Things to take care while taking overseas study loan

Priyanka was on the top of the world as her overseas study loan was approved. She was happy that her dream to pursue a top-notch course at a renowned university was coming true. All that stood between her and a promising career ahead was her last leg of education at the Foreign University. But the problem was funding the balloon costs of the last leg. So, she applied for an overseas study loan. Finally, she was able to fulfill her dream. In future she now has a great job, a salary that allows her to live comfortably and loan repayment concerns. Priyanka can’t do much but focus on loan repayments but learning from her we can surely avoid the mistakes.

So, let’s look at some of the mistakes that many students like Priyanka commit while taking overseas study loan:

Not Exploring

In their quest to get money to fulfill their dream studies, they don't consider the alternative they have in front of them. Don't fix on a college with extremely high tuition fee, look for a college that is equally good and have a lower fee. It would be no harm if you enroll there and your career requirements are met. If you can save a bit and still get a quality education then it would be a great deal.

Not research

The general tendency of an applicant is to hit the nearest branch of the first lender and apply for a loan and head home. But, why are you in so hurry? Instead find out what other lenders are offering you in terms of principal amount, interest rates, tuition fee cover, college fee, would you need a guarantor or provide security, when the loan gets disbursed, the repayment options and other important parameters. Once you thoroughly evaluate these points than zero in on a particular lender.

Borrowing more than required

The lender has a tendency of giving a loan amount that may exceed your requirements. For extra concern, you may opt to take more amount. However, be careful of this as the more you borrower more interest rate you will have to pay. Borrow exactly that you need. One of the biggest problems Priyanka is facing today is hefty interest rate because of more loan amount. At that time, she didn't give so much of thought and used to maintain lifestyle.

No Prepayments

As a student, we often don't want to take monetary responsibilities and never willing to explore the possibility of trying to repay early. It will actually help you reduce the interest outgo. The payment made during your time at the university or before you actual repayments starts don't attract penalty charges on your study loan. So, if you prepay consistently during this time, you'll reduce your interest amount and the total principal sum as well. Therefore, an expert suggests live a sedentary lifestyle and opts for a part-time job to clear the interest rates as much as possible.

Overseas study loan is the companion during rainy days of finances. It’s better to compare the loan of leading private finance companies and bank to make an informed choice.

An personal loan would be the first financial help for your family in your absence.