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Friday, October 23, 2009
Compare our personal loans with other banks(alliance leicester)
This table is based on a new customer taking out a personal loan of £7,500 (without optional insurance) for a term of 60 months.
Bank APR typical* Monthly cost Total payable Saving
A&L 7.9% £150.74 £9,044.40
Post Office 9.9% £157.43 £9,445.80 £401.40
Marks & Spencer Money 9.9% £159.92 £9,595.20 £550.80
Lloyds TSB 11.3% £162.31 £9,738.60 £694.20
NatWest 12.9% £167.60 £10,056.00 £1,011.60
Bank APR typical* Monthly cost Total payable Saving
A&L 7.9% £150.74 £9,044.40
Post Office 9.9% £157.43 £9,445.80 £401.40
Marks & Spencer Money 9.9% £159.92 £9,595.20 £550.80
Lloyds TSB 11.3% £162.31 £9,738.60 £694.20
NatWest 12.9% £167.60 £10,056.00 £1,011.60
U.S. Bank Bar Review Education Loan
Designed for graduates of ABA (American Bar Association) approved law schools, this loan helps you support yourself while you are studying for and taking the Bar Exam.
Loan Details:
* Must be a graduate of an ABA approved law school.
* Reserve fees of 4% or 9% of the loan amount will be assessed depending upon credit history.5
* Repayment term up to 15 years.5
* Affordable repayment options, no payment required until six months after graduation.
Loan Limits:
* Minimum loan amount is $1,000.
* Maximum loan amount is $12,000.
* Aggregate Borrowing Limits:
o $50,000 in U.S. Bank Private Student Loans
o $120,000 from all student loan programs (which includes federal)
Interest Rate:
* Interest rate of Prime + 0%, variable over the life of the loan.2
Cosigners:
* With the help of a qualified cosigner, you may more easily qualify for a loan.
* Cosigner release options are available.
Repayment Discount:
* Use our convenient AutoPay option and receive a .20% interest rate reduction
Loan Details:
* Must be a graduate of an ABA approved law school.
* Reserve fees of 4% or 9% of the loan amount will be assessed depending upon credit history.5
* Repayment term up to 15 years.5
* Affordable repayment options, no payment required until six months after graduation.
Loan Limits:
* Minimum loan amount is $1,000.
* Maximum loan amount is $12,000.
* Aggregate Borrowing Limits:
o $50,000 in U.S. Bank Private Student Loans
o $120,000 from all student loan programs (which includes federal)
Interest Rate:
* Interest rate of Prime + 0%, variable over the life of the loan.2
Cosigners:
* With the help of a qualified cosigner, you may more easily qualify for a loan.
* Cosigner release options are available.
Repayment Discount:
* Use our convenient AutoPay option and receive a .20% interest rate reduction
Private Student Loans from US bank
Private loans are often used to supplement federal student loans when they are not sufficient to cover the full cost of education. Students should always explore the advantages of grants, scholarships and federal student loans before applying for a private loan.
U.S. Bank offers the following school certified private student loans. Not sure if your school participates? Check with your college financial aid office or call 800-242-1200.
U.S. Bank No Fee Education Loan
U.S. Bank Bar Review Education Loan
U.S. Bank No Fee Education Loan
A non-federal loan designed for students enrolled in a four-year undergraduate or any graduate program at an eligible college or university.
Loan Details:
* These loans are credit-based. You don't have to demonstrate financial need.
* Must be enrolled part-time or more and making satisfactory academic progress in a four-year undergraduate or any graduate program at an eligible college or university.
* No application, administration or reserve fees.
* Automatic deferment of payments while in school and for six months after graduation or less than half-time enrollment. Or, choose to make interest payments while in school.
* Repayment term up to 15 years.1
* Affordable repayment options.
Loan Limits:
* Borrow up to the cost of attendance, less financial aid received. This amount will be the lesser of what the borrower requests, program limits, or school certified amount.
* Applicants approved at the highest interest rate are limited to an annual borrowing amount of up to $20,000.
* Minimum loan amount is $1,000.
* Aggregate Borrowing Limits:
o $50,000 in U.S. Bank Private Student Loans
o $120,000 from all student loan programs (which includes federal)
Interest Rates:
* Interest rates are dependent upon credit history. All rates are variable over the life of the loan.2
o Prime + 1.95%
o Prime + 4.95%
o Prime + 8.95%3
Cosigners:
* With the help of a qualified cosigner, you may more easily qualify for a loan and receive a better rate.
* Cosigner release options are available.
Repayment Discount:
* Use our convenient AutoPay option and receive a .50% interest rate reduction
U.S. Bank offers the following school certified private student loans. Not sure if your school participates? Check with your college financial aid office or call 800-242-1200.
U.S. Bank No Fee Education Loan
U.S. Bank Bar Review Education Loan
U.S. Bank No Fee Education Loan
A non-federal loan designed for students enrolled in a four-year undergraduate or any graduate program at an eligible college or university.
Loan Details:
* These loans are credit-based. You don't have to demonstrate financial need.
* Must be enrolled part-time or more and making satisfactory academic progress in a four-year undergraduate or any graduate program at an eligible college or university.
* No application, administration or reserve fees.
* Automatic deferment of payments while in school and for six months after graduation or less than half-time enrollment. Or, choose to make interest payments while in school.
* Repayment term up to 15 years.1
* Affordable repayment options.
Loan Limits:
* Borrow up to the cost of attendance, less financial aid received. This amount will be the lesser of what the borrower requests, program limits, or school certified amount.
* Applicants approved at the highest interest rate are limited to an annual borrowing amount of up to $20,000.
* Minimum loan amount is $1,000.
* Aggregate Borrowing Limits:
o $50,000 in U.S. Bank Private Student Loans
o $120,000 from all student loan programs (which includes federal)
Interest Rates:
* Interest rates are dependent upon credit history. All rates are variable over the life of the loan.2
o Prime + 1.95%
o Prime + 4.95%
o Prime + 8.95%3
Cosigners:
* With the help of a qualified cosigner, you may more easily qualify for a loan and receive a better rate.
* Cosigner release options are available.
Repayment Discount:
* Use our convenient AutoPay option and receive a .50% interest rate reduction
Higher Education Financing - Approaches to Student Loans from world bank
How do you raise access to higher education for everyone in Romania, including those from disadvantaged backgrounds, especially given Romania’s aspirations to accelerate growth and close the income gap with its EU neighbors?
This was the starting point that generated a series of discussions and materialized in two recent workshops about student loans as a way of addressing this important challenge. The workshops were jointly organized by the Ministry of Education, Research and Youth (MERY) and the World Bank. The World Bank is a development bank; and it is also a knowledge bank. It is in this latter role that the Bank contributed by sharing its international expertise and experience, and provide the requested technical assistance to the MERY, a counterpart having a clear vision of what needs to be done and seeking guidance on how to do it.
