Sunday 27 March 2016

“Educational Loans @Your Doorsteps for Your Overseas Education” ―Professor M.S.Rao



"Choose a job you love, and you will never have to work a day in your life." — Confucius


If you intend to pursue overseas education but don’t know how to approach banks for educational loans, this post helps you have a fair idea on educational loans and the precautions you must observe while taking educational loans.

You can pursue educational loans through your consultant who has tie-up with a particular bank. If you have already paid consultancy fee to your overseas consultant, it is advisable to go through it.  If you don’t hire any consultant, you can approach both private and public sector banks to get the details of loans with rate of interests. They will guide you how much they can fund and the margin money you must have. When you approach private banks, find out the rate of interest and hidden costs involved in it. Usually the marketing executives from private banks don’t reveal everything to you. Hence, you must clarify your requirements to avoid hassles later. Here are some dos and don’ts that you must observe while taking education loans for your overseas education. 
  •  Read the brochure carefully before applying for educational loan to avoid springing last-minute surprises by your bank.
  • Compare the rate of interest from different banks. Find out the hidden costs involved. Some banks present rosy picture by promising moon and finally you end up finally paying more interest. Hence, be careful with banks. Have your queries clarified by the bank representative. If required, talk to his/her immediate manager to find out the facts. It helps you avoid burning fingers.
  • Ensure that you hit on the right bank with the right educational loan scheme to suit your needs.
  • Be careful with fluctuations in currency.
  • Take loan with protections. Don’t look only for rate of interest but look for flexible repayment terms as well.
  • You should pay EMI on time to avoid high penal interest.

If you approach private sector banks there is often a processing fee for your educational loan. Here are some details of bank loans from various sources for your reference.

Eligible expenses for education loan: Fees payable, accommodation charges, exam and library fees, reasonable expenses for books and equipment including computer, travelling expenses abroad and other reasonable expenses required to complete course.
Quantum of finance: Rs. 10 lakh for study in India and Rs. 20 lakh for study abroad. Banks may consider lending higher amount in special cases at their discretion.
Security: (a) up to Rs. 4 lakh- No security, parents to be joint borrower (b) between 4-7.5 lakhs- along with parents collateral security in form of third party guarantee (c) Above 7.5 lakhs- Parents to be joint borrowers+tangible collateral security of suitable value required.
Moratorium period for repayment: Course period + 1 year or 6 months after getting job, whichever is earlier
Margin money: Nil for loan up to Rs. 4 lakh. 5 percent and 15 percent respectively for study in India and abroad on loan above Rs. 4 lakhs.
Tenure of loan: 10 and 15 years for loan up to Rs 7.5 lakhs and above respectively

If you pay simple interest on the principal during the study period, your EMIs will be reduced to a large extent. Many banks also give a 1 per cent interest concession to those who repay the interest debited during the moratorium period.

Tax benefits: Under section 80(e) of the Indian income tax act, a person can exempt the amount paid against the interest of the education loan – either for self or for his/her spouse or children – for eight years from the year(s) he starts to repay the loan or for the duration the loan is in effect, whichever is more.

Research shows that there has been a sharp rise in the number of loan defaults. Hence, avoid the myth of viewing educational loans as a financial assistance which is not to be repaid.


Conclusion

Govt. of India encourages loans on education and housing provided you meet the requirements. Hence, you must plan ahead; do research; get the details; shortlist the best university as per your financial capacity; ensure funding from your bank at reasonable rate of interest; make room for contingencies; prepare yourself mentally; network with others; learn and work smart to acquire overseas education.

Good luck!


"All great changes are preceded by chaos." — Deepak Chopra

Reference

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Life is great!

Professor M.S.Rao, India
Founder of MSR Leadership Consultants India
Recipient of 10th International Prestigious Sardar Patel Award―2015
21 Success Sutras for Leaders: Top 10 Leadership Books of the Year (San Diego University) Amazon URL: http://www.amazon.com/21-Success-Sutras-Leaders-ebook/dp/B00AK98ELI




Thanks for reading!

Kindly share your thoughts and comments below, I’m sure someone out there will find your story useful.



Copyright©2016 MSR Leadership Consultants India. All Rights Reserved. Reproduction in whole or in part without permission is prohibited.

