Loan Related Terms: Every Student Should Know!

Loan-Related Terms That Every Student Should Know!

Are you a student considering taking out a loan to help finance your education? Before you start the loan process, it is important to become familiar with some loan-related terms that are commonly used. Understanding these terms can help you make the best decision for your financial situation. In this blog, we will discuss loan related terms that every student should know. We will cover topics such as loan types, repayment plans, interest rates, and loan forgiveness. Keep Reading to know more!

It’s important to understand the Loan related terms associated with education loans so that you can make the best decisions when it comes to taking out and managing a loan. Here is a list of some of the key loan related terms that you should be familiar with. 

Annual Percentage Rates 

Annual percentage rate (APR) is among the most essential loan related terms that you must know before opting for an education loan. APR is basically termed as the annual rate charged for borrowing a loan, it is expressed as a percentage that represents the principal cost of funds over the term of the loan. This may include fees or additional costs associated with the transaction. It can be beneficial for you to compare the cost of borrowing from other loan lenders. 

Interest 

Interest is the cost of borrowing money, and the rate of interest you pay is based on the amount of money you borrow and the length of the loan. When you take out a loan, you will pay interest over the life of the loan, and it is important to understand how interest works when you are considering taking out a loan.

Principal Balance 

The principal balance is the amount of money that you borrowed when you took out the loan. This does not include any interest or other fees that you may have paid on top of the principal. It is important to understand the principal balance of your loan as it will help you understand how much money you still owe.

Origination Fee

An origination fee is a fee charged by a lender for processing a loan. The origination fee may be a percentage of the loan amount or a flat fee. It is important to understand the origination fee when you are considering taking out a loan, as it can help you compare the cost of borrowing from different lenders.

Repayment Term 

The repayment term is the length of time that you have to repay the loan. This is typically based on the amount of money you borrowed and the interest rate. It is important to understand the repayment term when you are considering taking out a loan, as it can help you compare the cost of borrowing from different lenders.

Capitalization 

Capitalization is the process of adding unpaid interest to the principal balance of a loan. This can happen when interest payments are not made on time or when a loan is refinanced. It is important to understand capitalization when you are considering taking out a loan, as it can increase your total loan balance.

In-School Payment Method 

In-school payment method is a type of loan repayment plan that allows borrowers to make payments while they are still in school. This can be a great option for borrowers who are still in school and need to manage their debt. It is important to understand the in-school payment method when you are considering taking out a loan, as it can help you manage your debt while still in school.

Cosigner

A cosigner is someone who agrees to be held responsible for a loan if the borrower defaults. A cosigner may be necessary if the borrower does not have a good credit score or if the loan amount is large. It is important to understand the cosigner when you are considering taking out a loan, as it can help you qualify for a loan when you otherwise may not.

Loan Servicer

A loan servicer is a company that is responsible for managing a loan after it has been issued. The loan servicer is responsible for collecting payments, managing the loan balance, and helping borrowers with any questions or issues related to the loan. It is important to understand the loan servicer when you are considering taking out a loan, as it can help you manage your loan.

Student Loan Eligibility Requirements 

Student loan eligibility requirements for Indian students vary greatly depending on the type of loan, the lender, and the student’s individual circumstances. 

  • Generally, Indian students must meet certain income criteria in order to qualify for a student loan.
  • You must have a good academic record, a stable source of income, and a valid Indian ID card. 
  • Additionally, you must show that you will be able to repay the loan and that you have a good credit history.
  • Income criteria for Indian students vary depending on the type of loan and the lender. Generally, students must earn at least a minimum salary to qualify. For example, some lenders require students to make a minimum of $30,000 a year. Other lenders may require students to have a minimum of three years of work experience.

