How To Get The Best Student Loans For Studying Abroad.

Posted by ketan on September 25th, 2019

Going abroad for higher education, a dream for many students continues to remain only a dream because they couldn’t afford best student loans for studying abroad. The fees of their dream institute are only one of the several expenses that they have to incur, and that too costs a bomb. Other expenses include expenses of travel, living and other miscellaneous items such as books, tuitions and computers (if required).

So, what is the solution?

Since it would be unfair for a meritorious and ambitious student to miss out on the chance of gaining the benefits of an education that has the potential to change his/her life for the better merely due to financial constraints, it is of utmost importance to find a solution for the same. The most efficient solution to this problem would be – student loans. Student loans are sums of money lent by banks and financial institutions to students to finance their education, subject to rates of interest.

What do the best student loans for studying abroad provide?

In India, the minimum education loan provided by financial institutions for foreign education is Rs. 1, 50,000 and the maximum is Rs. 1.5 crore, with a minimum interest rate of 9.7% and a maximum of 16.2%. These loans can be taken for a minimum of 1 year and a maximum of 10 years. The best education loans for studying abroad will also have lower additional charges, such as pre-payment, processing and documentation charges.

Am I eligible for an education to study abroad?

An oversea education loan is usually only provided for higher studies (undergraduate programs and above). To avail such a loan, the applicant should be an Indian citizen above the age of 18. He or she will also require a co-applicant and confirmed admission letter from the university.

Concessions for female applicants

Banks & non-banking finance companies believe that both men and women have the right to education and in fact, a few lenders even provide certain concessions to their female applicants. The best student loans for studying abroad will also have special interest rates for women applying for student loans. In most cases, females are even charged a 0.5% lower interest rate than men.

Borrowing overseas student loans from NBFCs

Loans for foreign education can be availed from NBFCs (non-banking financial companies). NBFCs usually provide loans that are more than Rs. 7.5 lakhs and too, without any collateral security. A collateral security, simply put, is an asset that needs to be deposited by the borrower with the lender and can be sold off if the borrower defaults on the loan payment. An example of a collateral security could be the title deeds of a house. Most banks will require that you provide a collateral if your loan amount is more than Rs. 7.5 lakhs.

How to apply?
It’s simple – just go online! Most lenders, especially NBFCs, will have a simple online application process. Just fill in some simple details and submit the application. The lender should get in touch with you and schedule a visit to complete all further steps and collect the required documents.

Hope this article has been helpful and helps you find the best student loans for studying abroad. Good luck!!