Even if you come from a modest financial background and want to pursue higher education abroad, your parents’ limited ability to pay back the loan won’t be a problem. Both the number of students enrolling in higher education abroad and the range of financial options have constantly expanded. However, due to the limited availability of education loan for abroad studies, not all applications will be accepted.
Here are a few benefits that student loans have:
- Affordable interest rates
- In accordance with Section 80E of the Income Tax Act of India, 1961, interest payments is tax deductible.
- approval in advance of admission being confirmed
- Maximum 100% financing
- Online application
- Door-to-door assistance
Students have the opportunity to pay for their post-high school education with the aid of education loan fir abroad studies for international education, both for courses in India and abroad. Along with covering tuition costs, a loan may also be used to pay for equipment purchases, hostel fees, and other course-related costs. Diverse educational loan providers take airfare into account when granting loans for study abroad.
How to choose education loan for abroad studies?
For students who want to attend a prestigious university but lack the funds, education loan for abroad studies are a vital part of their lives. Now that college loans are available, it is easier for parents to send their kids abroad for further study. Education loans have been a popular option due to longer moratoria, affordable interest rates, and flexible repayment arrangements.
Numerous financial institutions and banks in India offer financial aid to students pursuing higher education both domestically and abroad. However, the range of products and services offered by each lender varies. Some of the terms that differ from bank to bank include the processing charge, interest rate, repayment terms, moratorium period, payback duration, and tax advantages. Therefore, before choosing a certain loan provider, one should take into account the following factors.
Interest rate
When choosing any reputable institution or bank for an education loan, the interest rate is a crucial factor to take into account because even a small variation might result in cost savings. Choose the choice that is most cost-effective by understanding the difference between floating and fixed interest rates, and comparing the rates that various institutions and banks offer.
Costs covered
The overall sum disbursed is determined by a number of variables, including the standing of the university, the applicant’s academic background, any co-applicants, and others. While some banks pay the entire cost of schooling, others merely pay a portion of it. Make sure to ask your loan provider about the expenses that are covered. Lab fees, tuition, equipment costs, exam costs, library costs, and personal expenditures may all be reimbursed.
Documents and eligibility
Most banks and financial institutions have a set procedure for determining a borrower’s eligibility for an education loan. The application process includes questions on co-applicants, family income, co-applicant information, and creditworthiness. The type, of course, being taken and the likelihood of finding work once the program has been completed both affect the number of education loans that will be disbursed.
It is also advised to compile a list of the supporting papers required for a loan so that you can quickly acquire them. Various institutions and banks typically need copies of previous academic transcripts, address verification, co-applicant income verification, passport-size photographs, etc. While some institutions require a letter confirming admittance, others grant the loan without one.
Prepayment terms
The more interest on the principal amount you pay off early, the more money you will save. Find out if making a prepayment carries any penalty. As a result, a plan can be developed for finding employment to pay off the loan as quickly as possible.
Moratorium extension
Before prepayment begins, financial institutions and banks provide a moratorium of six to twelve months following course completion. Before repaying the education debt, students must have some time to find employment and achieve financial security. A period extension may be necessary for some circumstances due to unexpected financial demands and employment inaccessibility. Learn all there is to know about these fees and rules.
Total cost over EMI
EMIs are used to repay education loans, and they are dispersed evenly across the loan term. Some consumers select lengthier terms in order to reduce their monthly payments. Although it might be practical in the near run, the total cost of the loan will increase annually. Find a lender who makes your studies convenient and offers the greatest interest rate.
Loan processing time
When applying to a university overseas, the deadline is crucial. When applying for a visa and admission, the loan sanction letter is a requirement to have as a financial resource. Inquire about the processing time required by the lender for loan disbursement.
Service charge
When requesting an education loan, the loan amount and a few fees are also necessary. These include expenses for prepayment, loan processing, and extensions of moratoria. Before applying, inquire about all of these fees to avoid being surprised by them later.
Education loans are available from a variety of financial institutions and banks for higher education overseas, and each lender provides a unique range of advantages and services. It is advised to contrast and evaluate many items to discover the one that best meets your needs and specifications.