This is a nonprofit blog to share Professor M.S.Rao’s passion and vision to build one million students as global leaders by 2030. Please don't cut articles from my blog and redistribute by email or post to the web. The use of this material is free provided copyright is acknowledged and reference or link is made to the Blog http://professormsraovision2030.blogspot.in.  This material may not be sold, or published in any form, or used in the provision of business services to a third party without permission.


Friday 25 March 2016

“Dos and Don’ts for Indians to Pursue Overseas Education” ―Professor M.S.Rao










“It’s your place in the world; it’s your life. Go on and do all you can with it, and make it the life you want to live.” — Mae Jemison


Overseas education is very expensive for Indians. Many Indians dream of acquiring it but find several financial constraints to accomplish their dreams. The cost of overseas education includes university fees and living expenses. If they understand the right method of choosing their universities and bankers half of the battle is won.

Indian students are very keen to go to America to pursue higher education such as MS or MBA. The craze is high because America is a land of opportunities and especially for Indians. Indians are highly respected in America and other advanced countries like UK, Canada, Australia and Germany for their hard work and adaptability. Indian CEOs such as Sathya Nadella of Microsoft, Sundar Pichai of Google and Indra Nooyi of PepsiCo have become inspiration for many Indians in India. The quality of education in America is good and is creative, fun and employment-oriented.  However, there are many students who don’t have financial capacity to pursue higher education in America. This article addresses how to get loans for your overseas education and the dos and don’ts involved in it.  


A Blueprint to Your Overseas Education

There are several consultants that arrange loans for your overseas education. Do research to find out genuine overseas consultants. If you don’t have any idea, network with your friends from your educational institution and get inputs from your seniors who have already gone abroad for education. Find out the genuine universities and apply. Assess your financial capacity. Check the income tax returns of your parents. Get the banking transaction statement from your banker. Apply for loan based the on fees the college is asking. Find out the mode of payment and the installments to pay your fees.

Approach both private and public sector banks for loan. They will guide you how much they can fund and the margin money you must have. While going to private bankers, find out the rate of interest and hidden costs involved in it. Usually the marketing people from private bankers don’t reveal everything to you. Hence, you must clarify your requirements to avoid hassles later. Here are some dos and don’ts.  
  • Assume that you don’t get any part-time job during your study.  
  • Read the brochure carefully before applying for educational loan to avoid springing last-minute surprises by your banker.  
  • Compare the rate of interest from different banks. Find out the hidden costs involved. Some bankers present rosy picture by promising moon and finally you end up finally paying more interest. Hence, be careful with bankers. Have your queries clarified by the bank representative. If required, talk to his/her immediate manager to find out the facts. It helps you avoid burning fingers.
  • Ensure that you hit on the right bank with the right educational loan scheme to suit your needs.
  • Be careful with fluctuations in currency.
  • During the visa interview, express your sincere intentions to pursue quality education rather than to settle down there. You must convince them that you have the financial capacity to pay the fees and meet the living expenses during your stay for the course.


Conclusion

Govt of India encourages loans for education and housing provided you meet the requirements. Hence, do research; find out the details; shortlist the university as per your financial capacity; and ensure the funding from your banker at reasonable rate of interest to acquire overseas education.

Don’t assume that you get part-time job immediately. The rules in USA are changing and you must find out how many hours you can work part-time. The students who illegally work are sent back to the home country.  Hence, don’t involve in illegal activities that ruin your prospects to complete your course. Therefore, keep all risks in view and make your decisions wisely. If your parents cannot afford, don’t pressurize them. Empathize with them. Look for alternative means to accomplish your dreams to acquire overseas education.


"Dreams are extremely important. You can't do it unless you imagine it." — George Lucas



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Life is great!

Professor M.S.Rao, India
Founder of MSR Leadership Consultants India
Recipient of 10th International Prestigious Sardar Patel Award―2015
21 Success Sutras for Leaders: Top 10 Leadership Books of the Year (San Diego University) Amazon URL: http://www.amazon.com/21-Success-Sutras-Leaders-ebook/dp/B00AK98ELI




Thanks for reading!

Kindly share your thoughts and comments below, I’m sure someone out there will find your story useful.



Copyright©2016 MSR Leadership Consultants India. All Rights Reserved. Reproduction in whole or in part without permission is prohibited.

