Everything You Wanted to Know About Education Loans for Studying Abroad
Education Loans for Studying Abroad
Studying abroad is a journey that demands a lot of financial investment.
Considering our weak currency, it is practically not possible for every student to procure the required amount of funds on his own or from his parents.
Does that mean you should give up your dream of studying in a foreign university?
In order to facilitate the study abroad journey of students, a scheme of education loan has been started by various banks and financial institutions across the country.
This should put rest to all your financial worries concerning your study abroad journey as your education loan promises to cover both your tuition fee as well as living expenses. That is, all your expenses related to your education are taken care of by such loans.
Things You Must Know:
- The foremost thing to know is that not all study abroad programs are eligible for financial assistance. Only the long-term programs that are to be pursued in a reputed university are eligible for education loans and not the ones that are of a short-duration or are vocational courses.
- Education loans are meant to be there to your rescue. There is nothing that should you worry you or stop you from applying for these loans.
- The government banks offer lower rates of interest as compared to private banks.
- Even if you succeed in nailing a dream scholarship, you should still consider applying for a loan as a scholarship is not going to cover all your expenses that are involved in studying abroad.
- You must apply for an education loan as soon as you get an offer letter from your study destination. This is possible only if you are through with your research work by this time. Compare and shortlist the best options depending on your needs and interests.
- The wisdom is to make an application to more than 1 one bank so as to keep multiple options in your hand.
- For a loan exceeding the amount of 5 lakhs INR, you need to have a cosigner. That is a person who signs the loan with you, thereby, agreeing to pay the debt in case you fail in doing the same.
- Scan the information carefully so as to not miss any important information. Gain a proper understanding of the rate of interest on your education loan. What you must know is that interest rate on education loans is floating that is it is subject to change (increase/ decrease) depending on future circumstances.
- For a loan whose amount exceeds 7.5 lakhs INR, you are required to submit documents of any of your immovable properties or LIC policy. You must, therefore, be mentally prepared for the same.
- Gain clarity on your holiday period (moratorium period) along with time frames during which you will have to pay your EMI’s.
- Checking with your university to see if it has any tie-ups with banks or financial institutions for education loans is an excellent idea of expediting the whole process.
Read Also: Things You Wanted to Know About Student Visa
Application Checklist (Education Loans):
Scroll down to find a list of things that you need to make a successful application for your education loan:
- Identity Proof
- Address Proof
- Signature Proof
Make sure you equip yourself with complete knowledge and gather all teeny weenie details. Finally, take your time and don’t hurry up the process or ignore any of the clauses mentioned in the agreement.
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