Law$School$Applications:$Getting$an$educational$loan$ $ With$the$annual$fees$at$a$National$Law$University$(NLU)$hovering$near$the$lakh$ and$a$half$mark$(Rs.$1,64,539/P$per$year$to$precise),$an$NLU$education$is$a$fairly$ expensive$endeavor.$With$the$addition$of$living$expenses,$the$total$cost$of$a$fiveP year$law$course$can$easily$touch$Rs.$9$lakh.$Thus$it$is$not$unusual$for$prospective$ law$students$to$opt$for$financial$aid$in$the$form$of$bank$loans.$ $ Keeping$this$in$mind,$Bar$&$Bench$brings$to$you$a$short$report$that,$we$hope,$will$ help$in$clearing$some$of$the$doubts$prospective$law$students$face.$We$have$also$ included$details$on$the$fees$charged$by$each$school,$as$well$as$a$handy$table$that$ readers$can$print$and$take$to$the$various$banks.

$ $ Please$note$that$the$following$content$is$ not$meant$to$replicate$financial$advice$ available$ from$ banks;$ readers$ are$ advised$ to$ approach$ individual$ banks$ for$ detailed$information.$$ $ 1.$How$much$money$do$you$need?$ $ The$ average$ fees$ are$ about$ Rs.$ 1.6$ lakh.$ (Refer$ table$ for$ fees$ of$ each$ CLAT$ school).$ So,$ if$ you$ are$ relying$ entirely$ on$ the$ loan,$ you$ are$ looking$ at$ a$ loan$ amount$ of$ Rs.$ 8$ lakh$ minimum.$ Plus$ personal$ expenses,$ say$ around$ Rs.4,000$ a$ month$which,$at$roughly$ten$months$a$year,$would$mean$an$additional$Rs.$2$lakh$ over$the$course$of$five$years.$$ $ CLAT$Law$Schools$&$Fee$Structure$ (Arranged$in$decreasing$fee$amount)$ $ $ Law$School$ Annual$Fees*$for$1st$ year$(INR)$ 1.$ NUSRL,$Ranchi$ 2,42,000/P$1$ 2.$ NALSAR,$Hyderabad$ 2,25,000/P$ 3.$ WBNUJS,$Kolkata$ 2,14,000/P$ 4.$ NLIU,$Bhopal$ 2,05,600/P$ 5.$ RGNUL,$Patiala$ 1,77,900/P2$ 6.$ NLSIU,$Bangalore$ 1,72,700/P$ 7.$ NLUJ,$Jodhpur$ 1,72,000/P2$ 8.$ CNLU,$Patna$ 1,65,000/P2$ 9.$ HNLU,$Raipur$ 1,60,000/P$ $ NLUO,$Cuttack$ 1,60,000/P$2$ $ GNLU,$Gandhinagar$ 1,60,000/P$ 10.$ NLSJA,$Guwahati$ 1,56,000/P$ 11.$ NUALS,$Cochin$ 1,19,350/P$ 12.$ RMLNLU,$Lucknow$ 74,000/P$3$
$ $ $ $ *Source:$ CLAT$ brochures.$ Includes$ refundanble$ $
deposits$$ 1$Fees$drops$to$Rs.$2,02,000$for$the$2nd$year$ 2$Mess$Charges$extra$ 3$Brochures$says$a$revision$is$being$considered$$

Law$School$Applications:$Getting$an$Educational$Loan$ $Bar$&$Bench$www.barandbench.com$$ $

