Depending on the lender and the type of study, a student in India may be eligible for a loan up to a certain maximum amount. The highest loan amount for studies in India is normally 10 lakhs. The maximum loan amount for studies abroad is 30 lakhs.
However, subject to approval, some lenders provide larger loan amounts. For instance, HDFC Credila has a maximum loan amount of Rs. 1.5 crore available for both domestic and international study.
A student's credit score and the repayment arrangements they accept will also affect the amount of loan they are eligible for. When establishing the loan amount, lenders frequently take the student's income, costs, and capacity to repay into account.
Here is some factor that lendor determine the consider when determine maximum amount of the student loan that student can a get
I.the cost of education
The cost of education can vary widely depending on the level of education, the country or region you're in, the institution you attend, and the specific program or degree you pursue. Here's a general overview of the cost of education at different levels:
1. Primary and Secondary Education: In many countries, public primary and secondary education is funded by the government and is typically free or subsidized for residents. However, private schools may charge tuition fees, which can vary significantly based on factors such as location, reputation, and facilities.
2. Higher Education (Undergraduate): The cost of undergraduate education varies greatly depending on the country and the type of institution. In some countries like Germany and Norway, public universities offer tuition-free or low-cost education to both domestic and international students. However, in many other countries, particularly the United States, United Kingdom, and Australia, tuition fees for undergraduate programs at public or private universities can be substantial, ranging from several thousand dollars to tens of thousands of dollars per year.
3. Higher Education (Postgraduate): The cost of postgraduate education, such as master's or doctoral programs, can be higher than undergraduate education. The fees can vary based on factors such as the program, the institution's reputation, and the duration of the course. Scholarships, grants, and funding opportunities are more common at the postgraduate level, which can help offset the costs for some students.
4. Professional Education: Professional programs, such as medical, law, or business schools, tend to have higher tuition fees compared to other fields. The cost can be significant, especially for specialized programs and prestigious institutions.
II.student credit score
A student credit score refers to the creditworthiness or credit history of a student. Credit scores are numerical values that indicate an individual's creditworthiness and are used by lenders to assess the risk of lending money to a person. While there is no specific credit score exclusively for students, students can build their credit history and establish a credit score like any other individual.
Building a good credit score as a student can be beneficial for future financial endeavors, such as renting an apartment, applying for loans, or getting approved for credit cards with favorable terms. Here are a few ways students can start building their credit history and improve their credit score:
1. Open a credit card: Consider applying for a student credit card or a secured credit card, which requires a deposit as collateral. Use the credit card responsibly, making small purchases and paying off the balance in full and on time each month.
2. Pay bills on time: Pay all bills, such as rent, utilities, and student loans, on time. Consistently meeting payment deadlines helps establish a positive payment history, which is a crucial factor in determining creditworthiness.
3. Keep credit utilization low: Try to keep credit card balances low in relation to the credit limit. Aim to use no more than 30% of your available credit, as high credit utilization can negatively impact your credit score.
4. Avoid excessive credit applications: Each time you apply for credit, it generates a hard inquiry on your credit report, which can temporarily lower your credit score. Be selective when applying for credit and avoid submitting multiple applications within a short period.
5. Become an authorized user: If a family member or close friend has a credit card with a good payment history, they may be willing to add you as an authorized user. This can help
III.student income
Student income refers to the money earned by individuals who are enrolled in educational institutions, such as high schools, colleges, or universities. This income can come from various sources, including part-time jobs, internships, scholarships, grants, and allowances from parents or guardians.
Here are some common sources of student income:
1. Part-time jobs: Many students work part-time while studying to cover their expenses. These jobs can include working in retail stores, restaurants, tutoring, babysitting, or freelancing.
2. Internships: Some students participate in internships related to their field of study. While some internships may be unpaid, others offer stipends or a salary.
3. Scholarships and grants: Students may receive financial aid in the form of scholarships or grants based on academic performance, athletic achievements, or specific criteria set by the institution or external organizations. These funds can help cover tuition fees, books, or living expenses.
