Welcome to the viewing of episode 17 of Loanflix Inshorts. This episode focuses on the importance of loan insurance in the education loan process.
Loanflix InShorts is a series of really small duration, three-minute episodes which cover some of the niche topics of the abroad education loan process. The major aim behind introducing Loanflix InShorts is to provide knowledge of the education loan process at a deeper level, thus enabling you to have a hassle-free experience.
Borrowing an education loan for higher studies involves risks for both lenders and borrowers alike. The risks involved for a lender are higher as compared to the borrower in the case of student loans with the rise in the number of such loans turning bad. The borrowers of a study abroad loan rarely take into consideration the possibility of repayment of their study abroad loan in case of a mishap like a life-threatening accident leading to permanent disability or worse, death. This is when having loan insurance comes in handy. This episode of Loanflix sheds light on the importance of having an education loan insurance in the abroad education loan process. It is explained with the help of the following points.
What is Loan Insurance? How is it Crucial To the Overseas Education Loan Process?
The episode begins with Damini explaining the meaning of loan insurance and where it stands in the scheme of things of an abroad education loan process. She explains how having an education loan insurance can be helpful especially in lessening the burden of education loan repayment off co-applicants’ shoulders if something was to happen to the main borrower.
Is it Compulsory To Purchase an Education Loan Insurance?
In this part of the episode, viewers get to learn whether education loan insurance is a compulsory requirement in the overseas education loan process. Although the number of students borrowing an overseas education loan in India is high, very few are aware of the role that loan insurance plays in the process. You will also learn about some of the salient features of certain particular loan insurance schemes, for example, the SBI loan insurance scheme which goes by the name of SBI Rinn Raksha, such as what it covers and how much loan insurance fee is charged by lenders for the same and its benefits.
How Much Amount Do Lenders Charge as Loan Insurance Fee?
Get to know all about the loan insurance fee charged by lenders for an education loan insurance in this part of the episode.
Payment Process To Be Followed For Purchasing Loan Insurance
The payment rules followed by lenders of secured education loans and non-collateral education loans are different. In this part of the episode, get to learn all about the various protocols followed by lenders of loan insurance with respect to the payment of loan insurance fee.
How Do You Benefit From Purchasing an Education Loan Insurance?
Last, but not the least, you get to understand the various benefits of purchasing an education loan insurance. For example, did you know that purchasing an SBI Rinn Raksha policy could help you get a 0.5% off on your education loan interest rate? Get to know about some more interesting benefits of borrowing an education loan insurance in this part of the episode.
With this point, the 17th episode comes to an end. Do stay tuned to collect more information on the various provisions of an education loan process through the Loanflix Inshorts series.
Date And Time
Timezone : (GMT+05:30) Chennai
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Damini is the Cofounder & CEO of WeMakeScholars.com. It’s a BITS start up supported and funded under the IT Ministry, Govt. of India. The organisation’s motive is to offer unbiased collateral/non-collateral based education loan support to students who are planning for studying abroad. As this initiative is under the digital India campaign, it's at free of cost. WMS works with 14+ banks (public/pvt) in India and help you get the best edu loan matching your profile.
Prior to launching WeMakeScholars, Damini had done her masters from the University of Sheffield, UK. Her education was funded under the Developing Solutions Masters Scholarship which covered her full tuition fee ($ 38,000). Damini is also a gold medalist in her Bachelors and also won the outstanding student award from the Vice president of India.
She was the speaker at TiECon 2016 at Silicon valley, San Francisco in the social entrepreneurship segment. She was also covered in the Asian Entrepreneur magazine in the “Women on Top in Tech”, a global series of Women Founders, CEOs & Leaders in Tech.