This is a nonprofit blog to share Professor M.S.Rao’s passion and vision to build one million students as global leaders by 2030. Please don't cut articles from my blog and redistribute by email or post to the web. The use of this material is free provided copyright is acknowledged and reference or link is made to the Blog http://professormsraovision2030.blogspot.in.  This material may not be sold, or published in any form, or used in the provision of business services to a third party without permission.

Tuesday 15 March 2016

“Don’t be a Prisoner of the Past; Be an Architect of Your Future!” ―Professor M.S.Rao



“Every time you are tempted to react in the same old way, ask yourself if you want to be a prisoner of the past or a pioneer of the future.” ― Deepak Chopra


There are some people who brood over their unpleasant past. They get into negative zone and get depressed finally. Instead, they must look at the future with optimism. Research shows that people waste 30 percent of their precious time by thinking about their unpleasant past that cannot be changed. Hence, people must explore solutions for their problems. Their future solely depends on their mindset and the way they look at the world. They must start a new course on a clean slate. They must always think of ‘what next’ rather than ‘what went wrong’. They must find out why and where things went wrong to learn lessons to become smarter and wiser. They must pioneer their future instead of becoming prisoners of their past.

When you observe all successful leaders including Abraham Lincoln, Mahatma Gandhi, and Nelson Mandela, they underwent lots of trials and tribulations. They did not look where they fell but they looked where they slipped and bounced back from their failures. 


Tools to Avoid Becoming a Prisoner of the Past

Steve Jobs once remarked, “Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma-which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.” Here are some tools and techniques to avoid becoming a prisoner of the past:
  • Let go off your unpleasant past. Focus on what you can do, not what you cannot do.
  • Embrace uncertainty. Don’t react, but act to the circumstances.
  • Learn when to hold and when to fold. There is a thin line separating the both. It requires immense judgment and intuition to decide when to hold and when to fold.
  • When things go wrong repeatedly, lie low for a while and wait an appropriate opportunity to make things fall into place.
  • Ensure that you reorganize your body and brain constantly with your new experiences.  
  • Try meditation or yoga or go for regular physical exercises to energize your mind and body.
  • Network with the right people.
  • Have an attitude of gratitude.
  • Look at the door that is opened.
  • Fight for pretty things, not petty things.
  • Look for possibilities, not impossibilities.
  • Learn to make choices and commitments. Take action keeping tomorrow in mind.

Remember, every dog its own day. God throws challenges and offers opportunities to everybody. In fact, challenges test your abilities and enlarge your capabilities. Challenges unlock the leader in you. Hence, be bold to face the challenges. At the same time, be prepared all the time to explore opportunities. 


Be an Architect of Your Future!

"The empires of the future are empires of the mind." — Winston Churchill

Life is a circus with ups and downs. Nobody can predict the future. However, you can pioneer your future with proper planning, preparation and execution. Be mentally prepared for distractions and surprises. Align yourself whenever you are thrown out of gear with patience and perseverance to accomplish your goals and ambitions.

Fate is something happens automatically whereas destiny is something you create. Precisely, destiny is in your hands.

To summarize, let bygones be bygones. Don’t think about the unpleasant past that cannot be changed, don’t worry too much about the future that cannot be predicted. Instead, think about today which is in your hands. To conclude, don’t be a prisoner of the past but be a pioneer of your future to make your life exciting. Life is great!


"The secret of change is to focus all of your energy, not on fighting the old, but on building the new." — Socrates




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Life is great!

Professor M.S.Rao, India
Founder of MSR Leadership Consultants India
Recipient of 10th International Prestigious Sardar Patel Award―2015
21 Success Sutras for Leaders: Top 10 Leadership Books of the Year (San Diego University) Amazon URL: http://www.amazon.com/21-Success-Sutras-Leaders-ebook/dp/B00AK98ELI




Thanks for reading!

Kindly share your thoughts and comments below, I’m sure someone out there will find your story useful.



Copyright©2016 MSR Leadership Consultants India. All Rights Reserved. Reproduction in whole or in part without permission is prohibited.

This is a nonprofit blog to share Professor M.S.Rao’s passion and vision to build one million students as global leaders by 2030. Please don't cut articles from my blog and redistribute by email or post to the web. The use of this material is free provided copyright is acknowledged and reference or link is made to the Blog http://professormsraovision2030.blogspot.in.  This material may not be sold, or published in any form, or used in the provision of business services to a third party without permission.