The best investment a person can make is to invest in knowledge. To succeed in your career, you will need to gain knowledge at a high-end university. However, it is unfortunate that studying in a reputed college tends to be quite an expensive experience. There are even more reasons why studying abroad is one of the most costly alternatives.
There are several ways in which education loans can aid students in achieving their dream of studying in one of the best universities globally, irrespective of their financial status. There has been a proliferation of banks and other lenders providing personal loan for study abroad to students in the last few years. These lenders offer various education loan schemes, but choosing the best one for you is a hard decision.
The maximum Loan limit for abroad study
A student can apply for an unsecured personal loan for study abroad of as much as INR 1.5 cr in education loans. For students to apply for loans to study abroad without collateral, they can borrow up to INR 45 lakhs as a study loan. Loan amounts are subject to change depending on the applicant and their co-applicants profile, the country, the course, etc.
Steps for applying for a personal personal loan for study abroad
Step-1: Check your personal loan eligibility criteria online
Step-2: Compare your loan options with expert advice from a loan counselor
Step-3: Apply for an online loan by selecting a lender
Step-4: Check out the customized personal loan for study abroad document checklist
Step-5: Send the required documents for your personal loan for study abroad application electronically or have the representative come to your home and pick them up.
Step-6: Make sure that the property and other legal aspects of the loan are evaluated
Step-7: The lender will send you a sanction letter after the education loan has been approved.
What are the Best Overseas Education Loans?
The right choice for students who wish to pay for their education overseas is to pursue a personal loan to study abroad to cover the costs. Financial institutions can finance even 100% of the price of a course depending on the amount and individual profile. However, there is a need to carefully analyze the following key aspects of the various loan options available to pick the best loan option that suits your needs and requirements.
Interest Rate
The impact of even a 1% increase in interest rates on personal loans for study abroad can be significant to the student’s financial situation. Considering the historical changes in a lender’s interest rate is also important.
Moratorium Period
A grace period is a period during the loan tenure when the borrower is exempt from making any repayments. Studying abroad without worrying about making repayments is probably the biggest advantage of cheap personal loans with moratorium periods.
Tax Rebate
Indian banks provide unique loans for foreign study purposes because the entire amount paid in interest is exempt from income tax.
Margin Money
The loan amount needs to be paid from your pocket, with the rest of the loan being paid by the bank. The bank will fund all your education expenses in the amount of the loan offered if it offers a 0% margin.
Hidden Fees
There are several hidden fees that your lender might charge you that, when they are accumulated, will cost you a considerable amount of money.
Forex Margin
There are some lenders out there that charge a conversion fee when approving an overseas education loan in INR and disbursing the loan in an overseas currency. The interest rate can rise as high as 1.5%, translating into Rs. 45,000 for a loan amount of Rs. 30 lakhs.
Credit Life Insurance cost
A few lenders insist that when applicants are applying for education loans, they take out credit life insurance so that the amount of their education loan is protected in the event of any unfortunate event. A higher premium amount ultimately means that the cost of the education loan will also increase, as the premium amount will be on the higher side.
Cross-Sell
Typically, it’s not unusual for lenders to cross-sell applicants what they are not familiar with, even when the applicant is not knowledgeable about “How to apply for a personal loan”. However, it is not mandatory on the applicant’s part.
Interest Rate in Different Currencies
Students often face the dilemma of deciding between a personal education loan for study abroad in USD with a lower interest rate and an equivalent amount in Indian rupees with a higher interest rate. The previous trend of rising interest rates for US dollar to Indian rupee conversions stated that it is intelligent to opt for the loan amount in Indian rupees even if higher interest rates may come.