There are several reasons why broadening the access to higher education is becoming increasingly important in Romania. Romania wants to make the best use of its human resources to sustain rapid economic growth, and also ensure that everyone can contribute to and benefit from that growth. The number of active population who graduated from higher education has been increasing, but a significant gap between rural and urban areas persists –3.2% and 21.4%, respectively. Closing the gap in the number of graduates from higher education between those active in rural and urban areas will be important to sustain rapid and inclusive economic growth.
Closing this gap will involve a number of different instruments. The World Bank experience from other countries suggests that introducing a student loan and grant scheme can help in different ways: besides providing the means for poorer students to cover the cost of tuition, it also provides for opportunities to re-think how the state can finance higher education and how the cost of providing high quality education to as many students as possible is shared between the state and the students attending higher education institutions.
A World Bank team of experts with a large international experience in the area of student financial assistance set the stage in February 2008 by introducing representatives of the MERY, of the academia, students and other stakeholders to key principles and objectives of student loans, key aspects related to student loan design, and the implementation challenges faced in other Central and Eastern European countries (see Higher Education Finance & Student Loans Scheme Options for Romania - pdf file - presented by D. Bruce Johnstonewe and Pamela Marcucci on February 28, 2008). Specialists in Romania took a comprehensive look at the range of policies and design features for student financial support that could be considered. International experience indicates that, to be successful, student loan programs need to have from the start clear consensus on objectives and key design features.
In April 2008, the second workshop focused on the practical application of international experience with students loan programs to the Romania context, leading to a very interesting review of potential student loan objectives in Romania, and a lively debate on key aspects in student loan design that would have to be taken into account. (see Higher Education Finance & Student Loans Scheme Options for Romania - pdf file- presented on April 18, 2008). A group of 35 participants were actively involved in providing answers to essential questions on objectives of a student loan scheme in Romania, beneficiaries, costs, subsidization, repayment obligations. 85% of respondents to a questionnaire indicated that the objective of a student loan in Romania should be to support specific Government policies, such as getting more graduates from rural areas, getting more graduates in specific fields. (see the Questionnaire Results - pdf file) The World Bank will further support the MERY to prepare a white paper on student loans to be launched in a third broader event scheduled for end of May, 2008.
This was the starting point that generated a series of discussions and materialized in two recent workshops about student loans as a way of addressing this important challenge. The workshops were jointly organized by the Ministry of Education, Research and Youth (MERY) and the World Bank. The World Bank is a development bank; and it is also a knowledge bank. It is in this latter role that the Bank contributed by sharing its international expertise and experience, and provide the requested technical assistance to the MERY, a counterpart having a clear vision of what needs to be done and seeking guidance on how to do it.
There are several reasons why broadening the access to higher education is becoming increasingly important in Romania. Romania wants to make the best use of its human resources to sustain rapid economic growth, and also ensure that everyone can contribute to and benefit from that growth. The number of active population who graduated from higher education has been increasing, but a significant gap between rural and urban areas persists –3.2% and 21.4%, respectively. Closing the gap in the number of graduates from higher education between those active in rural and urban areas will be important to sustain rapid and inclusive economic growth.
Closing this gap will involve a number of different instruments. The World Bank experience from other countries suggests that introducing a student loan and grant scheme can help in different ways: besides providing the means for poorer students to cover the cost of tuition, it also provides for opportunities to re-think how the state can finance higher education and how the cost of providing high quality education to as many students as possible is shared between the state and the students attending higher education institutions.
A World Bank team of experts with a large international experience in the area of student financial assistance set the stage in February 2008 by introducing representatives of the MERY, of the academia, students and other stakeholders to key principles and objectives of student loans, key aspects related to student loan design, and the implementation challenges faced in other Central and Eastern European countries (see Higher Education Finance & Student Loans Scheme Options for Romania - pdf file - presented by D. Bruce Johnstonewe and Pamela Marcucci on February 28, 2008). Specialists in Romania took a comprehensive look at the range of policies and design features for student financial support that could be considered. International experience indicates that, to be successful, student loan programs need to have from the start clear consensus on objectives and key design features.
In April 2008, the second workshop focused on the practical application of international experience with students loan programs to the Romania context, leading to a very interesting review of potential student loan objectives in Romania, and a lively debate on key aspects in student loan design that would have to be taken into account. (see Higher Education Finance & Student Loans Scheme Options for Romania - pdf file- presented on April 18, 2008). A group of 35 participants were actively involved in providing answers to essential questions on objectives of a student loan scheme in Romania, beneficiaries, costs, subsidization, repayment obligations. 85% of respondents to a questionnaire indicated that the objective of a student loan in Romania should be to support specific Government policies, such as getting more graduates from rural areas, getting more graduates in specific fields. (see the Questionnaire Results - pdf file) The World Bank will further support the MERY to prepare a white paper on student loans to be launched in a third broader event scheduled for end of May, 2008.
Obama Criticizes Banks Over Student Loan Subsidies
TROY, N.Y. — President Obama sharply criticized the nation’s largest banks for trying to stop legislation that would overhaul federal student loan programs.
Mr. Obama, speaking at a community college, said that American banks had received bailout money from the federal government, and yet were still fighting against a proposal that would eliminate an unwarranted subsidy which the banks receive for providing student loans.
“Ending this unwarranted subsidy for big banks is a no-brainer for folks everywhere,” Mr. Obama said, before lashing out against his favorite target of late. “Everywhere except Washington, that is. In fact, we’re already seeing the special interests rallying to save this giveaway.”
Mr. Obama’s trip to Troy, in advance of his appearance this week in Manhattan for the United Nations General Assembly, was fraught with political tension that had nothing to do with the education reforms that were originally supposed to be the reason behind the trip. Instead, political watchers in New York and the media were fixated on the interaction between Mr. Obama and New York Gov. David Paterson, who the White House famously urged recently to abandon his plans to pursue election in 2010 lest he be a drag on the Democratic ticket.
Earlier, Robert Gibbs, the White House press secretary, told reporters on Air Force One, “Look I think everybody understands the tough job that every elected official has right now in addressing many of the problems that we have. I think people are aware of the tough situation that the governor of New York is in. I wouldn’t add a lot to what you’ve read, except this is a decision that he’s going to make. The president understands the tough job that everyone has and the pressure that they are under.”
Mr. Paterson met Mr. Obama’s plane at the airport Monday morning, and the two men exchanged brief words and an even briefer hug before traveling — separately — to Hudson Valley Community College for Mr. Obama’s speech.
Interestingly, Mr. Paterson’s likely Democratic rival for the governor’s job, state Attorney General Andrew Cuomo, was also on hand for Mr. Obama’s education speech. The two rivals sat in the first row, separated by two state politicians, as they listened to Mr. Obama’s speech.
