Want to avail student loan for studying abroad? Follow these 5 important tips

Quality education lays a strong foundation in an individual’s life. It lets him or her shape up the career, get well-paid jobs or start a successful business, get recognized in society and attain new zeniths in life. It leads to the overall progress of an individual, society, state, and nation. Parents always aspire to send their kids to prestigious universities in India or abroad. However, educational costs are getting skyrocketing high especially when you opt to study abroad. Many aspirants have to leave their dreams aside and opt for another career option once they check the huge sum being incurred on their dream course.

It seems a daunting task for parents to arrange such a huge sum who often have to gamble with their savings, future investments to see their kids settle in life. Although there are options like scholarships, aids, property mortgages or alternative subsidizations, however, it proves insufficient against the creeping costs. Property mortgages, personal loan or traditional finance come up with exorbitant interest rates and no flexible repayment options. One of the best ways to fund your higher education is to opt for a student loan for studying abroad. It's one of the most preferred options for millions of aspirants especially from middle-class section who wish to pursue higher studies in their dream university but cannot due to lack of right fund.

A student loan for studying abroad takes complete care of your tuition fee, exam fee, hostel and mess accommodation, lab and library fees, caution deposit, travel, books and equipment, projects, thesis work, and educational tours. There are leading private finance companies and banks who offer student loan for studying abroad with interest rates as low as 11-15% with a mere processing fee. There is a special concession of 0.5% for women applicant to empower them with their educational dreams.

However, the competition amongst the peer players is quite stiff and therefore it’s better to keep a few points in mind before one gets into the business to apply for an education loan:

Get a confirmation letter

Lenders will process your application if you have a confirmed admission letter in any of the top-notch university abroad. The time between getting a letter, entrance test preparation and submission of application could be spent on researching some of the pioneer players in the market, and how to save on the interest rates on study loans.

Do research and comparison

When you research on different loan options offered by leading private players or banks you can make an informed decision. You can understand the interest rate, loan disbursal value, EMIs, processing fee and then zero in on the best student loan for studying abroad. Adequate time must be given to comparing the loan products. Many lenders come up with customized loan solutions to study abroad such as Pre-Visa Disbursement Loan, Pre-Admission Loan, Certificate of Availability of Funds; GRE score based loan, Bridge loan, fast-track loan etc. Pick the one that fulfills your requirements and fits into your budget.

Eligibility criteria

The eligibility criteria differ slightly from one lender to another. However, the basics remain the same such as your age, academic history, borrower's credit history, country, course type, job or business prospects, university reputation and lastly the collateral's which you can offer. Most lenders offer loans for long-term education programmes like doctorate, engineering, management studies, architecture, aviation programmes. They won’t' grant loan for certain vocational courses and short-term programmes.

Documentation

Although, you can now make an application online, however, avoid getting into last moment hassles. Keep all the documents handy before you make an application online. Get a proper checklist done before visiting the lender's site. Ideally, they require photographs, photo ID, Address proof, academic records, Signature verification, Date of Birth Proof, Income proof of co-borrower & its credit report and collateral documents

Carefully choose the co-signer

Choosing a co-signer is also an important activity in your application task. A co-signer is usually a parent/guardian who would agree to clear your debt just in case you're unable to repay due to an unfortunate incident. Avanse Student loan for studying abroad with the amount 5 lakhs & above will require a co-signer and the ones above 7.5 lakhs will require collateral's as well.

Our Student Loan In India are designed to suit diverse needs of students who wish to pursue higher studies in India & abroad. We provide 100% education finance.