Study Loan in India- Few Queries

[GS_Stud]

Hi All,

This query is about study loan in India. For SPP, I need to show a bank loan approval of Rs 9 lakhs.

Q1. Can anybody share his/her experience about the time lines of education loan process in India? How much time do Indian Government/Private Banks take to give the loan approval letter?

Q2. Can anybody recommend a bank (Government or a Private) which issues the loan approval letter fast and with less paperwork?

Q3. Most bank offer loan up to 7.5 lakhs. If we need to 9 lakh, then what can we do (can we create a FD of 2 lakhs in the same bank if we get the approval of 7.5 lakh to make it 9 lakh)?

Q4. I have heard that most Indians who do not have IT returns take 9 lakh loan on 10 lakh FD. Is this correct and which bank can/does give loan on a FD?

Q5. If we take loan on a FD, can we later cancel the loan and get the FD money back? I understand there might be some cancellation charges but do bank allow that (breaking FD to cancel the loan)?

Thank you very much for reading this post and hope to hear from some of the members about their experience about bank loans.

Thanks,
Gurpreet

 

[GS_Stud]

Hope somebody who has taken a student loan in India can respond.

Thanks in advance.

-GS

 

[Obeid_oo]

Hi Gs

A1. A friend of mine had applied for loan last year in INDIA for SPP it took around 25 days for the loan to be sanctioned, his loan amt was 11lakhs. I think the timeline depends on the amount.

A2. Go for any state owned banks not private.

A3. I think if your FD amount is more like 3 - 4 lakhs then you would probably get upto 9 lakh loan.

A4. I am not sure about this , you can ask the state bank about that to be sure.

A5. Every bank has there own rules and conditions for loan so it depends on bank , there is no general guideline here

hope this helps

 

[GS_Stud]

Thanks Obeid,

It was very helpful. I'm trying to get the loan approval asap so that I can file my SPP application and get the visa.

Tickets are much cheaper if they are booked before 3 months in advance.

Thanks,
GS

 

[ShijoK]

Hi all!

I have gotten admission in Seneca. Its a 1 year post grad certificate course. My question is about the loan and the subsequent granting of visa. I will be filing for visa under SPP (india).

My total tuition =12000 CAD. I'll pay the first semester fee(6000) on my own and want to take a loan for the other semester fee (6000 CAD) + Living (11000). I have filed for a loan of 7.5 Lacs. I am not sure that will suffice. I thought we had to show 80% of (living + tuition) not 80% tuition and 100% living. What do I do now? My financial sources are limited and I cannot take a loan of more than 7.5, i.e. I cant give a collateral. I am very worried. My program starts in Sep 2011. I am not sure if I can get a visa with that much By what date - latest can I file for visa?

I would really appreciate some quick advise.

Thanks,

 

[netchaos]

@ Shijok

According to SPP checklist you need to submit,
"Copy of an Educational Loan from an Indian Chartered Bank equivalent to at least 80% of tuition +living + travel expenses for one academic year (normally, first year's tuition, unless already paid, plus $8000)."

In your case, first year tuition 12000 + expenses 8000 = 20000. As you are paying first semester from your pocket, the remaining is CAD14000 (20000 -6000). CAD14000 in INR =~ Rs. 6,30000. So technically you are good to go, rest is up to the visa officer.
Best of luck

 

[GS_Stud]

@ Shijok

According to SPP checklist you need to submit,
"Copy of an Educational Loan from an Indian Chartered Bank equivalent to at least 80% of tuition +living + travel expenses for one academic year (normally, first year's tuition, unless already paid, plus $8000)."

In your case, first year tuition 12000 + expenses 8000 = 20000. As you are paying first semester from your pocket, the remaining is CAD14000 (20000 -6000). CAD14000 in INR =~ Rs. 6,30000. So technically you are good to go, rest is up to the visa officer.
Best of luck

Not exactly,

I had asked this question to VO in a seminar in New Delhi. They told us: "For SPP, we need exact 80% of amount as loan approval. If you take anything less than that, then you can submit it but we will treat it as a general application."

Having said that, in India getting an educational loan above 7.5 is not easy. In addition, there are some other issues which discourage people (including me) to apply for a loan.

I was very interested to take a study loan and apply as SPP but due to the issues, paperwork and time involved, I decided to apply as a General category applicant.

Though a general assumption is that SPP will guarantee a visa, I see many instances where SPP candidates were rejected. Many of those who were rejected even in SPP are active in this and other forums.

If getting a study loan of 80% is difficult, take a study loan of 7.5 lakh and apply as a general applicant.

GS

 

[ShijoK]

@netchaos: thanks man! That's what I've been thinking, the CIH site says 8000 CAD I had written to them as well about whether I should consider 8000 CAD or 11000CAD (according to me admission letter) they just redirected me to the same link - the one with the SPP checklist.

