For the vast majority of students wishing to pursue higher studies in foreign countries, an educational loan for overseas education is a crucial financial lifeline. This detailed guide strives to give insight into why taking an education loan for ab...
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For the vast majority of students wishing to pursue higher studies in foreign countries, an educational loan for overseas education is a crucial financial lifeline. This detailed guide strives to give insight into why taking an education loan for abroad studies in desirable, its advantages, and how you can apply.
Types of Education Loans
1. Secured Loans
Collateral: Property, FDs, or other tangible assets in nature.
Interest Rates that are lower than most unsecured loans as a result of reduced risk for the lender.
Secured loans provide you with higher loan amounts, which is perfect for studying in eminent institutions or a very expensive course.
Unsecured Loans
No Collateral Required -Applicants are qualified for this loan as per their educational background and co-signer's financial position. No Co-Signer: in the case of good Academic candidates.
Increased Market Interest Rates: In connection with the increased risk to lenders.
Maximum Loan Amount: Ideal for lower amount study loan requirements Or unsecured loans.
- The Key Features
Loan Amount: Depend on Course, country and institution Covers fees, living costs
Key Features of Education Loans
Loan Amount: Varies based on the course, country, and institution. Can cover tuition fees, living expenses, travel, and other related costs.Interest Rates: Can be fixed or floating, depending on the lender. Rates may vary based on the applicant's credit score, collateral, and loan tenure.Repayment Terms: Typically start 6-12 months after course completion or post securing a job. The tenure can range from 5 to 15 years.Moratorium Period: A grace period during the course and a few months after, during which repayment is not required.Tax Benefits: In many countries, interest paid on education loans is tax-deductible under specific sections of the Income Tax Act.
Eligibility Criteria
Academic Record: Consistent and commendable academic performance.Confirmed Admission: Admission letter from a recognized foreign university or institution.Co-signer/Guarantor: Often required, especially for unsecured loans, with a good credit history.Age Limit: Generally, applicants should be between 18-35 years of age.
Many students dream of pursuing higher education abroad
Studying abroad is an exciting prospect that opens up a world of opportunities for students. Whether it's the allure of prestigious universities, exposure to diverse cultures, or the chance to enhance one's academic and professional growth, the benefits of pursuing education overseas are undeniable. However, the financial aspect can often present a significant hurdle for many aspiring students.