Mr. Obama gave both of them a quick shout-out at the beginning, before returning to his prepared remarks.
He said that the country is emerging from its economic crisis, adding that “our great challenge will be to ensure that we do not just drift into the future.”
Mr. Obama, speaking at a community college, said that American banks had received bailout money from the federal government, and yet were still fighting against a proposal that would eliminate an unwarranted subsidy which the banks receive for providing student loans.
“Ending this unwarranted subsidy for big banks is a no-brainer for folks everywhere,” Mr. Obama said, before lashing out against his favorite target of late. “Everywhere except Washington, that is. In fact, we’re already seeing the special interests rallying to save this giveaway.”
Mr. Obama’s trip to Troy, in advance of his appearance this week in Manhattan for the United Nations General Assembly, was fraught with political tension that had nothing to do with the education reforms that were originally supposed to be the reason behind the trip. Instead, political watchers in New York and the media were fixated on the interaction between Mr. Obama and New York Gov. David Paterson, who the White House famously urged recently to abandon his plans to pursue election in 2010 lest he be a drag on the Democratic ticket.
Earlier, Robert Gibbs, the White House press secretary, told reporters on Air Force One, “Look I think everybody understands the tough job that every elected official has right now in addressing many of the problems that we have. I think people are aware of the tough situation that the governor of New York is in. I wouldn’t add a lot to what you’ve read, except this is a decision that he’s going to make. The president understands the tough job that everyone has and the pressure that they are under.”
Mr. Paterson met Mr. Obama’s plane at the airport Monday morning, and the two men exchanged brief words and an even briefer hug before traveling — separately — to Hudson Valley Community College for Mr. Obama’s speech.
Interestingly, Mr. Paterson’s likely Democratic rival for the governor’s job, state Attorney General Andrew Cuomo, was also on hand for Mr. Obama’s education speech. The two rivals sat in the first row, separated by two state politicians, as they listened to Mr. Obama’s speech.
Mr. Obama gave both of them a quick shout-out at the beginning, before returning to his prepared remarks.
He said that the country is emerging from its economic crisis, adding that “our great challenge will be to ensure that we do not just drift into the future.”
ICICI Bank Home Loan
Introduction
ICICI Bank has designed home loan plans to suit your needs to lay foundation for your dream home. Bank has special offers such as attractive loan interest rates, home loan amounts to suit your needs, home loan repayment tenure up to 25 years and others. The bank even sanctions the approval without having selected a property. Further it gives free personal accident insurance cover and insurance option for home loan at very attractive premium.
Highlights
Interest Rate 12.75%
Loan Amount Min. - Rs 200000
Max. - Rs 10000000
Tenure Min. - 5 Yrs.
Max. - 25 Yrs.
Time to Process Loan 7 days
Interest Rates
Tenure Interest Type Interest Rate Offer
15 - 20 Yrs. Floating 11.25 %
10 - 15 Yrs. Floating 11.25 %
5 - 10 Yrs. Floating 11.25 %
1 - 5 Yrs. Floating 11.25 %
15 - 20 Yrs. Fixed 13.75 %
10 - 15 Yrs. Fixed 13.75 %
5 - 10 Yrs. Fixed 13.75 %
1 - 5 Yrs. Fixed 13.75 %
ICICI Bank has designed home loan plans to suit your needs to lay foundation for your dream home. Bank has special offers such as attractive loan interest rates, home loan amounts to suit your needs, home loan repayment tenure up to 25 years and others. The bank even sanctions the approval without having selected a property. Further it gives free personal accident insurance cover and insurance option for home loan at very attractive premium.
Highlights
Interest Rate 12.75%
Loan Amount Min. - Rs 200000
Max. - Rs 10000000
Tenure Min. - 5 Yrs.
Max. - 25 Yrs.
Time to Process Loan 7 days
Interest Rates
Tenure Interest Type Interest Rate Offer
15 - 20 Yrs. Floating 11.25 %
10 - 15 Yrs. Floating 11.25 %
5 - 10 Yrs. Floating 11.25 %
1 - 5 Yrs. Floating 11.25 %
15 - 20 Yrs. Fixed 13.75 %
10 - 15 Yrs. Fixed 13.75 %
5 - 10 Yrs. Fixed 13.75 %
1 - 5 Yrs. Fixed 13.75 %
HSBC Bank Education Loan
Introduction
HSBC bank helps you to fulfill your dream to get good admission in good college/ professional institute in India or abroad. Bank gives education loan for studies in India and abroad. Bank has flexible tenure, comprehensive coverage, low interest rate, etc. Bank also have special discount for HSBC customers.
Highlights
Study Abroad Study India
Course Graduation Graduation
Loan Type Term Loan Term Loan
Loan Purpose Educational Loan with expenses for boarding and lodging. Educational Loan with expenses for boarding and lodging.
Loan Amount Min. - Rs 50000
Max. - Rs 2500000 Min. - Rs 50000
Max. - Rs 2500000
Interest Rate 12 % 12 %
HSBC bank helps you to fulfill your dream to get good admission in good college/ professional institute in India or abroad. Bank gives education loan for studies in India and abroad. Bank has flexible tenure, comprehensive coverage, low interest rate, etc. Bank also have special discount for HSBC customers.
Highlights
Study Abroad Study India
Course Graduation Graduation
Loan Type Term Loan Term Loan
Loan Purpose Educational Loan with expenses for boarding and lodging. Educational Loan with expenses for boarding and lodging.
Loan Amount Min. - Rs 50000
Max. - Rs 2500000 Min. - Rs 50000
Max. - Rs 2500000
Interest Rate 12 % 12 %
HBL CAR LOAN
HBL CarLoan helps you get your preferred car through a simple and hassle-free process, backed by superior service and support. Now you can drive a car you always wanted.
For details, please call 111-111-425.
Bullet Features
• Choice of used, new local/imported and reconditioned imported car.
• Repayment options ranging upto 7 years.
• Upto 85% of financing for the car of your choice.
• Insurance at all times for complete peace of mind and security.
• Round the clock support available through HBL PhoneBanking; you can place your requests and queries, track the status of your repayment/loan account and avail other value-added services through HBL PhoneBanking.
Bullet Eligibility Criteria
Salaried Individuals Self-Employed Business persons/ Professionals
Citizenship Pakistani Pakistani
Age 22-60 years 22-65 years
Minimum monthly income Rs. 20,000 Rs. 25,000
Bullet Documentation
Salaried Individuals
• Copy of CNIC
• 2 recent passport size photographs
• Latest original salary slip and personal bank statement for last 3 months
Self-Employed Business persons/Professionals
• Copy of CNIC
• 2 recent passport size photographs
• Bank statement for last 6 months and bank letter confirming details of account
• Proof of business
For details, please call 111-111-425.
Bullet Features
• Choice of used, new local/imported and reconditioned imported car.
• Repayment options ranging upto 7 years.