$ $ Ideally$ though,$ try$ to$ keep$ the$ loan$ amount$ as$ small$ as$ possible.$ Larger$ loans$ come$with$their$own$set$of$requirements$like$collateral,$higher$EMIs$etc.$$ $ Also,$ do$ remember$ that$ loans$ have$ a$ margin$ ie$ a$ fixed$ percentage$ of$ the$ institutions$fees$that$ you$will$have$to$pay.$So$on$a$loan$of$say$Rs.$1$lakh,$with$a$ margin$of$4%,$you$will$have$to$pay$Rs.$4,000.$ $ 2.$Choosing$the$correct$bank.$$ $ Scout$ around.$ You$ can$ use$ sites$ such$ as$ ApnaPaisa$ to$ compare$ loan$ terms$ for$ different$ banks,$ but$ it$ is$ best$ to$ start$ with$ banks$ where$ your$ family$ members$ already$have$accounts.$$ $ Remember,$ Bank$ Managers$ enjoy$ some$ discretion$ in$ granting$ loans,$ so$ if$ your$ family$members$already$have$accounts$with$a$particular$bank,$getting$a$loan$is$ easier.$ Certain$ banks$ also$ have$ concessions$ for$ SC/ST$ students,$ while$ others$ offer$incentives$for$women$students.$ $ Also,$ the$ more$ well$ known$ the$ institute$ is,$ the$ easier$ it$ will$ be$ for$ a$ loan$ to$ be$ sanctioned.$Try$and$provide$as$much$information$as$possible$to$the$bank.$ $ 3.$Documents$and$collateral$ $ Depending$on$the$loan$amount,$along$with$the$standard$documents$(Age$proof,$ ID$proof$etc),$you$will$also$require$a$collateral$along$with$the$loan.$This$collateral$ may$be$in$the$form$of$immovable$property,$Fixed$Deposits$etc.$Generally,$loans$ below$Rs.4$lakh$do$not$require$this$collateral;$they$only$require$the$coPobligation$ of$your$parents.$$ $ Now$ security$ in$ the$ form$ of$ immovable$ property$ can$ come$ with$ its$ own$ set$ of$ costs,$for$instance$paying$the$Valuer$for$valuating$the$property$etc.$$ $ 4.$Loan$coverage$$ $ Usually,$ the$ loan$ amount$ covers$ tuition$ and$ hostel$ fees.$ Some$ banks$ also$ allow$ you$to$claim$funds$for$books/laptops$and$the$like.$Banks$may$also$require$you$to$ submit$a$copy$of$your$Pass$Certificate$at$the$end$of$each$academic$year.$ $ 5.$Repaying$the$loan$$ $ The$ tenure$ of$ a$ loan$ varies$ with$ each$ bank$ but$ generally$ it$ is$ about$ 7P8$ years.$ This$ period$ starts$ a$ year$ or$ so$ after$ graduation$ since$ all$ banks$ allow$ for$ a$ moratorium$ or$ a$ loan$ holiday$ where$ you$ can$ get$ a$ job,$ etc$ before$ you$ start$ repaying.$ $ However,$try$and$pay$off$the$interest$component$while$you$are$still$studying.$In$ fact,$ banks$ actually$ encourage$ this$ practice$ and$ will$ even$ reduce$ the$ rate$ of$ interest$if$you$are$regular$with$your$payments$during$your$law$course.$$ $
Law$School$Applications:$Getting$an$Educational$Loan$ $Bar$&$Bench$www.barandbench.com$$ $

Keep$ a$ lookout$ for$ prePpayment$ charges/penalties;$ some$ banks$ do$ impose$ an$ additional$cost$for$this.$Of$course,$you$can$also$negotiate$with$the$bank$to$waive$ this$penalty/charge.$ $ 6.$Penalties$for$nonRpayment$of$EMIs$$ $ Before$ taking$ the$ loan,$ ask$ the$ banks$ whether$ they$ impose$ any$ penalties$ on$ missing/irregular$ payments.$ If$ you$ foresee$ a$ situation$ arising$ where$ you$ are$ unable$to$repay$the$loan,$speak$to$the$bank$as$soon$as$you$can.$$ $ Also,$nonPrepayment$will$certainly$affect$your$credit$history$going$forward.$ $ 7.$Other$things$to$keep$in$mind.$ $ Just$because$you$have$taken$a$loan$of$say$Rs.$5$lakh,$does$not$mean$you$have$to$ avail$of$all$it.$Only$withdraw$as$much$as$you$need.$ $ Look$ out$ for$ scholarships,$ paid$ internships$ etc.$ There$ is$ a$ government$ scheme$ wherein$the$government$reimburses$you$for$the$interest$paid$during$the$course$ period$and$the$moratorium$as$well.$$ $ Other$ than$ that,$ plan$ things$ out.$ Make$ sure$ you$ set$ aside$ a$ fixed$ amount$ for$ personal$expenses$such$as$food,$stationery,$Xeroxing$class$notes$etc.$These$may$ seem$like$minor$expenses$but$over$the$course$of$five$years,$they$can$add$up$to$a$ substantial$figure.$$ $ Lastly,$there$is$no$need$to$take$the$decision$in$haste;$some$careful$planning$now$ will$help$you$for$years$to$come.$ $ $ $ $ $ $ $ $ $ $ $ $ There$is$a$Loan$Comparison$table$available$here$that$you$can$take$a$print$out$of$ and$take$with$you$when$you$visit$various$banks.$ $ Bar$&$Bench$would$like$to$thank$Mr.$S$Bose$and$Mr.$A$Bhansali$for$their$invaluable$ help$in$compiling$this$report.$ $

Law$School$Applications:$Getting$an$Educational$Loan$ $Bar$&$Bench$www.barandbench.com$$ $

Comparing"Loans" "
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" "Bar"&"Bench" www.barandbench.com" " "

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Interest! Loan!coverage! Tenure! Collateral/! Margin! Pre>payment! Moratorium! Contact!details/Comments! Rate! (Tuition/Hostel)! Security! charges! Period! " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " "