Overseas study loan - the best financial aid for higher studies

Posted by Shyamoli Shah on October 4th, 2016

Along with having higher quality standards, overseas education also has higher fees that are impossible to cope with the regular savings of Indian parents. Those who wish to go for higher education abroad should look for requisite sources to obtain financial assistance. With the help of the following article you can explore the various types of financial resources available for Indian students.Overseas study loan being one of the many sources of funding your foreign study program can be easily availed from a government bank or a private financier. Some of the leading private lenders offer interest rates as low as 12.75% with a processing fee of mere 1-2%. The borrower not just gets to enjoy lower rate of interest, but also flexible repayment modes and tenure.

Student loans

Education within the country is so expensive that going to study in a foreign country is just out of the question. However, with an education loan, you can take advantage of the opportunity without any capital at your disposal. All the necessary expenses should be mentioned along with the principal amount such as curriculum and stationery items, accommodation, transport, research expenses, etc. To avail a student loan, the borrower has to follow a certain eligibility criteria. Having a co-applicant is one of the criteria that needs to be fulfilled. The borrower’s parents, siblings, spouse, parent in lawsare the suitable candidates who can apply as co-applicants along with the student (primary borrower). The student should have a secure admission in a reputed college/university prior to applying for the loan. A collateral security or a guarantor is mandatory while availing any type of secured loans.

Scholarship programs

One of the best form of financial aid when it comes to studying abroad, a scholarship is free from any form of collateral or guarantor unlike an overseas study loan. Although, scholarship programs are available to only a few Indian students who meet the given eligibility criteria, they can be of great help in terms of fundings. International sponsorships are also available for students who wish to go abroad and continue their studies. Here are some of the common benefits of a scholarship:

• The student does not have to worry about the repayment. Infact, no repayment needs to be done.
• Scholarships are designed solely for the weaker section of the society that are economically backward and are insufficient to pay for their education. So anyone can get their hands on these scholarships to make the most out of their academic years.
• A scholarship could be the best source to cover all the expenses related to your overseas education other than the academic fees.

Sponsorship programs

Several international universities have sponsorship programs for students from different countries including India. These are extremely competitive. They are valued as they represent a significant achievement,but yet you should not consider them as the only option. The sole reason behind promoting sponsorship programs is to encourage international student applicants.

Educational grants

Under this category, a 100% financial assistance is provided to the student just like an overseas study loan. However, it is for the one’s belonging to certain sections of the society in order to increase their participation. Thus, educational grants are often targeted towards a specific section of the society.

Source: http://articles.org/overseas-study-loan-the-best-financial-aid-for-higher-studies/