• Upto 85% of financing for the car of your choice.
• Insurance at all times for complete peace of mind and security.
• Round the clock support available through HBL PhoneBanking; you can place your requests and queries, track the status of your repayment/loan account and avail other value-added services through HBL PhoneBanking.
Bullet Eligibility Criteria
Salaried Individuals Self-Employed Business persons/ Professionals
Citizenship Pakistani Pakistani
Age 22-60 years 22-65 years
Minimum monthly income Rs. 20,000 Rs. 25,000
Bullet Documentation
Salaried Individuals
• Copy of CNIC
• 2 recent passport size photographs
• Latest original salary slip and personal bank statement for last 3 months
Self-Employed Business persons/Professionals
• Copy of CNIC
• 2 recent passport size photographs
• Bank statement for last 6 months and bank letter confirming details of account
• Proof of business
Bank Loans - What Are The Types?
Back when our grandparents were children, life was much simpler. Those who needed money because their car broke down, simply walked into their local bank and asked for bank loans. Today, even the once simple world of bank loans is complicated!
From investment bank loans to personal bank loans, the world of borrowing money is becoming more and more complicated. If you are considering borrowing money from your bank, there are a few things you should know before asking for a loan. These tips will make it certain that you will be able to choose from the best bank loans possible for your situation.
Types of Bank Loans
First, make sure you know what the different types of bank loans are. For example, do you know the difference between personal bank loans and other types? There is a difference!
Personal Bank Loans
Personal bank loans are loans offered to an individual, rather than a group or business. Even personal bank loans have different categories, such as secured and unsecured debt!
Secured Loans
A secured loan is the most common type of personal loan you will be offered. This is a loan that has some sort of possession put up as security for the loan. In other words, if you do not pay back your loan according to the loan agreement, the bank has a right to repossess whatever you put up for the loan. Borrowing against the equity in your home is an example of a secured loan. Your home because the security for the loan amount, and if you do not pay back your loan on time, the bank could repossess your home.
Unsecured Loans
It is far less common for a bank to offer an individual an unsecured loan, but it does happen. An unsecured loan is like a credit card. There is nothing placed as security for the loan. You are simply giving your word to the bank that you will pay the loan back in the terms agreed to. If you do not pay it back, the bank receives nothing. The interest rate of unsecured loans is usually quite a bit higher than secured loans, so the bank ensures they get their money early in case you fail to pay back the loan.
Investment Bank Loan
An investment bank loan is a loan that you take out to make a major purchase, such as your mortgage. These bank loans require credit checks that are somewhat rigorous, because the loans are usually large amounts. Also, they are considered secured loans because if you do not pay them back, the offshore bank accounts can sell off your investment to earn the money you owe them.
From investment bank loans to personal bank loans, the world of borrowing money is becoming more and more complicated. If you are considering borrowing money from your bank, there are a few things you should know before asking for a loan. These tips will make it certain that you will be able to choose from the best bank loans possible for your situation.
Types of Bank Loans
First, make sure you know what the different types of bank loans are. For example, do you know the difference between personal bank loans and other types? There is a difference!
Personal Bank Loans
Personal bank loans are loans offered to an individual, rather than a group or business. Even personal bank loans have different categories, such as secured and unsecured debt!
Secured Loans
A secured loan is the most common type of personal loan you will be offered. This is a loan that has some sort of possession put up as security for the loan. In other words, if you do not pay back your loan according to the loan agreement, the bank has a right to repossess whatever you put up for the loan. Borrowing against the equity in your home is an example of a secured loan. Your home because the security for the loan amount, and if you do not pay back your loan on time, the bank could repossess your home.
Unsecured Loans
It is far less common for a bank to offer an individual an unsecured loan, but it does happen. An unsecured loan is like a credit card. There is nothing placed as security for the loan. You are simply giving your word to the bank that you will pay the loan back in the terms agreed to. If you do not pay it back, the bank receives nothing. The interest rate of unsecured loans is usually quite a bit higher than secured loans, so the bank ensures they get their money early in case you fail to pay back the loan.
Investment Bank Loan
An investment bank loan is a loan that you take out to make a major purchase, such as your mortgage. These bank loans require credit checks that are somewhat rigorous, because the loans are usually large amounts. Also, they are considered secured loans because if you do not pay them back, the offshore bank accounts can sell off your investment to earn the money you owe them.
Home loan rates of different banks
In order to lend you money, banks and housing finance companies borrow from depositors like you and from corporate and government institutional lenders. Obviously, they need to charge you a rate higher than what they pay out. The difference between the cost of their borrowing (also referred to as their cost of funds) and the cost of your borrowing, or home loan rate, is their 'spread'. The higher the spread, the greater their profits.
Floating rate loans. In the case of floating rate home loans, the bank or HFC determines the rate you pay with reference to some benchmark, referred to by different banks as 'prime lending rate' (PLR), 'advance rate', or 'mortgage rate' (see: Owning the Keys to the Treasury).
Owning the Keys to the Treasury
Banks
Benchmark
Fixed by
Current
benchmark
rate (%)
Current
floating
rate (%)1
Citibank
Citibank Mortgage Prime Rate
Bank
11.5
9.5
HDFC
Retail PLR
Bank
12.25
RPLR minus 2.75
ICICI Bank
Floating Reference Rate
Bank
10.25
9.5
SBI
State Bank Advance Rate
Bank
11
SBAR minus 1.25-2.25
Bank of Baroda
BoB Prime Lending Rate
Bank
11.5
BPLR minus 1.25-2.25
HSBC
Prime Lending Rate
Bank
11.5
9.5
ABN Amro Bank
Mortgage Floating Reference Rate
Bank
11.5
9.5
Kotak Bank
Prime Lending Rate
Bank
12.25
9.25
ING Vysya Bank
Home PLR
Bank
13.5
9.5
1As applicable to new borrowers
PLR: Prime Lending Rate
In all the above cases, the floating rate is revised every three months from the date of first disbursement and it matches the revision in benchmark rate; the benchmark rate is reviewed every quarter (exact date not specified by a majority of banks) and it is at the discretion of banks to revise it or not
Your floating loan carries a rate that is usually upto 3 per cent lower than this benchmark. But that does not mean you are being obliged - this benchmark rate is not the cost of funds for the bank or HFC. It is an internal measure related to the cost of funds.
Nor is there any legal sanctity to the difference between the benchmark and the floating rate. For instance, on 1 July 2006, Standard Chartered Bank had a current home loan reference rate of 12.50 per cent and stated that the floating loan interest will be upto 5 per cent below this. On 31 August, this was 9.85 per cent.
If the cost of funds goes up, banks and HFCs tend to maintain their spread by increasing their benchmark rates and hence your floating loan rates. But the two do not necessarily rise at the same pace or time.
