Loans:

Students or their families can borrow loans at favorable interest rates from local banks and repay over an extended period of time. But these must be taken after a great deal of thought. Most loans in India come with an annual interest burden of 10 to 12 per cent. Other terms and conditions have been relaxed to a great extent to make quality education accessible to more students. Repayment begins after one year of course completion. However, students and their families must take into consideration that student's ability to secure a job and earn in dollars to repay the loan depends on whether he or she gets a work permit visa. Careful planning is both necessary and wise.
If an individual has been employed for 5 or more years without a major break, banks see him as a good prospect to lend. The loan approval in this case can be very speedy and the best interest rates are reserved for him provided he's working at a reputed and trusted source. Contractual employees do not find favors with banks and financial institutions. In case the loan product in consideration is a secured loan like a car loan, banks do relent, provided the contractual employee meets the income and other eligibility requirements, because they have the car as the collateral or security. In case of unsecured loans like personal loans and high ticket loans of longer tenures like home loans, banks definitely shy away from those having contractual or temporary employment.
The secret to getting a quick approval lays in matching the credit profile of the loan product and the bank perfectly. Income, employment requirements, age, residence, education and other eligibility requirements should be met completely and care should be taken that correct documents required by the banks to establish the facts should be presented promptly. The customer should be provided with all the necessary information about a particular product so that he is able to determine the pros and cons of that particular product. If a customer has applied for a loan, his application should be acknowledged and a time frame should be give within which the bank will take its decision and convey it to the applicant.
The banks should decide a time frame within which all the shortcomings regarding a loan application should be communicated to the customer. The banks and financial institutions should clearly communicate the interest rates on different loan products through various popular media like the bank's branches, outlets, website, print and other media. All borrowers should be informed periodically about the interest rates applicable to their loans. Any revision in the interest rates should be communicated to the concerned borrower with in specified time frame by various popular communication methods.