Some common myths about education loans

Education is an integral part of individual's life. It helps individual to attain good position and success in life. However, due to the escalating education costs, it has become very difficult for parents to finance their kid's educational dreams. Often, they have to compromise on their career opportunities and then struggle in life ahead. Thanks to education loans offered by leading banks and private finance companies that ensure you don't fall short of money at any given point of time throughout your educational career.

However, in spite of education loan being a fairly well-versed concept there are some common myths associated with it:

Let's clear the cloud over the student loans in India:

I have poor grades; I won't get an education loan.

Most average learning students feel since their scores are not top-notch they can't go to reputed university and their career at stake. They just leave the hope of financing the education dreams. However, as long as you have someone to stand guarantee for your loan and you get a confirmed admission, lenders especially private finance companies are willing to fund your higher studies whether in India or abroad.

I topped to class; I don't need to secure a loan

You may have topped the class, must be popular in college, secured a scholarship as well. But it won't guarantee that it will finance your entire higher studies. Education costs are rising at an extremely high inflation rate and it's more or less impossible to finance studies that range anything between 5 to 50 lakhs. And if at all your scholarship falls short you may have to refinance your studies by borrowing from friends, family or traditional finance.

Study abroad is expensive I can't afford

Education costs are rising in steeply, In fact, even the riches of the society have to think twice to send their kids abroad. It's natural for average middle and upper-middle-class people it’s a herculean task. However, relax leading private finance companies and banks are willing to finance your dreams to study abroad and at lower interest rate costs. You can plan your tuition and living costs accordingly and apply to an institute.

I don't have margin money; I would be able to qualify for education loans

While it’s a mandate that most banks do demand margin money costs to sanction the remaining loan amount, there are firms that are ready to give 100% education finance. They are willing to cover your tuition fees, living expenses, hotel and mess fee, study material costs, exam fees, and travel costs. Thus, with such companies, your education dreams will be always within your reach.

Just like any other form of a loan, education loans are also evaluated on lot of parameters like student's academic score, parent/guardian credit score, country, university/institute, course, job or business prospects, etc. After a thorough evaluation, they will sanction a particular loan amount and also an attractive interest rate for you. Thanks to the advent of the internet you can now apply for education loans online right from the cozy corners of your homes or colleges. You can compare interest rate of leading providers, loan terms and conditions, policies and other features. You can make an online application and submit a scanned copy of the documentation. Within a day or two, you will get the loan status.

Overseas study loan: An easy way to fund your higher studies

Today, more and more children are willing to pursue best of the education, and therefore the number of students embarking on their journey to overseas studies is increasing exponentially. With the growth of the internet-based services and leading private finance companies having tie-ups with top-notch universities acquiring an admission in these institutes/universities are closer than never before. You can see students, visiting seminars venues and overseas education expos along with the friends, parents or relatives to find a suitable course that will fit in their interest and aspirations.

But most students who are highly positive about planning for abroad studies will drop the plan because of the high costs attached to it. Higher education is way too expensive in foreign countries and parents of many aspirants are not in a position to give the entire funding. But thanks to a study abroad loan you now don't have to end your education dream for the paucity of funds.

These loans are a boon for many aspirants across the nations who are willing to fly overseas to fulfilling their dreams. Since, these loans are offered to children they come at low-interest rates, flexible repayments and with tenure of around 8-10 years for repayment. Thus, you can be self-independent and fund your own dreams instead of putting your parents/guardian's future investments at risk.

Every lender whether is private or public has its own well-defined criterion for sanctioning the loans and getting aware of this can help you reduce the pain and hassles you have to go through the loan application process, especially the manual process.