Says Sujon Sinha, head, retail assets, UTI Bank, "When interest rates are falling, a bank lowers the prime lending rate only after the cost of funds falls by 0.50 to 0.75 per cent. But if the rates are climbing up, a bank is prompted to raise the rate for every 0.25 per cent rise in the cost of funds."
Obviously, you do not benefit by this arrangement. Says Harsh Roongta, CEO, apnaloan.com: "Lending rate affects only loans. A far more objective benchmark reference rate would be one that affects a much larger body of parties - for instance, fixed deposit rates, since they also represent the cost of funds for a bank or HFC."
Banks and HFCs even differentiate between existing floating rate customers and new ones. For example, as ICICI Bank reduced its internal retail PLR from 11.50 per cent in 2002 to 9.75 per cent in early 2004, its existing floating rate borrowers saw their loan rates drop by two per cent, but new borrowers received a further one per cent benefit.
Says Sreenivasalu Raju, loan manager at Andhra Bank: "The problem of non-transparent rates is felt by a customer only when the rates fall. A customer does not have an accurate idea of the fall in rates."
The case of Kamal Baldi, 43, illustrates what can happen when a bank follows an internal benchmark. When he signed up for a Citibank home loan in April 2005, it was at 7.25 per cent.
The bank uses an internal benchmark rate, mortgage PLR, and when it revised it upwards, his interest rate moved up to 7.75 per cent without any intimation. In April this year, his loan rate was further revised to 8.25 per cent, though he was informed this time around.
Floating rate loans. In the case of floating rate home loans, the bank or HFC determines the rate you pay with reference to some benchmark, referred to by different banks as 'prime lending rate' (PLR), 'advance rate', or 'mortgage rate' (see: Owning the Keys to the Treasury).
Owning the Keys to the Treasury
Banks
Benchmark
Fixed by
Current
benchmark
rate (%)
Current
floating
rate (%)1
Citibank
Citibank Mortgage Prime Rate
Bank
11.5
9.5
HDFC
Retail PLR
Bank
12.25
RPLR minus 2.75
ICICI Bank
Floating Reference Rate
Bank
10.25
9.5
SBI
State Bank Advance Rate
Bank
11
SBAR minus 1.25-2.25
Bank of Baroda
BoB Prime Lending Rate
Bank
11.5
BPLR minus 1.25-2.25
HSBC
Prime Lending Rate
Bank
11.5
9.5
ABN Amro Bank
Mortgage Floating Reference Rate
Bank
11.5
9.5
Kotak Bank
Prime Lending Rate
Bank
12.25
9.25
ING Vysya Bank
Home PLR
Bank
13.5
9.5
1As applicable to new borrowers
PLR: Prime Lending Rate
In all the above cases, the floating rate is revised every three months from the date of first disbursement and it matches the revision in benchmark rate; the benchmark rate is reviewed every quarter (exact date not specified by a majority of banks) and it is at the discretion of banks to revise it or not
Your floating loan carries a rate that is usually upto 3 per cent lower than this benchmark. But that does not mean you are being obliged - this benchmark rate is not the cost of funds for the bank or HFC. It is an internal measure related to the cost of funds.
Nor is there any legal sanctity to the difference between the benchmark and the floating rate. For instance, on 1 July 2006, Standard Chartered Bank had a current home loan reference rate of 12.50 per cent and stated that the floating loan interest will be upto 5 per cent below this. On 31 August, this was 9.85 per cent.
If the cost of funds goes up, banks and HFCs tend to maintain their spread by increasing their benchmark rates and hence your floating loan rates. But the two do not necessarily rise at the same pace or time.
Says Sujon Sinha, head, retail assets, UTI Bank, "When interest rates are falling, a bank lowers the prime lending rate only after the cost of funds falls by 0.50 to 0.75 per cent. But if the rates are climbing up, a bank is prompted to raise the rate for every 0.25 per cent rise in the cost of funds."
Obviously, you do not benefit by this arrangement. Says Harsh Roongta, CEO, apnaloan.com: "Lending rate affects only loans. A far more objective benchmark reference rate would be one that affects a much larger body of parties - for instance, fixed deposit rates, since they also represent the cost of funds for a bank or HFC."
Banks and HFCs even differentiate between existing floating rate customers and new ones. For example, as ICICI Bank reduced its internal retail PLR from 11.50 per cent in 2002 to 9.75 per cent in early 2004, its existing floating rate borrowers saw their loan rates drop by two per cent, but new borrowers received a further one per cent benefit.
Says Sreenivasalu Raju, loan manager at Andhra Bank: "The problem of non-transparent rates is felt by a customer only when the rates fall. A customer does not have an accurate idea of the fall in rates."
The case of Kamal Baldi, 43, illustrates what can happen when a bank follows an internal benchmark. When he signed up for a Citibank home loan in April 2005, it was at 7.25 per cent.
The bank uses an internal benchmark rate, mortgage PLR, and when it revised it upwards, his interest rate moved up to 7.75 per cent without any intimation. In April this year, his loan rate was further revised to 8.25 per cent, though he was informed this time around.
Loan Against Future Rent Recievables
Loan Against Future Rent Receivables has been developed considering the growth potential in the real estate in various metros and urban centers, where many commercial properties/shopping malls are being developed and the owners approach banks for loans against securitization of future rent receivables from such properties.
Key Benefits
* The scope for the New Product has been kept wide to cover the target groups, viz. owners of immoveable properties (lessor) belonging to all types of the constitution.
* The minimum and maximum loan limits are fixed at Rs.1 lac and Rs.1000 lacs respectively.
Key Benefits
* The scope for the New Product has been kept wide to cover the target groups, viz. owners of immoveable properties (lessor) belonging to all types of the constitution.
* The minimum and maximum loan limits are fixed at Rs.1 lac and Rs.1000 lacs respectively.
Baroda Scholar
Bank of Baroda presents financial assistance to students going abroad for Professional / Technical studies. The loan offering is designed to empower you with the financial capability to realise your dreams... Achieve your goals... Reach out to the maximum limits...
Terms & Conditions
Eligiblity of Courses :
Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical Courses offered by reputed Universities overseas.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc. The Institute should be recognized by the competent local aviation / shipping authority and Director General of Civil Aviation/shipping in India.
Student Eligiblity :
* Should be an Indian National.
* Secured admission to Professional/Technical Courses at foriegn Universities/Institutions.
Coverage of expenses (for overseas studies) :
* Admission/Tuition fees to College/University.
* Hostel/Mess charges.
* Examination/Library/Laboratory fee.
* Purchase of books/equipments/instruments.
* Caution deposit/building fund/refundable deposit supported by institution bills/reciepts.
* One way travel expenses/Passage money.
* Purchase of computers if essential for completion of the course.
* Any other expense required to complete the course e.g. study tour, project work, thesis etc.
Maximum amount of loan : Rs. 20.00 Lacs.
