Last Updated on September 5, 2024
Choosing an Education loan to finance foreign studies is as challenging as selecting a college and a course abroad. Often, parents, instead of doing due diligence on their own, over-rely on education counsellors and end up with a poor college or a course that doesn’t ensure a good job prospect. However, the knowledge of a study abroad consultant can often ensure a great university for the students.
Similarly, over-dependence on loan consultants may land parents in a disadvantageous situation. Education loans for studying abroad should always suit the need of a candidate and experts say that besides your pocket several other factors such as country, college, course and its duration, and rate of interest among others should be kept in mind before accepting an offer. So, here’re five things that experts advise them to keep in mind while going for an education loan.
Some More Information About Loans
Avoid collateralized loans if possible: Keeping immovable property such as a house, land, etc as collateral against a loan amount is quite risky for any parent even if the candidate has got admission to a much sought-after course in a top college. Experts say that sometimes some middle-class parents become overenthusiastic when their wards get admission to Ivy League institutions. They take loans keeping their houses as collateral which is not advisable at all. Thus, the best study abroad consultants in Delhi offer fruitful services for great relief.
“A collateralized loan puts pressure on the collateral holder, and in the case of a co-signer loan, there is a social obligation attached to the loan. In both cases, your parents’ house and credit could be on the line if things don’t work out”, Associate Director of corporate strategy at MPOWER Financing. This US-based fintech firm provides education loans to high-promise international students.
A fixed rate of interest is preferable over a floating one: Parents often find a floating or variable rate of interest attractive as it looks cheaper with low-interest rates. However, experts suggest otherwise. They say that in a current prevailing rising rate environment, variable rates may appear lower at first, but may rise over time based on economic factors. In addition, some lenders offer discounts that help reduce the net interest rate over the life of the loan.
A loan from a foreign country is better: Financial consultants say that availing loan from the country in which a candidate has got admitted makes more sense than the home country.
Enquire, and avail of the post-loan services of lenders: Many lenders, especially those in the country of origin offer several post-loan benefits such as free career support upon graduation immigration and visa support, and access to housing, and other products.
Make sure the lender covers expenses in addition to tuition fees: Apply for a long needs a lot of planning and preparation. Besides taking care of basic things such as eligibility criteria, understanding the loan terms, documents required for submission, and loan processing time, a parent must prepare, before applying for the loan, an annual budget. You can get the following criteria from the study abroad consultants in Delhi.
Choosing your bank: A number of banks offer educational loans for different courses in India and abroad. Choose a bank that will provide you with the best moratorium period, interest rate, and terms to pay back the loan. Also, make sure you have the option of repaying the loan early. It is advisable to select a bank that offers you the best loan terms rather than the most finance. Also, check if you are allowed to pay Equated Monthly Instalments (EMIs) in advance or make partial payments towards the loan. Learn about all the service charges that are applicable to your loan. Prepayments and part payments might carry a penalty.
Know your stuff: Whether you are planning to study in India or study abroad, you should know the details of your further studies and the loan for fees you have taken. If you are entering a foreign country, a VISA makes you eligible to enter but it is not an all-access pass. You could face interviews at the airport about your purpose and details of entering. You should be prepared to answer all questions relating to your course, institutions, professors, cost of the course, loan amount, repayment schedule, interest rates, and so on. You should also be aware of your personal details and your family details which include your date of birth, address, educational qualifications, employment, and so on.
Contact us at admissify.com for further details as we provide the best consultation for overseas education. Moreover, we are now serving you as the study abroad consultants Guwahati also. It is great news for the North-Eastern students.
Gaurav Kandari is a seasoned study abroad consultant with over 5 years of experience, specializing in guiding students to the UK, USA, Canada, and Australia. An avid traveler, he draws on his global adventures to enrich his consulting, providing invaluable insights to aspiring scholars.
