Things to consider before availing a study abroad loan

The education sector has been flooded with a lot of lucrative courses these days. This is nothing but the consequences of the ever so growing competition in the industry. It has also led to the escalating prices of education fees due to which many aspirants have to hold themselves back from achieving their dreams. Unless you have a scholarship, you require heavy funds to secure a place in a prestigious institute outside of your country. However, an education loan can always come to the rescue, especially if it is a study abroad loan.

It is understood that, studying abroad will give rise to a number of expenses apart from just the basic academic fees. Study loans are catered to take care of all such expenditures such as the cost of books and laptops, living costs, library/uniform expenses, etc. Hotel and mess charges are also covered under some study abroad loan schemes.

Students who wish to avail study abroad loan should be citizens of Indian national and fall between the age group 18 to 35 years. If the student has secured admission in an institute approved by the private firm/bank, his/her chances of getting a loan become much higher. Various study abroad loan schemes include:

· Pre-Visa disbursement loan-In case the student has already secured admission in a foreign university, this loan will help him/her in easily obtaining a visa. The loan gets disbursed to your account before you leave your country so you can demonstrate adequate funds during your visa interview session.

· Bridge loan-This loan covers the additional expenses such as coaching fees, entrance exam fees, cost of application forms, the cost of books and laptops, living and maintenance costs while staying abroad etc.

· Score-based benefits/loan-Students having an excellent academic record, namely GRE score, get to enjoy special privileges in terms of interest rates.

· Pre-admission loan-This study abroad loan comes to the rescue when you are asked for ‘proof of funds’. Based on this loan, you can clearly fly your way to a different country by assuring availability of sufficient funds in your bank account.

· Fast-track loan-As the name suggests, it is a loan which is availed to speed up the admission process abroad. A fast track loan is an express loan which makes everything quick and less time consuming.

· Certificate of availability of funds-A certificate which signifies that the student has enough funds (capital) to take care of his education as well as living expenses in the country that he would be visiting.

Depending on the type and amount of the loan, the interest rates may vary. Though, there are a few private financial firms that offer competitive interest rates as low as 12.75%. For such low interest rates, these firms charge a processing fee of 1–2%, which may differ from case-to-case basis.

Just like many other things, availing a Overseas Education loan can also be done online for which you will have to finalize a few things before hand like the institute you wish to study in, the amount of loan that will be required, identify the co-applicant, keep all the documents ready and make sure to apply in advance so that the disbursement takes place at the appropriate time.

Source : https://tackk.com/things-to-consider-before-availing-a-study-abroad-loan