 and can suggest you hassle free way of doing these things.
I got my Study Visa application done thru CANAM, (Delhi) which i find most genuine and better than all other, though my cousin and other mates have some good reviews for "Chopras" but Canam was most economical as well. They charged my just Rs5000/- those days and helped in all paper work in most appropriate manner.

You may find the SPP program (Financial Assistance from Govt bank) to support your application, I received education loan from Oriental Bank Of Commerce and if you live around Delhi and Faridabad I can help you in that as well. I will suggest you to visit public sector bank branches (preferably in cannaught place) and they will need a applicant sponsor who need to guarantee you, so in this case if your father/mother file loan and act as guarantor you can actually use your FD as lien.

Secondly you need not deposit complete amount of fees and neither bank need to transfer fees directly to institute. In my case at that time fees was CAD11200 and I deposited first installment on my own and I took CAD10000 loan from bank to support my Study VISA. I paid my next semester fees from that CAD10000 and rest I worked and paid my living expenses from earning.

I will strongly suggest, do not take any loans (if your financial situation allows you) as you will be paying lot of interest and I feel sorry that new students have to buy at high exchange rate of 1$=INR54 compare to what we spent $1-INR41.5

you need a loan approval letter from public sector bank and not even need to disburse the loan and it will help you in your VISA application.

I hope information will be useful to you.

Cheers