Best education loan for abroad studies:all details covered
Best education loan for abroad studies
Studying abroad is a dream for many students, but the high costs involved can be a major obstacle. Fortunately, education loans offer a viable solution to finance your abroad education. Here we will explore the various aspects of education loans for studying abroad, including the procedure, benefits, disadvantages, and tips on how to negotiate effectively.
Procedure
To avail an education loan for studying abroad, you need to follow a step-by-step procedure.here we will have a look about eligibility criteria, required documents, loan application process and approval timeline.
• Eligibility criteria
It varies from banks to bank ,but in common it requires
(I) Proof of admission to a recognized university
(II) Academic qualifications
(III) Coapplicant who will act as guarantor
(IV) They May even ask for academic performance
(V) Financial stability of co applicant
Once yo fulfil all this criteria, some necessary documents will be demanded which includes
(I) Admission letter
(II) Mark sheets
(III) Income proof
(IV) Collateral documents (if required)
(V) Identity and adress proff
It is mandatory to ensure the all given documents are correct and up to date to avoid ant delay in loan approval. After this some forms will be given which you have to fill and submit.
NOTE: Some lender May also take an interview or personal interaction to assess students intent and dedication towards education.
After this lender will evaluate all documents and make decision on loan approval . Approval time can vary from few range to several months.
Why should I take loan for abroad studies
Taking an educational is beneficial in several ways
• Higher quality education
Studying abroad gives exposure to renowned universities and institutions , which offers excellent academic s and resources. This grooms the overall quality of education and increases your valuable knowledge and skills.
• Provides diverse learning experience
Studying in foreign country exposes you to different situations, cultures, perspective and teaching methods. This broaden yours thinking ability, intellectual understandings and helps In developing a global mindset.
• Networking opportunities
Studying in foreign helps you to build a global network of contacts with classmates, professors and professionals of your field of interest. These connections are valuable for your future collaborations,job opportunities and startups.
• Personal growth and Independence
Living in a foreign country challenges you to step out of your comfort zone and face real time difficulties. It makes you self reliant, improves problem solving attitude, adaptability and resilience.
• Improved career prospectus
A degree from a reputed college enhances your employability and opens door to better job opportunities across the globe. Employers values the international exposure, language proficiency and adaptability .
How to negotiate the best education loan
• Research multiple lenders
It is essential to check multiple lender and understand their policies before finalising a loan. Compare interst rates ,processing fees, terms and conditions, customer reviews to identify the lender that best suits your needs.
• Compare interest rates
Interest Rates are the most important determining factor of the loan. Compare the interest rate offered by different lenders , negotiate with them to get a lower interest rate based on your demand.
• Evaluate repayment options
Understand the repayment options . Look for flexibility in terms of repayment , grace period after graduation.negotiate with lender to set the repayment plan according to your financial capabilities.
• Leverage scholarships
Scholarships can significantly reduce the loan amount. Research and apply for scholarship specific to your field of study .when negotiate inform the lender about the scholarships you have been awarded and request a lower loan amount accordingly.
• Seek assistance for education loan
Consider seeking assistance from education loan consultants. They have expertise in this field and can guide you in taking the best possible loan terms.
Which banks and NBFCs provide education loan
Public sector banks
Canara bank
Union bank
Punjab national bank
Private banks
Axis bank
ICICI bank
IDFC bank
Karur Vysya bank
NBFCs
HDFC credila
Avanse
Common mistakes student do
While taking an education loan for studying abroad, students may make some common mistakes. These include:
1. Insufficient research
Failing to thoroughly research and compare different loan options can result in choosing a loan which does not fulfils your wish and with unfavorable terms or higher interest rates. It is important to go through multiple lenders and understand their offerings before making a decision.
2. Overborrowing
Some students may borrow more than they actually need, resulting in higher repayment burdens in the future. It is crucial to calculate the exact amount required for tuition fees, living expenses, visa cost ,flight charges and other related costs and borrow accordingly.
3. Ignoring repayment terms
sometime Students doesnt go through the repayment terms and conditions of the loan, including the interest rate, repayment period, and any associated fees. It is essential to understand these terms and ensure they are compatible with the student’s financial situation.
4. Not considering collateral requirements
Some students may not fully understand the collateral requirements for education loans. If collateral is needed, it is important to evaluate whether they have sufficient assets or guarantors to meet these requirements.
5. Neglecting eligibility criteria
Students should carefully review the eligibility criteria for education loans, including academic qualifications, admission to recognized institutions, and other specific requirements set by the lender. Failing to meet these criteria can lead to loan rejection.
6. Delaying application process
Students sometimes delay the loan application process, resulting in last-minute rush and potential delays in receiving funds. It is advisable to start the application process well in advance to allow sufficient time for document submission and loan approval.
7. Not seeking professional advice
Many students do not seek guidance from financial advisors or professionals who specialize in education loans. Seeking expert advice can help students understand the loan process better and make informed decisions.
Avoiding these common mistakes can help students secure the right education loan for studying abroad and ensure a smooth repayment journey.
Must do checklist
• Must avail benefit of income tax exemption on interest paid to bank over education loan
• Try to repay loan in 8 years as you can avail tax benefit only for 8 years
• If you are earning during graduation start repaying your loan from then onwards this will reduce burden of huge amount.
• Always take secure loan as this offers less interest rate. If you give Collateral ti bank bank will offer relatively lower interest rate. As the risk increases the interest rate also increases .
Some best colleges
For B.tech
(I) Massachusetts Institute of technology
(II) Stanford university
(III) university of Oxford
(IV) imperial college of London
For medical
(I)American university of Barbados
(II)Harvard medical school
(III)UCL
(IV)American university of Caribbean
(V)Washington university of Barbados school of medicine
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