How to Choose the Right Education Loan for Abroad Study
How to Choose the Right Education Loan for Abroad Study
Table Of Contents
Most of the students dream of studying abroad as it offers myriad career opportunities and global exposure. However, the cost of education in foreign countries generally ranges on the higher side. An education loan for abroad is intended to help a student finance tuition, travel, and other living expenses.
This article can help students find the appropriate loan to study abroad.
Factors to Consider Before Choosing an Education Loan for Abroad
Loan Amount: Check the loan amount that can be availed of. Some lenders offer full coverage, while others provide only partial funding.
Expenses Covered: Some loans cover only tuition fees, while others include travel, accommodation, and additional expenses as well. Therefore, students should choose a loan that meets all their needs.
Interest Rate and Repayment Terms: Applicants can compare interest rates from different lenders to acquire affordable rates. A lower interest rate means students will pay less funds over time. Some loans have flexible repayment options. Students can also look for loans that offer a grace period after graduation before they start repaying.
Moratorium Period: The moratorium period is the time during which students don’t have to repay the loan. Most loan providers give students 6 months to 1 year after completing the course before repayment starts.
Loan Tenure and Eligibility Criteria: Loan tenure refers to the time given to repay the loan. A longer tenure means smaller monthly payments but may have higher interest rates. Students must check if they meet the eligibility criteria.
Prepayment and Foreclosure Charges: Some lenders allow early repayment without extra charges. Others may charge a prepayment penalty. Therefore, students should choose a loan with flexible repayment options.
Applying for an Education Loan for Abroad
Students can check and compare many lenders and their interest rates, loan amounts, and repayment terms. Furthermore, they can check eligibility and gather documents such as:
Admission letters,
KYC,
Income proof.
They can then apply offline or online by applying online or visiting the lender’s branch. The lender would then go through the application and documents, and once approved, the funds are sent to your university or given in stages.
Conclusion
Selecting an appropriate education provided by various lenders, such as Credila, can reduce the financial burden of an education loan. Students should consider various parameters such as interest rates, repayment terms, expenses covered, moratorium period, processing time, prepayment and foreclosure charges before applying for education loans. Planning properly would ensure a hassle-free studying abroad experience.
