A few reasons why students are opting for educational loans for studying abroad

Posted by rupesh on November 26th, 2018

Pursuing higher education from a premium institution has its own importance. It not only helps you to get ahead in life but also opens many doors in front of you. Although there are a lot of institutions in India; however, the educational institutions of abroad are in a league of their own. The students have understood this and many students are opting to complete their higher studies in abroad. But the cost of educational fees and other expenses that come along with this opportunity are out of reach for many students. Thus, a lot of meritorious students are unable to procure an educational degree from a reputable institution in a foreign country. However, thanks to the educational loans for studying abroad provided by banks and NBFCs, students can now study at an institute of their choice.

Why opt for an education loan for higher studies abroad?

An education loan will help you fund your own education. You won’t have to depend on anyone for financial assistance, as an education loan takes care of all the educational costs that you incur. The various costs covered by the educational loans are your college fees, tuition fees, travel expenses, cost of study material, living expenses, etc. They even cover the other miscellaneous costs that you incur while completing your educational course. The educational loan for studying abroad provided by banks and NBFCs (non-banking financial companies) are lower when compared with the ones given out by traditional financiers and loan sharks.

The various benefits of making use of an education loan for higher studies in a foreign country are as follows:

• There are a number of courses covered by the education loans. The different courses are in the fields of arts, science, commerce, economics, medicine, mass media, journalism, engineering, etc. Thus, you can choose the course you want to pursue and not the one which you are forced to.
• The repayments of these loans are done in the flexible form of EMIs (equated monthly installments). This helps you to plan out your repayments and ensure that you never default on any of them. The financial institutions have also started providing EMI calculators on their websites. Thus, you can now calculate your installments from your home or office- you need an internet connection and a suitable electronic device.
• The collateral required to avail educational loans for studying abroad depends on the principal amount and the primary debtor’s credit history. This collateral can be your residential apartment, life insurance policy, fixed deposit, non-agricultural land, etc.
• In order to ease your educational journey, financial institutions have also started providing additional services such as pre-visa disbursement, certificate of availability of funds, pre-admission loan, etc. Hence, you can simply make use of them and obtain an education of your choice.
• In the wake of the technological revolution, there are a lot of financial institutions which have taken the digital forefront. Thus, you can now avail an education loan from the comfort of your home. These services are available 24/7.

Hope this article helps you understand the importance of educational loans for studying abroad. Good luck and all the best!