This is with reference to your registration with the foundation. Please find below the FAQ’s on PARAS Soft Term Study Abroad Loans/Finance:
Who is eligible for PARAS study abroad loans ?
Only Registered student member of foundation is eligible.
How to register? What is a registration procedure?
Please Log on the http://www.isloan.org/reg2.htm (or ask our counselors for details.)
Can PARAS provide any reference?
Top ranked B-schools of the world have acknowledged and published PARAS LOAN on their website. e.g.:
- IMD, Switzerland
- Rotterdam School of Management (RSM) –Netherlands
- IESE - Spain
- Universiteit Nyenrode, Netherlands – (website: http://www.nyenrode.nl)
- ESADE, Spain – (website:http://www.esade.edu/programs/mba/full/index.php?NDA%3D)
- QISAN (Quality International Study Abroad Network) - UK (Website: http://www.qisan.com/scholarships.htm)
- Pacific International Hotel Management School –New Zealand (Website:http://www.pihms.ac.nz/course/tpef.html)
- REIMS Management School France- (http://www.reims-ms.fr/?site=&lang=en)
Many more schools like, International University of Japan (IUJ), Instituto De Empresa(IE), Spain, American Intercontinental University etc. are in process to publish the same on their website. All these would serve as a reference for you in this matter.
What is the total amount of loan I can obtain as Loan?
You can obtain a loan for the entire amount of your university fees payable by you OR the amount finally payable by you after deducting any scholarships, financial aid etc. received. Generally there is no cap. (* Conditions apply)
What is the interest rate on the loan?
Soft Term Loans for studies abroad is available @ 4% to 7% per annum linked to Wall Street PLR.
Is the interest fixed during the tenure of loan?
It is quarterly variable and floating as per Wall Street PLR. General trend of interest rate going down works in favour of the student.
How the Interest rate will be charged?
It will be simple interest on reducing balance and only on the amount disbursed.
Is the loan available for any school / college / University of the approved countries?
NO! Student needs to provide name of the university /school (with website) and name of the country. (Names of the university where applied as back up option must also be mentioned in the loan application form.)
To whom will the funds be sent at the university? Would I need to be involved?
The loan amount will be directly sent to the university financial/Bursar’s authorities. NO. You will not have to be involved in any way as regards disbursement of the money.
What is the time period I have for repaying loan?
You can start repaying the loan once you graduate (6 months moratorium allowed) or even while you are studying. You have up to 10 to 15 years to repay the loan amount.(Different Loan programs offer various repayment periods).
Is there any flexibility in the repayment options? Do I have the option to defer my interest and principal?
YES! There is a great amount of flexibility as per various repayment options, which are very flexible and designed to suit your needs, so that you are not unduly burdened. (Ask our counselors for details.)
Is there any prepayment penalty if loan is repaid before it is due?
NO. There is no such penalty levied.
Do I get any bonus or incentives, if I repay my loan well in advance?
Do I Save anything if I am regular in my installments and do not make any default?
What will be the EMI?
Minimum you have to Start with $150USD and there is no cap on maximum.
How long will it take for my loan application to be processed?
The loan application will be processed in approx. 4 weeks if the application is accurate and CO-applicant's documents and credit history is satisfactory.
Is there any collateral involved? Or any Physical Mortgage/ security/ Margin Money required? What is the financial involvement of my guarantor/co-signor from abroad? Does he have to pay any sum?
NO. But this is on case to case basis depending on student’s academic profile, GMAT/GRE/SAT score, Resume, Financial & family background, and name & ranking of your university, country of your study etc. For this reason only student needs to register to enable this foundation to do pre screening and then decide on conditional & successful approval or otherwise of a particular loan application. (A valid & creditworthy guarantor/co- signor may be required.) An adequate income & credit history of a person to guarantee your loan helps in expeditious and easier decision. Your guarantor/co-signor has not to pay a penny nor has to give any margin money or physical mortgage/security etc. (Refer our counselor)
In what installment the loan is disbursed? In what currency?
USD or CAD or UK ₤. A successful loan application is sent to your university for certification for payment schedule as desired by your university. On receipt of certification, loan is disbursed as specified and requested by your university.
Do I get a loan for my living food and miscellaneous expenditure? & How?
Yes, this again is sanctioned as per the general average expenditure required by a student to be certified by your university. However this will be paid to your university only who in turn will reimburse the required amount towards these expenditure to you.
Does PARAS offer loan for any other purpose?
No.Our loans are for education and especially for study abroad only. (No Home loans/Car loans or personal loans.)
Can I pay the interest while studying? Will I earn enough to pay the interest amount at least?
Yes, Ideally you should generally pay your interest regularly. (so that it does not get compounded). Yes, most of the universities and countries allow you to do on campus jobs or part time job, internship or work/study program which allow you to earn enough to pay off the interest regularly.
Can I show this loan as a source of finance at the time of my visa?
Yes. This depends on the rules and regulation of Visa requirement of each country. (Ask our counselors for details.)
Are there any further fees in INR to be paid to ‘PARAS’ here in India? & These fees are towards what?
Yes. There is a onetime fee per each loan application. This is towards processing, recommending pre & post follow up with PARAS’s lending partner overseas and towards finally getting the loan cheque made, disbursed and delivered to the financial Aid office of your university. All the incidental & necessary counseling and help required to this end are included in this fee. (Please Ask our counselors for the current/prevailing processing fees for this.)
If I meet your requirements is the loan guaranteed?
Yes. It is guaranteed. These are loans (and not scholarship) so there is no quota system. Any number of eligible students can avail PARAS STUDY ABROAD loans.
Any benefit for regular interest payment?
If you make your interest payment regularly & consequently for 24 months without any default, there is a option that your co-signor may be relieved. Please discuss with our counselors.
Any benefit for auto debit?
If you opt for auto debit , you may get .25% in interest rate deduction.
How disbursement of loan amount is done
Disbursement of the funds will always be done as per the amount & date certified by your University & not as per your instructions. Tpef will not be responsible if more or less amount is disbursed per semester, because we have to follow your University’s instructions only for disbursement. Please note & understand this very Carefully. If still in confusion, Please discuss with our counselor