Are you interested in obtaining a graduation degree in hospitality management from a prestigious college but find it expensive? Will it be a wise career choice for you? How to get a scholarship for hotel management? Which organizations offer education loans to hospitality management students? What are the types of education loans available and how to apply? This article will answer all your queries and provide you with an entire lowdown on the steps to follow to get Education Loan for Hotel Management.
What is Hospitality Management?
Hospitality management is an impressive career choice for young aspirants. Students pursuing hospitality management gain the necessary knowledge and skills required to build a career in the hospitality industry. The areas include human resource management, managing hotel finance, marketing, operations, and administration.
Many people have the misconception that getting a job in a hotel isn’t difficult. However, it is not only about greeting a customer courteously. A successful manager in the hospitality industry needs to be skilled in diverse areas such as food service, revenue forecasting, communication, people management, and budgeting.
So, he/she has to obtain a relevant degree to start working in the hospitality industry. Education loan for Hotel Management makes it easy for many students to fulfil their dreams of getting a secure job in restaurant or hotel management. Before learning how to finance your hotel management studies, learn how the degree can benefit you.
Will a degree in hospitality management be worth it?
When it comes to choosing a career path, it is better to weigh all your options. Are you skeptical about enrolling yourself in a management college? That’s probably because you are unsure of the kinds of jobs you can land after you graduate. There are excellent job opportunities for college pass-outs. All you’ll need is a bachelor’s degree in hospitality management to apply for various types of jobs. You will also get to select a job based on your areas of interests. Some of the most popular jobs in this field are event planning, tourism, beverage and food service at bars and restaurants, and jobs in five-star hotels.
How much does it cost to do a hotel management course in India?
The type of course you select determines the average fees. It also varies depending on various factors such as reputation of the college, location, etc. The course fees for undergraduate hotel management courses generally range between INR 1,00,000 and INR 6,00,000. As it isn’t a small amount, people who require financial assistance can get Education Loan for Hotel Management from banks and NBFCs.
How to finance your education in hospitality management?
The funding needed to study hospitality management from a reputed institution can be quite high. But that doesn’t mean you have to let go of your dream of joining the hospitality sector. This is why many students rely on an Education Loan for Hotel Management to acquire a degree in hospitality. While loan is available, Indian lenders can be picky when it comes to offering education loan to a candidate. So, stay tuned to this article till the end to learn about your best funding options.
What is education loan in India?
An education loan is a kind of loan that helps students meet the financial obligations to complete their higher studies. Many NBFCs, government banks, and private banks provide education loans to passionate students at competitive rates so that they can become the leaders and innovators of tomorrow.
How to pay for your degree in Hospitality Management
If you seek employment with an esteemed hotel or restaurant chain, you will require a degree in hospitality from a well-known institution. However, the average cost becomes a concern for many families. When paying for your hotel management education, there are several options you can explore.
Scholarship opportunities, Pell grants, student loans, tax credits, and work-study programs are there to help you complete your higher education. Several programs subsidize all or most of the loan. So, does education loan cover hostel fees? The answer’s yes.
Now here are two things you can do to repay your loan within the stipulated time:
- Utilize available financial resources
Planning ahead of time is the best way of ensuring you repay your education location on time. If you use several resources for paying off your student debt, it will be simple for you to manage your funds and free yourself from debt as soon as possible. That’s because carrying a debt in the beginning of your career is a significant burden. Hence, the quicker you get rid of it, the more peace of mind you’ll enjoy.
As you will be a part of the hospitality industry after your graduation, it’s a brilliant idea to do some internship programs during your graduation years. Working as a hotel receptionist, bar tender, cook, or a restaurant server while attending management school will allow you to gain experience. You will also have a consistent income and can pay off part of your Education Loan for Hotel Management from the money you make. It will also prepare you physically and mentally to devote long and difficult hours when you work full-time.
- Start working in the hospitality industry
Analyze your current income, expenses on books and tuition, as well as living expenses and begin your quest for a job. When you look for managerial job roles, the experience you gained as a bartender, cook, or waiter will be immensely valuable. Even if employers recruit freshers based solely on their hospitality degree, industry-relevant experience will make your resume stand out. And then, you have to work your way up to a management post to be paid a handsome CTC. As the hospitality industry is expanding, you can earn six figures if you are hardworking and determined.
Jobs for people with a hospitality management degree
Wondering what types of jobs can you crack with your hospitality management degree? Once you have completed your course after taking Education Loan for Hotel Management, you wish to start working as soon as possible. Your degree will open paths for you in the following fields:
- Tourism management
- Services of beverages and food
- Event management and planning
- Handling the supply of beverages and food
- Hotel and accommodation management
- Tourist lodging and hotel operations
You have to create a resume highlighting all your academic qualifications and key skills to get hired by big companies. Depending on your expertise and experience, you can earn a decent salary in the hospitality sector.
Kinds Of Education Loans Available In India For A Hospitality Management Course
Education Loan for Hotel Management in India falls under two distinct categories. The categories have been determined as per a student’s requirement of collateral security. If you get education loan based on collateral security, it is known as secured education loan. On the contrary, education loan lent without any collateral security is categorized as unsecured education loan.
- Secured education loan- The leading government banks like Bank of Baroda, State Bank of India, Punjab National Bank, etc. mainly provide secured education loan to deserving candidates. Most students studying hotel management courses prefer to take loans from government banks as they are reliable sources. However, government-run organizations are quite strict while giving loans.
- Unsecured education loan- Education loans approved without collateral are called unsecured education loans. Private financial organizations (known as NBFCs) and private banks lend these loans. NBFCs are non-banking finance agencies that provide unsecured education loans to students pursuing hotel management courses.