Besides, I think 11000CAD is bloody high, I dont think living is that expensive. BTW, do banks give loans incase a student goes for off campus boarding?

@GS and @netchaos

Technically, I am showing them 80%. You see 80% of tuition + 11000 CAD = something like 7,26000 CAD (considering rate of exchange as 46), I am just barely scraping through. I think I should be given a visa.

Any advise on the banks, which are willing to give edu loans?

Thanks u both for your replies,
ShijoK

 

[GS_Stud]

Technically, I am showing them 80%. You see 80% of tuition + 11000 CAD = something like 7,26000 CAD (considering rate of exchange as 46), I am just barely scraping through. I think I should be given a visa.

Any advise on the banks, which are willing to give edu loans?

Thanks u both for your replies,
ShijoK

I had attended a seminar in which Visa Offcier from New Delhi CHC gave a presentation. Afterwards there was a QA session (in which I asked this question as I was in the same boat).

I had asked the same question, that if I pay 3 lakh tuition fees from my own pocket, and then show a loan of 7.5 lakhs (making it 80%), will it be fine. They said it will be fine as a general applicant, but not as a SPP.

The reason they gave is that Bank gives loan on basis of your financial condition and they want to assess that. For SPP, 80% is the amount "required" to be approved as a loan, anything less than that you can always submit but it will not be considered as a SPP and will be treated as a general application.

They said even for general application they prefer education loan as proof of funds.

There is no harm in applying as a general applicant. If you want, you can directly contact CHC regarding this question.

GS

 

[ShijoK]

@GS

are u sure about how much should I consider as living 11000 CAD or 8000 CAD?

or whether 80% of total (tuition+ living) has to be shown or 80%(living + tuition). And I dont think visa officers give seminars, its usually college people coz I attended a few too.

Besides in general category, I think u can also show savings while in SPP u cannot. So in general category, one can take a loan of even less than 7.5

and 7.5 is 80% not less, so I can still file under SPP.

What do u say?

 

[Obeid_oo]

@ GS

are u sure about how much should I consider as living 11000 CAD or 8000 CAD?

or whether 80% of total (tuition+ living) has to be shown or 80%(living + tuition). And I dont think visa officers give seminars, its usually college people coz I attended a few too.

Besides in general category, I think u can also show savings while in SPP u cannot. So in general category, one can take a loan of even less than 7.5

and 7.5 is 80% not less, so I can still file under SPP.



What do u say?

HI shijok

There was a seminar held by CHC delhi officers last month.

The CHC - Delhi website had updated about it one month ago .

Although I did not attend it but I can assure you that it was conducted

 

[ShijoK]

Can anyone tell me if Iit is a good idea to change my visa category from SPP to general and how many years student and work visa will I get if I do so.

Also, how do I contact CHC now? I am flippin now

@GS: emails take very long to be responded by CHC and I dont have time.

Thanks
ShijoK

 

[ShijoK]

like seriously I need HELP please reply to the above message

ShijoK

 

[GS_Stud]

@ GS

are u sure about how much should I consider as living 11000 CAD or 8000 CAD?

or whether 80% of total (tuition+ living) has to be shown or 80%(living + tuition). And I dont think visa officers give seminars, its usually college people coz I attended a few too.

VO said that they take the tuition fees, and the living cost numbers from the admission offer letter. Whatever your admission letter says (the first page) about estimated tuition and living fees are the numbers they will consider. In my case (Toronto based college), it was given 11,000 mentioned as living expenses.

In my case, 80% was near 9 lakhs so I didn't applied for SPP as I too was getting a loan sanctioned as 7.5 only.

Read this thread about the seminar: http://www.canadavisa.com/canada-immigration-discussion-board/chc-seminar-highlights-important-information-regarding-student-visa-application-t69146.0.html

@ GS
Besides in general category, I think u can also show savings while in SPP u cannot. So in general category, one can take a loan of even less than 7.5

and 7.5 is 80% not less, so I can still file under SPP.

What do u say?

The VO said that they are not financial experts and the best and easiest way for them to assess a financial condition is by looking at the loan approval amount, since Banks are expert in assessing a candidate's financial situation and will issue a loan only if the candidate has a strong background. The other financial instruments they said were FD, Bank Statement, IT Returns, Share Certificate etc.

They said they do not consider land record, crop sale letter, jewellary evaluation and other documents which they cannot access.

- GS

 

[ShijoK]

@ GS

hmm... I am confused now.
tudy permit + 1 year
So how much loan and savings do I show in general category. and what docs are required to file under the general category ? CAn u gimme the link ?

i mean is 7.5 lacs of laon + 1 lac of savings enuff?

And do I still get 1 year of study + 1 year of work permit in general category?