Margin : 15%
Repayment Period :
Repayment Holiday/Moratorium Period :
* Course period + 1 year or 6 months after getting job, whichever is earlier.
The loan is repayable in 5-7 years after the above period.
Security :
* Upto Rs.4.00/- lacs : No security
* Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable third
party guarantee alognwith assignment of future income.
* Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
amount along with assignment of future income
Rate of Interest :
* Simple interest during repayment holiday/moratorium period.
* 1% interest concession, if interest debited during the repayment holiday is serviced.
* 1% Concession in rate of interest to loans for girl student.
* Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lacs.
* PRESENT RATE OF INTEREST: CLICK HERE.
PROCESSING CHARGES: (CLICK HERE FOR DETAILS)
Terms & Conditions
Eligiblity of Courses :
Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical Courses offered by reputed Universities overseas.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc. The Institute should be recognized by the competent local aviation / shipping authority and Director General of Civil Aviation/shipping in India.
Student Eligiblity :
* Should be an Indian National.
* Secured admission to Professional/Technical Courses at foriegn Universities/Institutions.
Coverage of expenses (for overseas studies) :
* Admission/Tuition fees to College/University.
* Hostel/Mess charges.
* Examination/Library/Laboratory fee.
* Purchase of books/equipments/instruments.
* Caution deposit/building fund/refundable deposit supported by institution bills/reciepts.
* One way travel expenses/Passage money.
* Purchase of computers if essential for completion of the course.
* Any other expense required to complete the course e.g. study tour, project work, thesis etc.
Maximum amount of loan : Rs. 20.00 Lacs.
Margin : 15%
Repayment Period :
Repayment Holiday/Moratorium Period :
* Course period + 1 year or 6 months after getting job, whichever is earlier.
The loan is repayable in 5-7 years after the above period.
Security :
* Upto Rs.4.00/- lacs : No security
* Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable third
party guarantee alognwith assignment of future income.
* Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
amount along with assignment of future income
Rate of Interest :
* Simple interest during repayment holiday/moratorium period.
* 1% interest concession, if interest debited during the repayment holiday is serviced.
* 1% Concession in rate of interest to loans for girl student.
* Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lacs.
* PRESENT RATE OF INTEREST: CLICK HERE.
PROCESSING CHARGES: (CLICK HERE FOR DETAILS)
Baroda Career Development
Gainfully employed persons intend to pursue higher education, vocational courses, trainings, pilot trainings, skill up gradation, diploma or degree courses offered in aviation, hospitality and travel management, executive development etc. in India / abroad.
To help the future management leaders acquire higher specialized managerial skills and dominate the global arena, Bank of Baroda brings to you Baroda Career Development, a unique loan facility for working persons.
Terms & Conditions
Eligiblity of Courses :
* Graduate, Post Graduate, Diploma, Professional Courses, Specialization courses offered by reputed Universities/ Institutions (Indian or Overseas), having assured employment prospects,
* Skill up gradation courses offered by various institutes (Indian/Overseas), having assured employment prospects,
* Courses offered by Hospitality Management Institutes for Skill upgrade/Short course/ Training etc.
* Pilot Training Courses, offered by reputed Institutions (Indian or Overseas), approved by Director General of Civil Aviation (DGCA) /International Civil Aviation Organization (ICAO).
Student Eligiblity :
* Should be an Indian National.
* Have secured admission to the course through entrance test / merit based selection process.
Maximum Quantum of Loan :
* Need based finance subject to repaying capacity of applicant, based on present / expected income after completion of the course.
* In India: Rs. 10.00 Lacs.
* Abroad : Rs. 20 Lacs.
Coverage of expenses :
* Tuition Fees, Examination/ Library fee etc. charged by the Institution.
* Hostel fees.
* Cost of Books, equipments, instruments, etc.
* Personal Computers/ Laptops, wherever required.
* Any other expenses required to complete the Course viz: Study Tours, Project works, thesis, etc.
Margin :
15% (Any scholarship / assistantship, if received, would not be included in margin).
Repayment Period :
* Maximum 60 EMIs.
Repayment Holiday :
* Course period + 6 months or 3 months after getting a job, whichever is earlier.
Security :
* 100% tangible collateral security by way of mortgage of property or assignment of securities NSC, KVP, LIC policy, FDR etc.
* Personal guarantee of Father / mother of the applicant or any other person having sufficient worth.
RATE OF INTEREST: (CLICK HERE FOR CURRENT INTEREST RATES).
PROCESSING CHARGES: (CLICK HERE FOR DETAILS)
To help the future management leaders acquire higher specialized managerial skills and dominate the global arena, Bank of Baroda brings to you Baroda Career Development, a unique loan facility for working persons.
Terms & Conditions
Eligiblity of Courses :
* Graduate, Post Graduate, Diploma, Professional Courses, Specialization courses offered by reputed Universities/ Institutions (Indian or Overseas), having assured employment prospects,
* Skill up gradation courses offered by various institutes (Indian/Overseas), having assured employment prospects,
* Courses offered by Hospitality Management Institutes for Skill upgrade/Short course/ Training etc.
* Pilot Training Courses, offered by reputed Institutions (Indian or Overseas), approved by Director General of Civil Aviation (DGCA) /International Civil Aviation Organization (ICAO).
Student Eligiblity :
* Should be an Indian National.
* Have secured admission to the course through entrance test / merit based selection process.
Maximum Quantum of Loan :
* Need based finance subject to repaying capacity of applicant, based on present / expected income after completion of the course.
* In India: Rs. 10.00 Lacs.
* Abroad : Rs. 20 Lacs.
Coverage of expenses :
* Tuition Fees, Examination/ Library fee etc. charged by the Institution.
* Hostel fees.
* Cost of Books, equipments, instruments, etc.
* Personal Computers/ Laptops, wherever required.
* Any other expenses required to complete the Course viz: Study Tours, Project works, thesis, etc.
Margin :
15% (Any scholarship / assistantship, if received, would not be included in margin).
Repayment Period :
* Maximum 60 EMIs.
Repayment Holiday :
* Course period + 6 months or 3 months after getting a job, whichever is earlier.
Security :
* 100% tangible collateral security by way of mortgage of property or assignment of securities NSC, KVP, LIC policy, FDR etc.
* Personal guarantee of Father / mother of the applicant or any other person having sufficient worth.
RATE OF INTEREST: (CLICK HERE FOR CURRENT INTEREST RATES).
PROCESSING CHARGES: (CLICK HERE FOR DETAILS)
Baroda Personal Loan
A wedding in the family. Maybe it's high time you surprised your spouse with a priceless gift. Or you simply need to pamper your family with an extended vacation. These are the times when you may need a helping hand. That's when you can bank on us. Bank of Baroda's Personal Loan offers financial help to meet your personal requirements.
Key Benefits
* Helps you take care of all kinds of expenses at a short notice.
