Your aspirations and future opportunities depend on the education you receive. The more you study, the better it is. You require funds to pay for fees and accommodation during your studies. Hence, plan your finances responsibly while saving for the future. Several banks and lending institutions offer financial aid to aspiring students.
You require an Education Loan for abroad studies if you plan to go overseas to complete a course. Indian lenders use specific terms while referring to the loan, which you must know. They help you coordinate and understand the requirements better to get an affordable deal.
Co-borrower
A co-borrower is someone who signs your Study Loan with you to take responsibility for loan repayments. Since you are the primary loan borrower, you take your parent, spouse, or sibling as your co-borrower. Your loan lender gets the amount from your co-borrower if you are unable to pay it.
Collateral
Sometimes, your lender asks you to submit physical or financial assets as a security against the Education Loan abroad. You need to pay attention to the requirements and repayments to get your assets from the lender. In India, loan providers request collateral with a value significantly higher than the loan amount.
Fees
When you apply for Student Loan, you pay the lender some fees, including currency conversion fees, insurance and processing or admin fees. Enquire about the loan charges before finalising the deal with the lender. How and when lenders charge fees vary widely. Always understand the fee structure attached to your loan before signing the agreement.
Loan tenure
It is total time you get to repay the Study Loan for abroad, from the end of your grace period till your last payment. The longer the tenure, the lower is your interest rate. But that also means you need to pay more over the tenure. Look for lenders offering flexible terms to calculate a timeframe that works for you.
Pre-payment
Some lenders charge a pre-payment fee for early repayment of the foreign Education Loan. Using the Education Loan interest calculator, you calculate the loan instalment amount and interest due towards the end of the tenure. It is available on several lender websites for free and is accessible at all times.
Sanction letter
One of the documents you receive from your lender shows the loan amount to prove your university and the relevant immigration officials you can pay. This document is necessary to secure your spot or study visa.
Conclusion
It becomes easy to fund educational expenses by planning your budget and saving money to pay monthly instalments. It is essential to explore all options online and offline, including banks, lenders, and international lending institutions, to get the best scheme.