Steps you can follow before applying for an education loan for abroad studies
Being able to apply at a university overseas to pursue higher education is a great opportunity. Although the cost of education has become significantly high, you can pursue your education by applying for an education loan for abroad without worrying about digging into your savings. An education loan provides financial assistance to students who are looking to pursue higher education either in India or abroad. In this article, we will talk about the steps you can follow before applying for an education loan.
1. Compare lenders online:
One of the most crucial steps to follow when applying for an education loan for abroad is to make sure that you compare different lenders online. There are various lenders and NBFCs in India that offer education loans. These lenders may have different terms regarding their loan policies. By comparing the lenders online you will have a better idea about the terms being offered to you. This way you will be able to opt for a lender that is best suited to your needs and fits all your requirements.
2.Check the interest rates:
Education loans are
specifically designed to cater to the needs of the students applying for the
loan. Lenders offer different interest rates on education loan for abroad which are comparatively lower than
personal or home loans. Depending on the lender you opt for, you will either be
offered a fixed or floating interest rate. You will need to repay the amount in
fixed monthly instalments in a fixed interest rate whereas in a floating
interest rate the amount varies over the life of the loan. Remember, your
interest rate has a direct impact on your EMIs, the higher the interest rate
the more EMI you may end up paying to repay your loan.
The first thing that comes to mind when thinking about a loan is the repayment process of the loan. It is very important to understand the repayment process before applying for an education loan for abroad. Lenders generally provide you with a 6-month holiday/moratorium period after the completion of the university course to those who have acquired an education loan. This holiday period is provided so that the students have enough time to start collecting the necessary funds in order to start the repayment process of the education loan. You can also make use of the EMI calculator to know the amount you will need to pay every month on your loan. Using this calculator will give you a better idea about your finances and you can manage your expenses accordingly.
4.Apply early:
When applying for an education loan for abroad, always remember to start applying early. Universities abroad generally have two intakes, one in September called the fall in-take and one in January called the spring in-take. Depending on the intake you opt for it is advisable to start the application process a few months in advance. This is because applying for an education loan is long and tedious process that can take up a lot of time. In case there is an issue with your application then you will have enough time to rectify the problem without having to make changes in your plan.
We hope this article has provided you with the information you were looking for.
Thank you!
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