Consider These When Applying for an Education Loan to Study Abroad

A student who wants to study abroad needs to understand the nuances of financial planning. It is crucial to ensure a successful academic journey. From checking the eligibility criteria to evaluating the interest rates, there's a lot to fund education successfully. Read on to know what to look for when applying for an abroad education loan:



Take a Look at the Eligibility Criteria

Every lender offering abroad education loan has set eligibility criteria that you must meet to qualify for a student loan. Ensure you have the following:

-A strong academic record demonstrating your potential.

-Evidence of your ability to repay the loan, such as a stable income or co-signer.

-Proof of acceptance from your chosen institution.

-Gather all necessary documents, including identification, address proof, and financial statements.

 

Check If They Take Forex Conversion Cost

Many loan providers can charge a forex conversion cost while offering an abroad education loan. It is a fee imposed when converting, for instance, USD to INR or vice versa. Look for a loan provider that does not charge a forex conversion cost to avoid spending more on the repayment of the loan amount.

 

Evaluate Interest Rates

Studying abroad is already an expensive affair for any student. Try applying for a student loan with pocket-friendly interest rates to make your repayment journey affordable. Many loan providers offer abroad education loans with interest rates starting as low as 10%. Students can easily avail lower interest rates by comparing lenders and choosing shorter loan tenure.

 

Examine the Loan Tenure

Checking the repayment tenure is an important aspect that students should not overlook while applying for an education loan. By opting for a short repayment tenure, one can save on the overall interest but have to pay slightly higher EMIs. On the other hand, longer tenures mean lower EMIs but higher interest amounts.

 

See What Expenses Are Covered

Choosing a loan provider that offers 100% financing on education loans abroad can be beneficial. The expenses can include tuition fees, accommodation costs, purchase of textbooks and other education-related expenses. When these expenses are covered, students can live their college life without the stress of their finances.

 

By keeping these things in mind, students will be able to choose a loan provider most suitable to their requirements.

Comments

Post a Comment

Popular posts from this blog

How International Exchange Rates Affect an Overseas Education Loan

Image
  Pursuing higher education in a foreign country is a dream for many Indian students. It not only gives you a chance to experience diverse cultures but also allows you to enter the world of endless opportunities in professional life. However, the large financial burden that foreign education comes with is among the major challenges. This is why many students turn to education loans for their studies abroad . It not only allows them to pay the hefty tuition fees but can also cover other expenses of living in a foreign country. Currently, a number of lending institutions are offering quick education loans for studying abroad  at low interest rate s. There are several factors that can affect an overseas education loan, and the international exchange rate is one of them. What is an International Exchange Rate? The international exchange rate can be defined as the value of one currency in relation to the value of another currency. Generally, these rates are floating and can in...
Read more

Student Loan Refinancing: Key Things to Consider

Image
Saving Money with Refinancing Many individuals take student loans to study abroad hurriedly. It does not give them ample time to weigh loan terms, interest rates, and repayment options with different lenders. As a result, they may get expensive education loans with higher interest rates. Student loan refinancing allows them to undo the hasty decision and get a better loan offer from a different lender. They can bag a great deal with lower interest rates.  Top Things to Consider for Student Loan Refinancing Check the Foreclosure Charges Many lenders have prepayment and foreclosure charges. Before refinancing a student loan, one must check the foreclosure fees or penalties charged by their existing lender. They must factor in this additional cost when looking for refinancing options.  Get Better Deal Maintaining a healthy credit score is vital for a better refinancing deal. Top institutions check the creditworthiness of individuals before giving them a loan offer. The best wa...
Read more

4 Key Factors to Consider in the Education Loan Search Process

Image
 Pursuing higher studies is important for having a prosperous future. However, a significant monetary investment is necessary to pursue a course at a reputed college or university. Hence, an increasing number of people today fund their higher education with a loan. Education loans or student loans allow an individual to pursue their desired higher education course at the educational institution of their choice. What exactly is an education loan? An education loan is a fund arrangement provided by banks and non-banking financial companies (NBFCs) for students to pursue their academic goals. Students can avail of this loan to finance their higher education. In addition to the tuition fees, the education loan amount can cover course materials, lab fees, living expenses and other associated costs. In the majority of cases, the repayment of education loans is deferred for the duration of the course. It starts once the student has completed the entire degree. Based on location, edu...
Read more