Education loan abroad - the best financial aid

Posted by Shyamoli Shah on November 18th, 2016

Education is essential to shape up the career of an individual. To educate their kids, a family has to have sufficient amount of financial assets. However, the rising living expenses leave us so empty at the end of the day, that there is nothing left with us to be saved for the future. This is a common problem faced by most of the aspiring students in India who belong to a middle class or lower middle class background. Often banks come to the rescue of these students by lending them a helping hand in the form of a loan. These loans can be availed not just for studying within the country, but to pursue education in a foreign country as well. An Education Loan For Abroad is specifically given for taking up higher studies in a different country. Unlike previous days, where government banks were the major sources of availing loans as they offered competitive interest rates and were considered to be very reliable, these days, even private financiers have emerged in the market who provide interest rates as low as 12.75%. The borrower might have to pay a processing fee of 1-2%.

Earlier, the number of lending bodies in the market was quite less due to which it used to be a daunting task for those seeking education loans. A lot of paperwork and legal formalities were involved, thereby making the entire process hectic and lengthier. Now-a-days, where loans can be availed with the help of online banking websites, they also cover additional expenses other then the college fees. Expenditures such as accommodation and travel charges, cost of books/laptop, tuition fees, library charges, etc. can be easily taken care of by the availed loan amount. The borrower also gets the flexibility of returning the sum after completing his/her course. In simple terms, the repayment tenure of the loan starts after the duration of your course. Some lenders also give a grace of 6-12 months after the course completion so that the student can secure a relevant job after finishing college/university.

There are various things such as the amount of money you wish to borrow, your family income, the source, i.e. government banks or private banks/institutes, etc. that one needs to consider before applying for an education loan abroad.The first thing that comes to the mind of a potential borrower is a government bank. Yet, it is advisable to look for some private lenders who offer features a lot similar to that offered by government banks. With a bit of an investigation over the internet or by visiting the lender in person, you can confirm their trustworthiness. Furthermore, you should also look for any hidden charges or processing fees.In order to avail the loan, the borrower has to fulfill the eligibility criteria such as:

  • The student should be a citizen of India
  • He/She should have a secure admission in the authorized university/college prior to applying for the loan
  • A co-applicant/co-borrower is a must for an education loan
  • Collateral assets such as property/ insurance policies/ FDs, valuables like ornaments/jewellery,etc. will be required for availing an education loan abroad.

Source: http://youknowitbaby.com/article/21399/education_loan_abroad_the_best_financial_aid.html


Shyamoli Shah

About the Author

Shyamoli Shah
Joined: August 26th, 2016
Articles Posted: 61

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