The terms and conditions specified by government banks, private banks and NBFCs for education loans are different and discussed in the following paragraphs. Whether you want to take your student loan from a prominent government organization, or a famous private bank is your choice.
Secured Education Loan For Hospitality Management Courses
A lot of hospitality management students who need education loan turn to government banks which are acknowledged as the best banks for student loan in India. Collateral security is mandatory to get secured education loans. So, what are the assets you can pledge as collateral against the amount you’ll borrow? Liquid security and immovable property are two types of assets that you can show.
One of the perks of taking Education Loan for Hotel Management from a government bank is that you can name a third party as a co-applicant. This means, the person doesn’t have to be a family member. Any friend, cousin, or acquaintance can be your co-applicant. So, this helps people who don’t have a family member with a stable income source.
Many students forget about their dream of studying abroad thinking they won’t get loan from a government back due to lack of collateral. That’s because they are unaware of the flexible policies that govt. banks adopt for such students. They can pledge assets belonging to a third-party as their collateral security and claim their Education Loan for Hotel Management without any issues.
Another serious concern that often bothers many loan applicants is the processing time. Government banks often take a long time to process the loan. To speed up the process and avoid obstacles, you can approach a financial team. These teams have the expertise and knowledge to ensure students can get their education loan within a specific time period and without hurdles. By following the right steps, you can get tour education loan sanctioned without two-three weeks of applying with a government bank.
Education Loan For Hotel Management Without Collateral
There are three types of institutions which offer an Education Loan for Hotel Management to Indian students without collateral. These include:
- Private Banks
- Non-Banking Finance Companies
- Nationalized Banks
Private banks and NBFCs are major lenders of student loans without any collateral. They provide these unsecured loans to students after carefully studying their profiles. The maximum amount that you can borrow depends on your candidate profile. However, take note that as there is an absence of collateral, most NBFCs charge a higher interest rate than government banks providing education loans for multiple management courses. Two factors that determine the processing fee are your co-applicant’s economic profile and your academic background.
Terms And Conditions For Government Bank Education Loans
If you intend on taking Education Loan for Hotel Management from a government bank, here are some terms and conditions to keep in mind:
- The interest rates that government banks charge for an education loan to hotel management students doesn’t go beyond 10%.
- The processing fee charged by government banks is fixed for abroad education loans. The amount is lower than the amount private banks and NBFCs charge.
- In India, the loan repayment tenure for government banks is of 15 years for education loans. This doesn’t include the course period of the candidate.
- There are many advantages of borrowing money from a government bank to finance your course in hotel management.
- If you want to know What documents required for education loan in India, you have to visit the website of the bank you’ve chosen.
How Early Do You Need To Apply For An Education Loan For Hospitality Management In 2024?
When should you apply for a student loan to be certain it’ll get sanctioned on time? According to experts, you should apply for your Education Loan for Hotel Management 1.5 months prior to time you will require the funds.
Ideally, it takes 18-20 days to fulfill every precondition to get the money transferred to your account. But sometimes the process can get delayed due to several reasons. So, to be on the safe side, apply at the earliest. You can visit the bank’s site and submit the application to get loan for your hospitality management course.
How To Apply For An Education Loan Of Hotel Management
In the age of digitalization, many government banks have simplified the process of loan application for students. As you applicant, you can easily apply for Education Loan for Hotel Management on an online platform. Every government bank has its secured digital platform through which you can submit your application for an education loan. As a first timer, the process might appear overwhelming, However, the guidelines are clearly stated on their official websites for your convenience.
The Procedure For Education Loan Repayment
For a typical education loan, the procedure for loan repayment is more or less the same. Most government banks grant borrowers a repayment period of 15 years. In addition, students can also avail a moratorium period which is payment-free. If you take your Education Loan for Hotel Management from an NBFC, you will have to repay the loan within 10 years. This time period doesn’t exclude the duration of the course.
An Emergency Loan For Hospitality Management Education
Many universities and colleges provide short-term loans to students for hotel management degrees. A short-term loan is something that assists students in meeting education-related economic obligations and this amount can’t be used for any unforeseen expense. This kind of loan can cover your tuition fees but not the hostel rent. When you are yet to finalize your payment arrangements and financial aid, you can select this option to get done with the registration process.
There is a processing fee linked with these loans. The good thing is that you won’t have to pay any interest if you repay the complete amount by the due date. Also remember that emergency loans or short-term loans are not available at all universities and colleges. Therefore, you have to get in touch with your institute’s Accounts department to determine your eligibility.
Steps To Follow To Get An Emergency Study Loan For Hotel Management Course in 2024
- First check the eligibility criteria to make sure you are a deserving candidate
- Learn about the loan’s repayment schedule as it varies from one institution to another
- Upload the necessary documents (as deemed right by your college)
- Wait for the transfer of funds to your active bank account
Are There Any Hidden Fees Associated With Student Loans?
Applying for a student loan is a safe process if you select a trustworthy private or government bank. You will know the rate of interest at the time of applying. During the process of application, you will get essential information about the administrative costs. The lender will clearly discuss the interest rate with you. Once you agree to the fees and terms, the lender will initiate the process. After that, you won’t have to worry about paying additional charges.
In conclusion, the hospitality and food industry has emerged as a competitive and illustrious field in recent times. With more talented individuals understanding its potential, universities in India and abroad are experiencing a rise in the number of enrolments for hospitality management courses. However, the funding for such courses tends to be on their higher side. So, a large number of hotel management candidates opt for education loans for financing their studies. And if you are on the lookout for a student loan, now you know everything about the dos and don’ts every borrower should follow. Hence, applying for Education Loan for Hotel Management and getting it sanctioned won’t be a hassle for you anymore.