An education loan is a form of financing that helps students to take up study overseas. The choice of the foreign institute depends upon individual preference. Although there are multiple ways to take up loans, it is advisable to choose the right lender to get all this loan stuff sorted out.
Education loans are offered by banks, private lenders, and non-banking financial companies (NBFCs). Banks are primary lenders for education loans. But other lenders also offer loans depending on the eligibility criteria laid down by the regulators. The amount for this loan is usually based on the credit score of the applicant that is determined after proper documentation, proof of identity and other necessary documents.
A lot of students actually take up education loans for the prime purpose of having a peace of mind. Education loans usually have lower interest rates as compared to other loans.
But the better option would be to take the loan based on our StudyBuddy program. A unique program, designed by ForeignAdmits will not only help you in securing a loan faster but also help you in finding the most economical interest rate.
Does and Don’ts while taking an education loan
Do’s
Choose the right course before applying
You need to understand the prime thing to choose the right course before you apply for an education loan. In many cases, people take loans without proper knowledge of the product and pay for it later on. You should have a clear idea about the college or institute where you want to study. For example, there are institutes that even offer a direct admission to the students. So you can get a direct admission and a loan for that college without going through any hassle or confusion.
Borrow within one’s limits
Most of the students borrow loans without doing proper analysis and end up being in difficult situations. There are some cases where even parents take the responsibility of paying the loan for their children. It is essential that you should avoid such practices and make your own personal repayment plan, which you can even share with your parents.
Be aware of the interest rates
Different financial institutions offer education loans with different interest rates. It is essential that students should compare the interest rates of various banks and financial institutions before they apply for a loan. It will help them to choose the best possible deal.
Make your repayment plan
Once you are done with searching for the cheapest interest rate, you must make a repayment plan about how much money you can spend on a month basis. This will help you to put yourself away from unnecessary financial crisis.
Don’ts
Don’t expect a million dollar salary after graduating
Let us be frank in this. If you are expecting a million dollar salary immediately after graduating and it would take you like 3-4 months to pay back your loan, then it’s a mistake my friend. Even Stanford University can’t offer the salary that you want. And also it depends on many factors. Like you might take a loan from X bank and find a job in Y company then the salary will be totally different, though the work profile may remain similar.
So stop expecting that kind of salary because there is no basis for such calculation.
Don’t sign any documents without reading them
It has been seen that many people sign documents without reading them. It is essential to choose the financial institution that details you about the entire process without you having to break a sweat. A good institution will always provide you with an opportunity to read your document before signing it.
Don’t ride on emotions
Education loans are aimed at funding your higher education that will open the doors of opportunities for you when you wish to get back into the workforce. These loans help not only undergraduate students but also postgraduate students, doctoral students, or research scholars pursuing their studies in foreign countries.
Don’t fall for the wrong course
Do the course that you like. Don’t do it just for money. If you don’t like the course and think that it won’t benefit you, then don’t do it. There are other options too. Instead of landing up in a bad career out of sheer compulsion, choose something that suits your interest. Do not let anyone force you into anything because after all its your career decisions that will decide where you head to.
Benefits of taking out an education loan for overseas education
When it comes to overseas education, there are a lot of things you need to take care of. There is the school fee, living expenses for the first few months, cost of transport and more. Once all this has been taken care of, there are also many other expenditures that you need to be prepared for.
Here are some benefits that will encourage you to take out an education loan for overseas education.
Flexible repayment by choosing the tenure of the loan
You can repay the loan in flexible installments as per your convenience. You can even choose a tenure of repayment that you won’t find easy to manage within the time frame provided.
So if you think taking a seven-year loan will be difficult for repaying, you can take an education loan for five years and pay it back at your convenience. Also, you can refinance student loans if you want to.
Easy disbursal of loan through online mode
Education loans for overseas education are easily disbursal. This means that you do not need to go through all the rigmaroles of the loan sanctioning process. The whole application and disbursal process is done online so you don’t have to wait for a long time to get your loan approved.
No collateral required
You don’t need to pay a big sum as collateral to avail an education loan for overseas education. The banks and other financial companies which offer these loans do not require you to pledge any security against the loan. So, the point is that you need to find the right lending company that doesn’t require you to pay any collateral.
No worries of finding a guarantor
You can avail an education loan without a guarantor if you are financially sound. So, there is no need to worry about finding someone suitable as a guarantor who will vouch on your behalf with the lenders.
Loans at low interest rates
Many of the leading banks that offer education loans for overseas education provide their facilities at lower interest rates. At the end of the day, you need to know that education is something that is valued a lot in this world and that is why every government takes proper steps to provide good education loans to its students.
Loans approved with ease and fast disbursal
You can easily get your loans approved as per the eligibility criteria laid down by the educational institutes and financial institutions providing these loans. Also, you will find it easy to avail such loans as the loan approval process is quick.
Loan against property availed
You can avail education loans against property in order to finance your overseas education. Since you have assets, there are chances that you will get a higher loan amount than others who do not have any assets to pledge for repaying the loan.
Loans can be extended for higher education
Education loan scheme has been extended to those who are pursuing their master’s degree. This ensures that the students do not have any problem in repaying the loans once they are done with their studies. So, now you can avail education loan scheme for higher studies as well.
Loans against tax rebate
You can get an education loan for overseas education against a tax rebate that will result into availing higher loan amounts at a lower interest rate.
Loans extended to those who are NRIs
No restriction of being Indian citizen is imposed on those who want education loans for overseas education. This means that you can even apply for such a loan as an NRI and avail it without any hassle. So, the fact here is that availing an education loan for overseas studies can be very easy with certain conditions applied.
Early repayment options available with education loans
If you are interested in availing an education loan for overseas studies, then the best way to go about it is by comparing various financial institutions. This will help you get the most suitable financial company that offers these loans at competitive interest rates and repayment options.
No worries about low credit score
Don’t worry if you have a low credit score. If you get into a great institute, then you should least be worried about a low credit score. Banks and other financial institutions that offer such loans for overseas education don’t check your credit score. So, just go ahead and apply for it without any hassles.
Priority sector lending scheme benefits
If you are taking a loan from a cooperative bank, you can get benefits under the priority sector lending scheme. This means that if you pay the education loan on time and submit all documentation properly, it would not be an issue to avail your education loan quickly.
Why you should give a shot at our StudyBuddy program?
We know how difficult it can be to apply for a student loan and get rejected constantly. But that is why StudyBuddy is here, right?
We have designed this flagship product with the prime purpose of making loan applications an easy go round process out there.
StudyBuddy ensures that your loans are approved as quickly as possible. At the same time, our interest rates are 0.5% lower than what other lenders charge. If you want to know more about this program and how it operates, then all you need to do is book a call with our counsellor by clicking on the below button.
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