* The Loan may be availed to meet expenses related to marriage, travel, honeymoon, holiday and medical expenditure or for any other personal use.
* The loan is also available to Pensioners/Defence Pensioners
* Loan is also available for Earnest Money Deposits for buyers of home/flat/plot.
Key Benefits
* Helps you take care of all kinds of expenses at a short notice.
* The Loan may be availed to meet expenses related to marriage, travel, honeymoon, holiday and medical expenditure or for any other personal use.
* The loan is also available to Pensioners/Defence Pensioners
* Loan is also available for Earnest Money Deposits for buyers of home/flat/plot.
Baroda Traders Loan
The Baroda Traders Loan facility enables individuals, Proprietorships, bodies such as Partnership firms and Co-op societies to avail of working capital or undertake development of shop by way of loan/overdraft. Dealers in gold/ silver jewelry are also covered under the scheme.
Key Benefits
* Option to avail the credit facility as loan or overdraft.
* Advance available up to Rs. 200 Lacs.
* Loan can be repaid in a maximum period of 60 months.
Terms & Conditions
* The business units should have been established in the line of business for a minimum period of 2 years
* Loan limits
o Minimum : Rs. 25,000/-
o Maximum : Rs. 200 Lakhs
* Margin
o 40% on market value of immovable property.
o 10% on Bank's own Fixed Deposits.
o 15% on face value of NSCs, Govt. Bonds, surrender value of LIC policies.
* Security
o Tangible collateral Securities in the form of mortgage of land (not agricultural land) and building is acceptable as security
o National Savings Certificates, Government Bonds, our Bank's Term Deposits, Assignment of Life Insurance Policies, standing in the name of the borrower/proprietor/partner/director are acceptable as security.
RATE OF INTEREST: (CLICK HERE FOR CURRENT INTEREST RATES).
PROCESSING CHARGES: (CLICK HERE FOR DETAILS)
Key Benefits
* Option to avail the credit facility as loan or overdraft.
* Advance available up to Rs. 200 Lacs.
* Loan can be repaid in a maximum period of 60 months.
Terms & Conditions
* The business units should have been established in the line of business for a minimum period of 2 years
* Loan limits
o Minimum : Rs. 25,000/-
o Maximum : Rs. 200 Lakhs
* Margin
o 40% on market value of immovable property.
o 10% on Bank's own Fixed Deposits.
o 15% on face value of NSCs, Govt. Bonds, surrender value of LIC policies.
* Security
o Tangible collateral Securities in the form of mortgage of land (not agricultural land) and building is acceptable as security
o National Savings Certificates, Government Bonds, our Bank's Term Deposits, Assignment of Life Insurance Policies, standing in the name of the borrower/proprietor/partner/director are acceptable as security.
RATE OF INTEREST: (CLICK HERE FOR CURRENT INTEREST RATES).
PROCESSING CHARGES: (CLICK HERE FOR DETAILS)
Baroda Home Improvement Loan
Bank of Baroda brings to you a unique loan product. A loan for Repairs / Renovations / Improvement / Extension of Home and for Furniture, Fittings & Fixtures.
Key Benefits
* Loan available for repairs / renovation / improvement / extension of the existing house.
* Loan available for purchase of furniture / fixtures / furnishing / other gadgets such as fans, geysers, air conditioners etc. required, to:
o Our existing housing loan borrowers
o New borrowers
* Free Credit Card:
Free Credit Card (complementary for first year) will be issued to borrowers with loan limit above Rs.2/-lacs.
Key Benefits
* Loan available for repairs / renovation / improvement / extension of the existing house.
* Loan available for purchase of furniture / fixtures / furnishing / other gadgets such as fans, geysers, air conditioners etc. required, to:
o Our existing housing loan borrowers
o New borrowers
* Free Credit Card:
Free Credit Card (complementary for first year) will be issued to borrowers with loan limit above Rs.2/-lacs.
Baroda Home Loan Be a proud home owner in 6 days
Bank of Baroda invites you to be a proud owner of your own home and offers easy Home Loan with a number of conveniences to suit your budget.
Home Loan is available for:
* Purchase of new / old dwelling unit.
* Construction of house.
* Purchase of plot of land for construction of a house.
* Repaying a loan already taken from other Housing Finance Company / Bank.
* Repayment period up to 25 years (floating rate option).
For detailed information on the benefits you can avail of, and terms and conditions to follow for the same, CLICK HERE.
Home Loan is available for:
* Purchase of new / old dwelling unit.
* Construction of house.
* Purchase of plot of land for construction of a house.
* Repaying a loan already taken from other Housing Finance Company / Bank.
* Repayment period up to 25 years (floating rate option).
For detailed information on the benefits you can avail of, and terms and conditions to follow for the same, CLICK HERE.
Baroda Car Loan from BARODA BANK
Special Festival Offer on Car Loans (01.10.09 - 31.10.09)
For loans of tenor upto 3 years: 2.25% below BPLR i.e. 9.75%
For loans of tenor over 3 years: 1.75% below BPLR i.e. 10.25%
irrespective of the loan amount
In today's fast paced world, a vehicle is but a necessity. Yet other expenses and plans in life take priority and the dream of owning a car takes a back seat. Whether as a comfortable and dependable means of transport or as a status symbol in society, we believe you deserve ownership of a vehicle.
The Car Loans from Bank of Baroda are designed to finance the car that suits your need and matches to your status & taste.
Bank of Baroda also presents a unique add on facility for installation of CNG / LPG gas-kit in new/old (not more than 3 years) four wheeler. Save money. Save earth. Convert to alternative fuel today and bank on us for your financial requirements.
Key Benefits
* Loans available up to Rs 15 Lacs for any car make/model (Inclusive of Gas-Kit).
* Loans can be availed for new and second-hand vehicles (Not more than 3 years old).
* Repayment period as long as 7 years.
* Low interest rates.
For loans of tenor upto 3 years: 2.25% below BPLR i.e. 9.75%
For loans of tenor over 3 years: 1.75% below BPLR i.e. 10.25%
irrespective of the loan amount
In today's fast paced world, a vehicle is but a necessity. Yet other expenses and plans in life take priority and the dream of owning a car takes a back seat. Whether as a comfortable and dependable means of transport or as a status symbol in society, we believe you deserve ownership of a vehicle.
The Car Loans from Bank of Baroda are designed to finance the car that suits your need and matches to your status & taste.
Bank of Baroda also presents a unique add on facility for installation of CNG / LPG gas-kit in new/old (not more than 3 years) four wheeler. Save money. Save earth. Convert to alternative fuel today and bank on us for your financial requirements.
Key Benefits
* Loans available up to Rs 15 Lacs for any car make/model (Inclusive of Gas-Kit).
* Loans can be availed for new and second-hand vehicles (Not more than 3 years old).
* Repayment period as long as 7 years.
* Low interest rates.
