3 salient points to keep in mind while looking for an overseas study loan.

Studying abroad has many benefits; it looks good on your CV, it could provide you with a great job in a country with a stronger currency, it helps you become an independent person since you have to live alone and get so many things sorted without help your friends and family you’d otherwise depend on if you were studying in India.

It’s no wonder then that so many students aspire to cross borders and pursue their further studies in a foreign college or university. Unfortunately, most of these dreams meet a huge obstacle and that is the cost of an overseas education. And it’s not just the fees, but combine the living expenses, the cost of flying to that country, examination fees, poor currency exchange rates and you’ll find the expenses keep mounting to create an almost unscalable hurdle.

This is when an overseas study loan can lend a helping hand. Opting for such a loan will provide you with most of the finances you need to pursue that dream education. However, you will have a wide choice of financial offering and lenders which can become quite confusing considering the fact that it’s not every day you opt for an education loan. But to ease your decision making, this article will highlight 5 salient features to look out when choosing a lender and financial offerings.

1. Colleges, universities, courses and countries covered.

Most lenders will only provide you an overseas study loan if you’ve secured admission to a course in college or university they have covered. So if you’re comparing financial offerings, look for a lender that covers the maximum amount of colleges, universities, courses and countries. Some lenders cover as many as 860+ colleges, 1260+ universities, 1600+ courses in 30+ countries. Opting for such a lender would allow you to cast a wider net when applying for admission.

2. An overseas study loan with better funding options.

Since it’s only the fees you need to get covered, you should look for lenders that provide funds to cover the cost of a visa, preparation classes such as GRE/GMAT/SAT and other educated related expenses, as well as funds to cover the certificate of availability of funds. It’s also a smart tip to look for a lender that will provide you a fast track loan so as to speed up your admission process and score-based benefits.

3. Charges of an overseas study loan.

Most students online compare the interest rates of the study loan, and though this is one of the most significant charges of the loan, it’s not the only one. In fact, on applying you will have to pay a processing charge that pays for the cost to evaluate your paperwork and loan worthiness. This charge differs from one to lender to the next and can be as much as 1 or 2 percent of the loan amount.

Other charges you might have to face once the repayment process starts are things like prepayment charges, late payment charges, cheque bounce charges, etc. Again, the extent of these charges is bound to differ from one lender to the next so it’s wise to compare before choosing one.

Remember to look out for these salient pointers when comparing overseas study loans; it will ensure you make an informed decision, and importantly, the right decision. Good luck and study hard!

Hi this is rajshri yadav working as a senior finance advisor