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 ?
Students registered with the Paras Education Foundation are eligible for the loans
How to register? What is a registration procedure?
Registration can be done online on our website. Please use the following link: www.isloan.org
What is the total amount of loan I can obtain as Loan?
In general, there is no maximum limit on the amount that can be availed under the Paras Education Loan. Loan can be availed for the full amount covering your tuition fees and living expenses after deducting any scholarships, financial aid, etc. (Terms and Conditions apply)
What is the interest rate on the loan?
Paras Education Loans are available at interest rate of 3.5% to 6.5% linked to Wall Street Journal Prime Lending Rate (PLR)
Is the interest fixed during the tenure of loan?
Interest rate is quarterly variable and floating – it is linked to Wall Street Journal PLR.
How the Interest rate will be charged?
Interest is simple interest on reducing balance and is charged only on the actual loan amount disbursed.
the loan available for any school / college / University of the approved countries?
Loans can be availed for Universities / Colleges registered with the Paras Education Foundation. Currently, we have more than 6000 Universities / Colleges registered with us.
However, while registering, it is important for you to provide with the names of Universities / Colleges you have applied to with your back up options.
In case a particular University / College is not registered with us, we can contact them and get them registered.
To whom will the funds be sent at the university? Would I need to be involved?
The loan is disbursed directly to your University / College as per the information / timelines provided by them. The student is not required to be involved in the disbursal.
What is the time period I have for repaying loan?
You can start repaying the loan once you graduate (6 months moratorium is allowed). You also have the option of making interest payments prior to your graduation. You have up to 10 to 15 years to repay the loan amount (Terms and Conditions apply).
Is there any flexibility in the repayment options? Do I have the option to defer my interest and principal?
YES! Repayment options are flexible and can be designed to suit your requirements, so that you are not unduly burdened.
Is there any prepayment penalty if loan is repaid before it is due?
Do I get any bonus or incentives, if I repay my loan well in advance?
Yes – as per the Terms and Conditions of the loan.
Do I Save anything if I am regular in my installments and do not make any default?
Yes – as per the Terms and Conditions of the loan.
What will be the EMI?
EMI depends on your loan amount, term and rate of interest. The minimum amount is US$ 150. However, there is nothing like EMI/ Monthly payment under Paras Loans. You can pay many times as you want in a month.
How long will it take for my loan application to be processed?
The loan application will be processed in approximately 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?
In general, there is no collateral, physical mortgage, security, margin money, etc required for the Paras Education Loan.
A valid and credit worthy co-signer may be required but the co-signer is also not required to provide any collateral, physical mortgage, security, margin money, etc. For obligations of co-signer, please refer to our counselor.
Can I have multiple Co-signors ?
Yes. You can have two or more Co-signers.
Do I get a loan for my living food and miscellaneous expenditure? & How?
Yes – this is sanctioned as per the general average student expenditure as certified by your university. However, this amount will be disbursed directly to your University which in turn will reimburse the required amount to you.
Can I pay the interest while studying? Will I earn enough to pay the interest amount at least?
Yes, we recommend that you pay your interest regularly so that it does not get compounded. Most universities allow you to do campus / part-time jobs which help you to pay off the interest regularly.
Some important tips to save money for repayment of interest and principle:
a. Try to save minimum $300 per month.
b. Share an apartment. (It’ll save you at least $10,000 each year)
c. Minimize eating out
d. Delay buying a car until you have paid off your loan.
e. Minimum cab rides and parking fees
f. Use the time in vacations to work the allowed 40 hours per week. These extra $$ earned during the off times can go a long way in reducing your paying off your loan quickly.
g. Try and live close to your workplace to minimize petrol/parking, if at all you have to buy a car.
h. You can get your loan consolidated or refinanced at a cheaper rate of interest whenever you get such chance.
i. Be very watchful of your expenses, spend every penny wisely. Always remember that you are in a debt. While purchasing something always ask yourself, “do I really need to buy this??"
j. Read the article of Jessica Elbert, a 29 year old who is almost done paying over $100,000 of student loan.
Do I get any incentive, if I post positive comments about Paras Foundation services ??
Yes. You do. Please refer our counselor.
Can I show this loan as a source of finance at the time of my visa?
Yes, however, this depends on the visa requirements of every country. Please refer to our Counselor.
If I pay my interest payment every month regularly or at least $100/- to $200/- every month, what benefit do I get ??
You develop your own credit history – which will help you when you want to apply for any loans in the future.
You may get some bonus for making all payments in a timely fashion.
You develop a habit of saving and becoming responsible in financial matters.
Can I get my earlier loan consolidated or refinanced at a cheaper rate of interest?
Yes, subject to terms and conditions. Please refer to our counselor.
Any benefit for regular interest payment?
Yes, if you make your EMI payments regularly for 24 months without any default, there is an option to get your co-signer relieved. Please refer to our counselor.
Any benefit for auto debit?
Yes, if you choose auto-debit, you may get 0.25% reduction in your interest rate
How can I make repayment??
When you are in US, you can make payment by your international credit/debit card or from your bank through ECS or through Flywire (www.flywire.com).
If your family wants to remit from India, they can remit from any bank under A4 form. Please refer to our counselors for more details.
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.
If my fees are due and not paid by me, can I get help from you and will you give me an extension and sanction letter ??
Yes, we can do this.
Do you have any Scholarship information available ??
Yes. Please ask for it and refer our counselor.
As per survey, it is said that only 25% of Scholarships are used globally. So, please take proper advantage of this.
Can you name few companies where your students with Paras loans are currently working ??
Quintiles, The Coca-Cola, Accenture, 3M, Intel, Medtronic, American Express, Marriot, Cisco, FedEx Express, Google, Apple, NetApp, SAS, Microsoft, IBM, Goldman Sachs, Deloitte, E&Y, etc.