Can I get Education Loan for Pursuing CFA in India?

Gone are the days when graduation was sufficient to land excellent job opportunities. Today, higher education is a must, and there is no shortage of courses or aspirants in the country. Every conceivable discipline from literature to linguistics, engineering to oceanography, commerce to management and  finance to accounting has a specialised course for students to pursue.

One such attractive certification course is Chartered Financial Analyst (CFA), which has been grabbing the attention of students who have completed their MBAs or worked in organizations with some finance background . After all, as a certified CFA, you can bag well-paying and rewarding jobs like financial strategists, advisors, fund managers and portfolio managers

If you are interested in pursuing the course and are looking for ways to finance your education, keep reading.

What is CFA?

Among the finance courses, a Chartered Financial Analyst (CFA) is a popular certification to possess to make a career in the finance industry. CFAs obtain jobs as financial strategists, advisors, fund managers and portfolio managers. The jobs are well paying and satisfying.

To become a CFA, students have to undergo three levels of exams and possess a deep understanding of different aspects of finance. And to prepare for the exams, they must study the subjects thoroughly. Although various institutes offer these courses, not every student can afford to pursue them due to financial struggles. This is why an education loan for CFA is a boon for students.

Now, let’s take an example of a student named Peter.

Peter is a post-graduate in commerce who intends to enrol in the CFA program offered by some leading institutes in India and abroad. However, he is unable to pay the fee needed to prepare for the three-level exams. He finds that most lenders and NBFCs offer education loans under whose umbrella the CFA course he intends to pursue also features.

These loans come under the regulation of the government with benefits such as:

• Low-interest rate – PLR plus up to 1% extra
• Repayment to commence one year after completion of study or securing a job, whichever occurs earlier
• Simple interest during the period under study
• Tax benefits for interest payment and repayment of principal

Most institutes offering CFA programs have tie-ups with lenders to facilitate the loan process. Besides, education loans are easy to obtain with minimal documentation comprising:

• Admission letter from recognised institute either in India or abroad
• Statement of the estimate of expenses including tuition fees and other costs associated with training with supporting documents
• KYC documents
• Educational qualification documents
• Credit score

Also, a few points to consider:

• There is no collateral if the loan is less than Rs 4 lakh
• No margin if the loan is less than Rs 4 lakh
• Your parents can become co-applicants
• The maximum loan amount is Rs 15 lakh if you study in India or Rs 30 lakh abroad
• You can take the loan in 3 instalments coinciding with each exam – there is no need to take the entire amount in one go.

Lenders consider the following factors before granting a loan:

• The education institute
• All costs are attributable to study, including tuition fees, computer time, books, hostel stay, food etc.
• The student’s earning potential post studies
• The past record of the student
• The creditworthiness of student and co-applicant
• Collateral security – property, FDs, insurance policies
• Choice of repayment options
• KYC documents of student and co-applicant

Moreover, some lenders offer limits higher than Rs 4 lakh and also consider other factors that support your creditworthiness, such as:

• High credit score
• Insurance policies with surrender value
• Past relationship with the lender
• No default on any repayment of the loan
• Prompt repayment of EMIs on other loans, if taken   

So, like Peter, are you asking yourself – Can I get an education loan for CFA? The answer is yes!

Conclusion

We at Tata Capital invite students such as Peter to avail of our education loan. We offer these loans under the personal loan category with straightforward and hassle-free processes and competitive personal loan interest rates. What’s more, if your credentials are excellent, you can also get a no-collateral education loan! So, why delay? Log on to our website and apply for a loan today!