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‘Study Loan Abroad’ is becoming a popular search term on the internet. Many students with their eye on an overseas education consider these loans as the answer to their financial shortcomings. If you are also giving these loans a thought, this article help you get a more in depth perspective by highlighting some of the more important factors you should know about.
1. You have plenty of options!
This is the first thing you should know – many students apply with the bank their parents favor or lending institutes that they prefer. However, this could be a costly mistake. Often, the difference between an amazing loan offering and substandard financial solutions is simply a thorough comparison.
The best part is that there are numerous comparison sites out there too. They help make your life much easier by placing all your options side by side and comparing their specifications. One simple search for ‘study loan abroad’ and you should be able to find a number of these sites along with lender websites. This should give you enough fodder to mull over and make the right choices. One of which I can suggest is 'Auxilo Study Loan Abroad'.
2. Charges need a thought.
Every ‘study loan abroad’ will have a list of charges. How many charges are on this list and the extent of each charge will vary from one lender to the next. Among all these charges is the processing fee. Remember to give this charge a good amount of thought. Most lenders charge 1% of the loan amount for this fee, but some charge up to 2%. This charge is more important as it is non-refundable, meaning that you not see it being refunded, even if your application is rejected.
3. Application is easy.
You should know that applying for such a loan is extremely easy these days. Most lenders have start-to-finish online processes with some lenders even having apps. Some lenders might also provide you with doorstep service to collect and evaluate your documents. The best part is that you should expect same-day approvals on a Abroad Study Loan.
4. You’ll need a guarantor.
Considering that you’re a student and that you might not have an independent source of income or a good credit score, lenders will consider the financial strength & repayment capacity of your guarantor. Your guarantor can be anybody, preferably a blood relative, who is an Indian citizen above 18 years. They need to have a bank account with cheque writing facility & good credit score will be helpful.
5. No collaterals.
Most private non-banking finance companies will provide you loans up to 40 lakh without the need of collateral. However, most public sector banks might require you to provide some sort of collateral if your loan exceeds the 7 lakh mark.
6. Look for full coverage.
When looking for the right ‘study loan abroad’ remember to keep your eyes peeled for options that offer full coverage of all education-related expenses. This will ensure you never to worry about arranging funds whilst studying.
These were some important things you should be aware about if considering the options of an overseas loan. We hope this article helps you make the right borrowing choices and ensures you get a smooth journey through, and out of debt.