Check out Education loan related blogs important for students to know:

4 Steps Of The Loan Origination ProcessAmerican Express Forex Card
Axis Bank Education LoanBank Of America International Transfer
Bank Of Maharashtra Vidya Lakshmi Education LoanBank Of Scotland International Money Transfer
Bba Education Loan AbroadBenefits Of Wire Transfer
Best Student Loan AppBml International Transfer
Best Time To Apply For Education Loan RefinanceCapital One International Wire Transfer Vs Pnc Bank International Wire Transfer
Best Way To Pay Off Student LoansCheapest Forex Card For Students
Canara Bank Education Loan Disbursement ProcessCurrency Exchange Strategies For Studying In Expensive Destination
Canara Bank Education LoanDifference Between Iban And Swift Code
Canara Bank Vidya Lakshmi Education LoanFaqs On Foreign Outward Remittance
Collateral Free Education Loan Refinancing Via Fly FinanceFaqs On Forex Prepaid Cards For Students
Collateral SecurityForex Card How To Check Hdfc Forex Card Balance
Comparing Top Up Education Loans From Different Banks In IndiaForex Scams
Difference Between Loan Sanction Letter And Loan Capability CertificateHNB International Money Transfer
Demystifying Education Loan Refinancing For Indian StudentsHow Much Cash You Can Carry Abroad Legally
Documents Required For Education Loan RefinancingHow To Transfer Money To A Foreign University
Early Repayment Charge Of Education LoanHow To Transfer Money To Gic Account
Education Loan Disbursement ProcessHSBC Global International Money Transfer
Education Loan For AustraliaHuntington Bank International Wire Transfer
Education Loan For Diploma Course AbroadIng International Transfer
Education Loan For IrelandInternational Money Transfer Companies
Education Loan For Mba Without CollateralK Bank International Money Transfer
Education Loan MisconceptionsLondon Currency Exchange
Education Loan Payback TimeOtp Bank International Money Transfer
Education Loan Rejection With High Credit ScoreRbl Bank Forex Card
Education Loan Sanction LetterRevolut International Transfer
Education Loan Transfer To The Sbi BankRole Of Central Banks In Foreign Exchange Markets
Education Loans In West BengalSend Money Abroad From India
Eligibility Criteria For Loan Capability CertificateSeven Bank International Money Transfer
Faqs On Collateral Free Education LoansSwift Vs Sepa Transfer
Faqs On Education Loan RestructureTcf Bank International Wire Transfer
Faqs On Restructuring Scheme Of RbiTrack International Wire Transfer
Faqs On Secured Education LoanTransferring Money Internationally Between Banks
Financial Literacy For College StudentsUs Bank International Wire Transfer
Fly Finance Emi CalculatorWestern Union International Transfer
Get A Low Interest Rate Unsecured Education Loan For Masters In UsaWhat Is The Best Way To Send Money Internationally
Hdfc Bank Remittance ServicesAp Ambedkar Overseas Vidya Nidhi Scholarship
Hidden Charges Of Education LoansBest International Scholarships To Study In Us
How To Apply For Education Loan Through Vidya Lakshmi PortalCanadian Government Scholarships For International Students
How To Download The Application Form From The Vidya Lakshmi PortalHow To Prepare For International Scholarships
How To Fund Your Education AbroadLgbtq Scholarships
How To Get An Education LoanNon Government Scholarships In Canada
How To Obtain Solvency CertificateTop International Scholarships To Study In Ireland
How To Repay Your Student Loan In CanadaBenefits Of DBS Bank Credit Card For International Students
Iba Model Education Loan SchemeBest Student Bank Account
Impact Of Loan Restructure On Credit ScoreBusting Some Myths Around Gic Remittance Canada
Indian Banks Providing Education Loans To Study In CanadaCanara Bank Junior Account
Indusind Bank Education LoanChase International Student Account
Inflation And Its Effects On Education LoansCibc International Student Account
Issues After Education Loan SanctionDebit Cards
Jito Education LoanHalifax Current Account
Laxmi Vilas Bank Education LoanHsbc International Student Account
Loan Related TermsInternational Bank Account
Maybank Education Loan SingaporeLloyds International Student Account In The Uk
Minimum Family Income Requirements For Education LoanSt George Bank Australia
Minority Loan For Abroad StudyWhat Do You Need To Open A Bank Account
Nainital Bank Education Loan For AbroadCheapest Courses For International Students In Canada
Parent Plus LoanHow To Identify Counterfeit 100 Dollar Bill
Prodigy Finance Education LoanHow To Manage Money In Us
Property Accepted As Collateral Security For Education LoanHow To Pay Your University Fees By Working 20 Hours Week
Punjab And Sind Bank Education Loan For Study AbroadHow To Spot A Counterfeit 10 Dollar Bill
Rbi Ombudsman SchemeTips To Consider When Exchanging Currency In London
Refinance Student LoansWays To Fund An Overseas Education
Regalia Hdfc Forex CardWhat To Do With Counterfeit Currency
Sbi Education Loan Processing TimeTips To Avoid Education Loan Rejection
Sbi Student Loan Scheme Vs Sbi Global Ed Vantage SchemeUnion Bank Education Loan Disbursement Process
Strategies To Deal With Education Loans And InflationUniversity Change After Loan Sanction
Student Loan DebtVidya Lakshmi Education Loan Federal Bank
Student Loan For New ZealandVidya Lakshmi Education Loan Punjab And Sind Bank
Student Loan ForgivenessVidya Lakshmi Portal Central Bank Of India
Student Loan In SingaporeVidya Lakshmi Portal Documents Required
Student Loan MistakesVidya Lakshmi Portal Indian Overseas Bank
Student Loan Requirements To Study In CanadaVidya Lakshmi Portal Karur Vysya Bank
Student Loan Requirements To Study In The UsaVidya Lakshmi Portal South Indian Bank
Student Loan Requirements UkVidya Laxmi Portal Punjab National Bank
Student Loan Vs Financial AidWhat Is Bank Solvency Certificate
Student Loans For Studying AbroadWhat Is Loan Amortization
Tax Exemption From An Education LoanAch International Money Transfer
The Best Education Loan In IndiaAl Rajhi International Transfer

