You might need to take out an education loan to cover the rising expense of higher education if you want to attend a prominent institute in India or overseas. There are a lot of variables that will determine whether or not the application procedure for student loans will be simpler for you.
In this article, we will discuss some important advice that can make applying for an education loan easier for students studying abroad.
Table of contents
Select an Institute with a Good Reputation
The greater your chances of getting your school loan authorised, the more renowned the institution. This is because a prestigious institution is simpler for the lender to trust, and it will increase their faith in your capacity to repay the loan after you graduate from that institution.
Many students select a foreign university that is less expensive but less well-known or unheard-of. However, this can make applying for an education loan challenging, or the lender might demand valuable security or collateral in exchange for the loan.
If you’re still unclear, ask your bank or lender for a list of the colleges and programmes for which they can provide unique perks like lower lending rates or no collateral if you’re not sure.
Also Read: Education Loan Scheme by Narendra Modi
Maintain Good Credit
If you have a credit history, ensure it’s in good standing. A good credit score can help you qualify for lower interest rates and better loan terms. If necessary, work on improving your credit before applying for a loan.
Be Careful when Choosing a Lender
There are many loan choices available in India because of the expanding number of non-banking finance firms (NBFCs) and private lenders. Having said that, banks aren’t your sole choice for obtaining a loan for higher education.
You’ll have more opportunities and a higher chance of obtaining a loan if you try your luck with several lenders, such as banks, NBFCs, and other private businesses, both domestic and foreign (for study abroad).
Compare your alternatives when choosing a lender based on the interest rate, loan conditions, repayment time, and requirement for collateral, among other factors.
Also Read: What is the Student Loan Eligibility Criteria for Studying Abroad?
Check for Scholarships and Grants
Scholarships and grants are a valuable source of financial aid that doesn’t require repayment. Research and apply for as many scholarships and grants as possible to reduce your reliance on loans.
FAQs
To be eligible for a student loan, you must be a student eager to pursue an educational programme, whether in India or overseas. To demonstrate your eligibility, you will need to present specific documents, such as your KYC records, a letter of course approval, a fee schedule, your co-signer’s income documentation, etc.
Education loans offer lower interest rates, flexible repayment alternatives, and longer repayment terms than other loans because they are expressly created for higher education. Tax advantages and the absence of security or guarantors are two further features of education loans.
It is not necessary for students who apply for an education loan to make the payment right away; the payback period begins months or years after the course is finished. In extreme circumstances, it may even be increased from 5 to 7 years.
Securing an education loan requires careful planning and research. By understanding your options, meeting eligibility requirements, and making informed decisions, you can access the financial support you need to pursue your education while minimizing the burden of student debt. Remember to approach this process with diligence and responsibility to set yourself up for a successful educational and financial future.
To know more about the loan application process, and the best bank accounts for students or international money transfers, subscribe to Fly.Finance or reach out to our experts to help ease your study abroad experience.