4. Parental or guardian support: Some students receive financial assistance from their parents or guardians to cover their education and living expenses. This support can vary depending on individual circumstances.
5. Research assistantships: Students involved in research projects at their educational institutions may receive compensation for their work as research assistants.
6. Allowances: Some students receive regular allowances from their parents or guardians to cover their day-to-day expenses while studying.
It's important to note that student income can vary widely depending on factors such as the student's location, level of education, field of study, job availability, and individual circumstances.
IV.Student expenses
Student expenses can vary depending on factors such as location, lifestyle choices, and individual circumstances. However, here are some common expenses that students typically incur:
1. Tuition fees: The cost of tuition varies widely depending on the country, institution, and program of study. It is usually one of the largest expenses for students.
2. Accommodation: Renting a room or an apartment is a significant expense for students. The cost will depend on the location, type of accommodation, and whether it is on or off-campus.
3. Food: Students need to budget for groceries or meal plans if available. Cooking meals at home is generally more cost-effective than eating out regularly.
4. Transportation: Expenses related to commuting between home and campus can include public transportation fares, fuel costs (if using a car), parking fees, or bicycle maintenance.
5. Books and study materials: Textbooks, online resources, and other study materials can add up. However, there are options to save money, such as buying used books, renting, or utilizing the library resources.
6. Utilities: If living off-campus, students may need to pay for utilities like electricity, water, internet, and cable TV. These costs can be shared if living with roommates.
7. Health insurance: Depending on the country and individual circumstances, students may need to pay for health insurance coverage or have it included in their tuition fees.
8. Personal expenses: These include personal care items, clothing, entertainment, and leisure activities. It's important to budget for discretionary spending and prioritize essential needs.
9. Study-related expenses: Students may need to cover costs associated with laboratory fees, field trips, special equipment or software for certain courses, or professional memberships for specific programs.
10. Miscellaneous expenses: Unexpected costs can arise, such as medical expenses, vehicle repairs, or emergency travel. It's wise to set aside some money for unforeseen circumstances.
It's essential for students to create a budget to manage their expenses effectively and find ways to save money, such as applying for scholarships, seeking part-time employment, or exploring student discounts. Additionally, some universities offer financial aid or counseling services to assist students in managing their finances.
V.The student repayment ability
The student repayment ability refers to a student's capacity to repay their student loans after completing their education. It depends on various factors, including the student's income, employment prospects, financial obligations, and the amount of debt they have accumulated.
Here are some key factors that can influence a student's repayment ability:
1. Income: The level of income a student earns after graduation plays a crucial role in determining their repayment ability. Higher income levels generally provide more financial flexibility to meet monthly loan obligations.
2. Employment prospects: The job market and employment prospects in the student's field of study can impact their ability to secure a well-paying job. Strong demand and higher salaries in their chosen profession can enhance their repayment ability.
3. Loan terms and interest rates: The terms of the student loans, including the interest rates, repayment period, and any repayment plans or forgiveness options, can affect a student's ability to repay. Higher interest rates or shorter repayment periods may result in higher monthly payments, making it more challenging for students with lower incomes to meet their obligations.
4. Financial obligations: Other financial obligations, such as rent, utilities, and other debts, can affect a student's ability to allocate funds towards student loan repayment. Higher living costs or significant financial responsibilities may impact their repayment ability.
5. Debt load: The total amount of student loan debt a student has accumulated will also influence their repayment ability. Higher debt burdens can lead to larger monthly payments, making it more challenging to manage within limited income.
6. Financial management skills: Students who have good financial management skills, such as budgeting, saving, and controlling expenses, are more likely to have better repayment ability. These skills can help them allocate resources efficiently and make timely loan payments.
It is important for students to carefully consider these factors and develop a realistic plan for managing their student loan repayment. They should also explore options such as income-driven repayment plans, loan forgiveness programs, or refinancing to make their loan payments more manageable based on their unique circumstances.