Documents Required

In addition to learning about loan related terms, you are also required to know more about the documents required. When applying for a student loan, you will need to provide certain documents to verify your identity and your eligibility. 

  • This typically includes a valid government-issued photo ID, such as a driver’s license or passport, 
  • Proof of enrollment in an eligible college or university. 
  • Proof of financial need, such as income tax returns or bank statements.
  • Transcripts,
  • Test scores,
  • letters of recommendation.

It is important to read the loan application carefully and submit all of the required documents in a timely manner to avoid delays in the loan process.

FAQs

How do I know if I am eligible for a student loan?

The eligibility requirements for student loans vary from lender to lender. Generally, you must have a good credit score, a stable income, and no outstanding loans. It is best to contact the lender directly to learn more about their specific requirements.

How do I know what interest rate I will get on my student loan?

The interest rate you receive on your student loan will depend on several factors, including your credit score, the type of loan, and the lender you choose. It is best to compare different lenders to find the lowest interest rate possible.

How long do I have to repay my student loan?

The repayment term for student loans varies from lender to lender. Generally, most lenders offer repayment terms of up to 10 years. It is important to review the terms of your loan before signing any documents to ensure you understand the repayment timeline.

To explore other international student account options, stayn in tune with Fly Finance. For all queries related to study abroad finances, connect us at 1800 572 126.

About Team Leverage Edu

Leave a Comment

3 Best Student Bank Accounts to Open when Studying Abroad ICICI Bank Education Loan to Study Abroad Baroda Yoddha Education Loan to Study Abroad Top 5 Benefits of SBI Zero Balance Account for Students Eligibility Criteria for Aditya Birla Capital Education Loan to Study Abroad Auxilo Education Loan for Army Brats: Loan Details and Interest Rates Steps Involved In Canara Bank Education Loan Processing Time IBDI Education Loan Documents Required Checklist Education Loan Interest Rate Comparisons: Banks vs. NBFCs Indian Army Education Loan to Study Abroad: Know It All Here
×

Send Money Abroad in <15 mins

×

Request a callback

×

Get an education loan at the lowest interest rate

×

Thank you! Your call request has been submitted

Our team will connect with your shortly

aero Confused which education loan is the best for you?