After sitting on my behind for quite a while now, I finally seem to have shrugged off some of my laziness and have started moving in the right direction - I finally applied for a bank loan! This of course, is the loan for the (rather steep) tuition expenses I have to bear to study at IESE. How steep? So much that 5 years ago, I hadn't even imagined that I'd be shelling out this much money for *anything* in the world. Yet today, I'm ready to mortgage my soul to the devil even, to lay my hands on Eur 60,000 approx - and that's just the tuition fees.
The good thing, however, is that IESE has a tie-up with Banco Sabadell and thanks entirely to this agreement, accepted students get a collateral free loan from the bank. In plain words, all the bank needs is a signature on the application, and you get yourself a loan. No showing lots of money in the account, or providing proof that your family owns land equivalent in value to Versailles.
That's easier said than done, though. Here's the current deal they're offering (this may change anytime, as it rests at the discretion of the bank) -
Loan amount - Eur 60k approx
Repayment period - 8 years
Capital deferment - First 2 years (i.e. you don't make any capital related payments to the bank for the first 2 years - that's when you're studying - but pay for the accrued interest)
Interest rate - 4.05% for the first year and 4.05% + - some variation.
Guarantee - Personal only. No co-signors, no collateral required.
The only flip side is the Payment Protection Insurance (PPI) that non-Spanish students have to take mandatorily, and the premium amount for the PPI for 8 years works out to roughly Eur 8000, which needless to say, is covered by the loan. But it still comes out of my pocket, when I'm repaying the loan.
Anyways, PPI or no PPI, I've at least gone ahead and applied for a loan. And quite honestly, it was the best deal I could've got. Come on, who in India is ready to give that big a loan, solely on a personal guarantee, at 4% odd interest, unless you're royalty, in which case, you don't need a loan! I rest my case. Next step? PCC, here I come!
The good thing, however, is that IESE has a tie-up with Banco Sabadell and thanks entirely to this agreement, accepted students get a collateral free loan from the bank. In plain words, all the bank needs is a signature on the application, and you get yourself a loan. No showing lots of money in the account, or providing proof that your family owns land equivalent in value to Versailles.
That's easier said than done, though. Here's the current deal they're offering (this may change anytime, as it rests at the discretion of the bank) -
Loan amount - Eur 60k approx
Repayment period - 8 years
Capital deferment - First 2 years (i.e. you don't make any capital related payments to the bank for the first 2 years - that's when you're studying - but pay for the accrued interest)
Interest rate - 4.05% for the first year and 4.05% + - some variation.
Guarantee - Personal only. No co-signors, no collateral required.
The only flip side is the Payment Protection Insurance (PPI) that non-Spanish students have to take mandatorily, and the premium amount for the PPI for 8 years works out to roughly Eur 8000, which needless to say, is covered by the loan. But it still comes out of my pocket, when I'm repaying the loan.
Anyways, PPI or no PPI, I've at least gone ahead and applied for a loan. And quite honestly, it was the best deal I could've got. Come on, who in India is ready to give that big a loan, solely on a personal guarantee, at 4% odd interest, unless you're royalty, in which case, you don't need a loan! I rest my case. Next step? PCC, here I come!
posted by Ashwyn at
7:54 p. m.
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