Types of Loans
Stafford Loan:
Eligibility:
* be a U.S. citizen or eligible non-citizen
* have a high school diploma or GED certification
* not be in default on any other student loans
* be enrolled at least half time in an accredited degree program
* Undergraduate, Graduate, or Professional student
Facts:
* Provided directly by the government (Federal Direct Student Loan Program (FDSLP)) or through banks, credit unions, or savings and loan associations (Federal Family Education Loan Program (FFELP)).
* Option to choose a Subsidized or Unsubsidized Loan.
* The subsidized loan is based on financial need. The interest is paid by the government during your time in school, for the first six months after you leave school, and, if you qualify, to have your payments deferred.
* In an unsubsidized loan, you must pay the interest from the time you are awarded the loan but you can have the payments deferred until after graduation, which lets you accumulate and capitalize the interest (adding the interest amount to your loan balance). All students are eligible for an unsubsidized loan regardless of financial need.
* Some students have the option to combine unsubsidized and subsidized loans.
* Starting July 1, 2006, the interest rate will be a fixed rate of 6.8%.
* The amount awarded is based on your class standing and dependency status. Graduate students can borrow up to $18,500. Health professionals can borrow up to $38,500.
* There is a 4% fee, which is deducted from the amount of money awarded.
* Loans will be distributed by your school in two installments and remaining funds can be either set aside or given to you in a form of a check.
* You must repay your loan starting 6 months after you finish school or if you drop below half-time. You will have 10-30 years to repay the loan based on the amount and plan received.
Federal Perkins Loan:
Eligibility:
* be a U.S. citizen or eligible non-citizen
* have a high school diploma or GED certification
* not be in default on any other student loans
* be enrolled at least half time in an accredited degree program
* Undergraduate or Graduate students
Facts:
* Provided by your school, which receives the funds through the government.
* It’s a subsidized loan, in which the government pays the interest while you are in school.
* There are no fees.
* The interest rate is 5%.
* Undergraduate students are awarded up to $4,000 yearly and graduate students are awarded up to $6,000 yearly.
* The amount awarded is based on financial need, other aid received, and available funds at the school.
* Each school is provided with a certain amount of money to award yearly and, thus, funds can be insufficient. It is recommended that you submit your FAFSA as early as possible to receive that amount of funds necessary.
* The school will pay you directly through a check or credit your account. You will receive 2 payments per year.
* You will have 10 years to repay your loan based on the amount received.
Private Loans:
Undergraduate, graduate, and professional students have the option to take out loans through private sources of funding, such as a bank. You do not need to submit the FAFSA for a private loan but you do have to apply through the private organization. Different types of loans are provided based on your level of education. However, private loans are more expensive than government loans. Only turn to private loans if necessary.
Consolidated Loans:
Consolidated loans offer students the opportunity to combine all the different federal loans received into one big loan with one monthly payment. The advantage of a consolidated loan is that you can take longer to repay your loan and have lower monthly payments. The Federal Perkins and Stafford Loans are eligible for consolidation. To get a consolidated loan, you need to contact the appropriate department of the lender for an application. You can apply for a consolidated loan during your grace period or once you begin repayment. The interest on a consolidated loan never exceeds 8.25% and is a fixed rate.
Because there are limited scholarships, fellowships, grants, and assistantships, all students are encouraged to apply for a loan. Loans can help pay for school, living expenses, textbooks, and other day to day things. Loans can limit the amount of stress involved in finding ways to pay for school.
Eligibility:
* be a U.S. citizen or eligible non-citizen
* have a high school diploma or GED certification
* not be in default on any other student loans
* be enrolled at least half time in an accredited degree program
* Undergraduate, Graduate, or Professional student
Facts:
* Provided directly by the government (Federal Direct Student Loan Program (FDSLP)) or through banks, credit unions, or savings and loan associations (Federal Family Education Loan Program (FFELP)).
* Option to choose a Subsidized or Unsubsidized Loan.
* The subsidized loan is based on financial need. The interest is paid by the government during your time in school, for the first six months after you leave school, and, if you qualify, to have your payments deferred.
* In an unsubsidized loan, you must pay the interest from the time you are awarded the loan but you can have the payments deferred until after graduation, which lets you accumulate and capitalize the interest (adding the interest amount to your loan balance). All students are eligible for an unsubsidized loan regardless of financial need.
* Some students have the option to combine unsubsidized and subsidized loans.
* Starting July 1, 2006, the interest rate will be a fixed rate of 6.8%.
* The amount awarded is based on your class standing and dependency status. Graduate students can borrow up to $18,500. Health professionals can borrow up to $38,500.
* There is a 4% fee, which is deducted from the amount of money awarded.
* Loans will be distributed by your school in two installments and remaining funds can be either set aside or given to you in a form of a check.
* You must repay your loan starting 6 months after you finish school or if you drop below half-time. You will have 10-30 years to repay the loan based on the amount and plan received.
Federal Perkins Loan:
Eligibility:
* be a U.S. citizen or eligible non-citizen
* have a high school diploma or GED certification
* not be in default on any other student loans
* be enrolled at least half time in an accredited degree program
* Undergraduate or Graduate students
Facts:
* Provided by your school, which receives the funds through the government.
* It’s a subsidized loan, in which the government pays the interest while you are in school.
* There are no fees.
* The interest rate is 5%.
* Undergraduate students are awarded up to $4,000 yearly and graduate students are awarded up to $6,000 yearly.
* The amount awarded is based on financial need, other aid received, and available funds at the school.
* Each school is provided with a certain amount of money to award yearly and, thus, funds can be insufficient. It is recommended that you submit your FAFSA as early as possible to receive that amount of funds necessary.
* The school will pay you directly through a check or credit your account. You will receive 2 payments per year.
* You will have 10 years to repay your loan based on the amount received.
Private Loans:
Undergraduate, graduate, and professional students have the option to take out loans through private sources of funding, such as a bank. You do not need to submit the FAFSA for a private loan but you do have to apply through the private organization. Different types of loans are provided based on your level of education. However, private loans are more expensive than government loans. Only turn to private loans if necessary.
Consolidated Loans:
Consolidated loans offer students the opportunity to combine all the different federal loans received into one big loan with one monthly payment. The advantage of a consolidated loan is that you can take longer to repay your loan and have lower monthly payments. The Federal Perkins and Stafford Loans are eligible for consolidation. To get a consolidated loan, you need to contact the appropriate department of the lender for an application. You can apply for a consolidated loan during your grace period or once you begin repayment. The interest on a consolidated loan never exceeds 8.25% and is a fixed rate.
Because there are limited scholarships, fellowships, grants, and assistantships, all students are encouraged to apply for a loan. Loans can help pay for school, living expenses, textbooks, and other day to day things. Loans can limit the amount of stress involved in finding ways to pay for school.
Definition
An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk).
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