Along with the increasing awareness about education there is increase in the costs of quality education is also growing fast. Parents too are ready to bear extra costs for the dreams of their children. But it is impossible to depend entirely on the savings and the sources of income to fund the higher education. Also going for traditional finances is not a wise decision as they are not so flexible about the repayment options and the interest rates. Educational loans for abroad studies and studies in mother country are given by banks and non-banking financial institutions at lower interest rates of 12.75 % with a nominal processing fee of 1-2 % of the loan amount. These loans are educational loans and particularly cover the cost of education, the costs of materials required to complete the course and the traveling expenses to certain extend.
But when a student is opting for an Overseas Education Loans he should also look for some part time job, or scholarships or grants given by the government. The scholarships and the income from the part time job will reduce the burden of the loan amount. The part time job will also help him manage his lifestyle and daily expenses in the other country. The student should also try leading a sedentary lifestyle. Educational loans for abroad studies also cover the accommodation charges in some case. As an education loan is a long term commitment you should go for suitable repayment option and the interest rate should not be much high. Nowadays you can get the required information easily by just visiting the website you can simply go to the website and fill in the required details , upload scanned copies of your required mark sheet and apply for the loan.
Checklist while applying for educational loan for abroad studies:
Whenever you take a study loan check the expenses covered by the bank or the NBFCs as it might differ from to bank. Always avail for a loan which covers maximum of your expenses including the coursefee, the exam fee, library fee, purchase of books, uniforms, caution deposits and traveling expenses. In case you have got a scholarship you can still apply for a loan to pay for the balance expenses.
Know the details of your loan as it is a long term commitment is aware of clear about your loan amount, the tenure of the repayment, the defined interest rate, the mode of repayment he has chosen. Whether, he has chosen for moratorium period, or repayment as soon as the loan is disbursed or EMI.
Some banks and financial institutions provide educational loan for part time studies, correspondence and online program too. This has really facilitated a lot for the students who avail for education loan for abroad studies and also work there for living.
While applying for an educational loan keep in mind you have the required documents handy like the student KYC, student’s educational documents, course fee details, co borrower’s documents, and collateral papers.