Here are some basic criteria for a candidate to apply for overseas study loan:

•    He or she should be a citizen of India

•    He or she should have secured admission to professional/technical course through an entrance exam or selection process

•    The student should have secured admission in foreign university/institute along with admission letter

•    Parents/guardian should have an exceptionally good credit score

•    And the type of collaterals you can keep mortgaged with the lenders

Private lenders are keen on offering customized and affordable solutions for students and therefore come up unique and friendly solutions such as a pre-admission loan, pre-visa disbursement loan, score based products, 100% funding for meritorious students, wider course and country coverage, bridge up loan, etc. You can consider private lending bodies to avail a study abroad loan with interest rates as low as 11-15% and a mere processing fee of 1-2% on the loan amount. To land on best lender site, you can conduct a little bit of research on the internet and compare between various lenders across India.

Shortlist at least 4-5 alternatives that fit in your requirements so as to save yourself from getting duped with exorbitant interest rates charges. After a thorough research apply for the one that you find the best out of the lot. With proper documentation, good academic score, a credit score of co-borrower it will take not more than 24 hours for your loan to be sanctioned. A customer rep. will be there to come to your doorstep to collect your documents and guide you through the entire loan structure, interest rates, processing fee, monthly instalment, etc. The online team is always at your assistance to clear the doubts on terms and conditions, policy, etc. It usually takes a fortnight for the loan to be disbursed into the university/institutes bank account.

Compare quotes online and apply for overseasstudy loan, now!

Wish to study abroad? Opt for a student loan

While planning to study in dream universities like Oxford, Cambridge, Massachusetts, Queen's University or Belfast managing the costs is the biggest concern for students. In fact, most of them just take a U-turn from the thought of pursue higher studies in dream foreign university and settle down for another career options. However, today there are a lot of education loan providers who are willing to fully fund your higher education if you score well and really aspire to achieve your dreams in near future.

Private lenders are taking care of the financial worries of the students by offering tailor-made education loan for abroad solutions at attractive interest rates. Lenders have come up with unique and friendly solutions such as pre-admission loan, pre-visa disbursement loan, score based products, 100% funding for meritorious students, wider course and country coverage, bridge up loan, etc.

Since these loans are offered to students the interest rates are substantially low compared to other forms of loans and also they have repayment tenure of around 7 to 8 years for repaying the money. Thus, instead of putting your parents or guardian's future investment at risk, students can opt for a self-independent way of funding their own dreams through education loan for abroad.

Education Loan for Abroad

Your student loan covers tuition fees, exam fees, lab and library fees, caution deposit, travel, books and equipment, project funding and study tours. The paying back process of the loan gets started after 6 months to one year of the course completion date; it is termed as a moratorium period.

For lenders to decide the eligible loan amount, they have to evaluate many factors such as student's academic score, the popularity of the university and course, its job prospects, creditworthiness of the co-applicant, country, currency rates, etc. After thorough evaluation lenders will offer you particular loan amount and certain interest rate. While most government banks will demand margin money, private lenders are keen on offering 100% education finance and with proper documentation; they sanction your loan within a day or two. The interest rate on education loan for abroad depends on the country you wish to study, the loan amount, tenure and collaterals. Students who secure admission to top-rated universities are offered loans with low interest rates.  The documentation process of private lenders is quite simple and this is what separates them from government banks that prove a big time hassles for students.

You'll require:

•    Basic KYC (Aadhar, PAN Card) a co-applicant credit score report

•    Confirmed admission letter

•    Academic Documents (SSC, HSC, Graduation, etc. whichever applicable) of the student along with a valid passport

•    Income Documents for the co-applicant/ co-borrower such as pay-slips, bank statements, Form 16/ITR

•    Collateral documents

No lender will offer education loan in cash, they will transfer the money directly to the account of the desired university at the beginning of each semester. Its’ advisable to compare quotes of leading lenders online, check the interest rate, principal amount, tenure, repayment options, terms and conditions and then zero in on particular lenders.

Online facilities let you apply for education loan for abroad right from the cozy corners of your homes or colleagues. Be self-independent and fund your higher education on your own. Apply education loan for abroad online, now!