The rising demand of abroad study loan

Posted by Shyamoli Shah on October 18th, 2016

An abroad study loan is a type of loan that is provided to students with a scarcity of financial resources who wish to pursue their higher education in a different country other than India.The prime reason why these loans are issued is to encourage education, be it within the country or outside the country. It works as a motivational tool for the young brigade of the nation who have to back off just due lack of finances. Higher education is costlier as compared to basic education, thus it cannot be afforded by each and every student. Once you get your hands on a loan, your financial problems for studying will be resolved. Higher education has a lot of significance and to pursue it a loan becomes mandatory. Availing a loan once will help you strengthen yourself in all the phases of life.

Advantages of an Study Loans For Abroad

  • It helps cover travel and accommodation expenses and expenses other than the academic fees
  • Tuition fees and library charges will be taken care of
  • Cost of equipment and uniform
  • Cost of stationery, other related apparatus
  • Expenses of study tours and trips
  • Different projects and coursework can be covered with the help of a loan
  • If any medical charges occur during the time of the course, they can be covered by the loan amount

Not just an education loan but any type of loan is divided into two types: secured and unsecured. Secured loans should be availed by those who require longer duration of time to repay the loan and are ready to vouch any form of collateral security to the lender in exchange of the loan. This makes it less risky for the lender.Unsecured loans,on the other hand, are usually a suitable option at the time of a medical emergency or when in dire need of money for any reason.Unsecured loans come with a very short repayment tenure, which is usually accompanied by a higher rate of interest.In a secured loan, the borrower pays a lesser rate of interest and is provided with a comparatively longer repayment tenure. Borrowers can opt for the alternative that is ideal for their requirements. Abroad study loan is also in two forms, secured and unsecured. Any kind of secured loan will require the borrower to guarantee a collateral security to the lender. A collateral security can be in any form of agreement documents, property papers, insurance policies, ornaments and jewellery, valuables, etc. The collateral that you are going to pledge should be specified in the application form without which a secured loan cannot get approved. There is a certain borrowing limited up to which a loan can be availed both for study in India as well as study abroad. However, this limit may vary from lender to lender and also depending on the type of loan to be availed. In deciding the loan amount factors such as the borrower’s (co-applicant’s in case of an education loan) monthly income, the course fees, other expenses related to the course are taken into consideration by the lending bodies. This helps them set a fixed amount and ensure that the borrower would be able to repay it.

Source: http://youknowitbaby.com/article/18977/the_rising_demand_of_abroad_study_loan.html

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Shyamoli Shah

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Shyamoli Shah
Joined: August 26th, 2016
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