Looking for an overseas education loan can be challenging if you lack the knowledge about the key factors of borrowing. Therefore, this post will guide you in understanding how to get the perfect loan for your education.
Here are 7 tips to help you find the perfect loan and finish your education without any worries. Read on!
7 Tips to Get the Best Education Loan for Overseas Study
Studying abroad can be an experience of a lifetime, but the cost of it usually proves to be a hindrance. An education loan for overseas study can make it easier for you. With numerous lenders and schemes offering loans, it is important to make the right choices.
The following are seven tips that will assist you in getting the best study overseas loan:
Here are seven essential tips to help you secure the best study overseas loan:
- Start Early and Research Thoroughly
If you want to go abroad without, then you must start researching for your loan early. Most students wait to research for their loans only after their admission. However, pre-research helps you to understand the best and prepare documents accordingly. Learn about different banks, NBFCs, and other foreign lenders who provide loans to study abroad. Learn more about their interest rates, repayment period, moratorium period, processing charges, and more.
- Choose the Right Lender
Every lender will have different terms, and hence it’s extremely important to find the right lending partner. For example, Public banks generally have lower interest rates, whereas private banks or NBFCs could give quick processing and flexible terms. You can also go for an international lender, especially if you have been accepted to an IVY League institution. However, always opt for a lender that best suits your course, country, and financial profile.
- Check Eligibility Criteria and Loan Coverage
Before you start to apply, please ensure that you have satisfied your lender’s eligibility criteria. These criteria include academic performance, admission to an approved foreign university, and a co-borrower. Before you settle with a particular lender, check their overseas education loan criteria, and see how much their loan cover. Some loans are often sufficient for tuition fees, travel and living costs, insurance, etc, while others just cover tuition fees.
- Consider Collateral and Co-signer Requirements
Most lenders will offer you secured and unsecured loans. However, a secured study loan for international involves collateral like property or fixed deposits and typically has lower interest rates. Whereas, an unsecured loan will only involve a co-signer and a good credit score. Select according to your financial ability and risk tolerance.
- Pay Attention to Interest Rates and Repayment Terms
Understand deeply about fixed and floating rates. Some lenders will provide you with a moratorium period during which you don’t have to start the repayment procedure. Therefore, learn more about your EMI structure and repayment facilities. Make use of the EMI calculators provided to you by your vendor or lender to check the repayment structure. And always remember that loans with low interest and flexible terms are the best loans to study overseas.
- Look for Government Schemes and Subsidies
Government sponsorships are a great option to accumulate money for your foreign education. Some countries have bilateral education loan support arrangements, too. This will help you to deal with one borrower, with simpler loan terms. Inquire from your selected lender whether such schemes can be used with your study overseas loan.
- Read the Fine Print Carefully
Before entering the loan agreement, read through all the terms and conditions. Consider hidden charges, penalties for late payment, and forex fluctuation provisions. It’s important to know your rights and obligations when borrowing money to pursue studies abroad.
Author Bio: Shatavisha Chatterjee is a loan advisor and a content creator for Student Cover. Till now, she has assisted thousands of students to find the perfect loan for themselves and study abroad. Apart from this, Shatavisha likes to read books, try new cuisine, and cafe-hop.
Conclusion
Follow these tips before applying for an overseas education loan, and never fail to get the best deal for yourself. Learn about the process carefully and start applying for an education loan. ASAP.
