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Many students with tremendous potential struggle to get the right one from premier institutes. It is owing to high costs, especially for overseas loan education. Hence, many banks and private finance companies provide to reduce the financial burden.
The application process for these loans is straightforward. If you meet the eligibility criteria, you can complete it quickly. However, many aspirants struggle with the steps involved in the application. Hence, we have covered all the steps to guide:
Decide the loan amount:
The loan amount for overseas studies differs vastly from domestic. It is essential to check the fee structure of the university you choose. You do this by shortlisting them based on your course and considering all the expenses with the fees. There are many costs involved in pursuing studies abroad. An education loan for abroad covers all of it. It includes accommodation, tickets, stationery, etc. Thus, you should factor in all these expenses.
Confirm eligibility criteria:
Your eligibility gets decided on different parameters. They include your age, merit, academic accomplishments, course type, university reputation, co-borrowers income status, etc. Also, lenders have specific criteria based on their terms. Hence, it is essential to research it before you apply for education loan.
Select the lender:
Now, finalise the lender. Most of them provide a study loan for abroad. They have attractive offers based on your profile. You can check this by visiting their respective websites. They also offer tools like an education loan EMI calculator to estimate the education loan amount you get. It enables you to compare their interest rates.
Apply for the loan to the shortlisted lender. Avoid applying to multiple lenders to incur less loan processing costs. You apply easily by visiting their portal and filling in the application form. You must submit documents like identity proof, residence proof, academic certificates, income, the credit report of the co-borrower, etc. The lender verifies these to process your application.
Once your application gets approved, the loan amount gets credited directly to the university. There is a variation in its value owing to the exchange rate. It heavily impacts the loan amount sanctioned based on the prevailing forex rate. Hence, contact your lender to learn about the same. You should avoid getting charged with a higher interest.
You get flexible repayment tenure from the lenders. It is the moratorium period, which allows you to start repaying after completing your studies. You pay after one year of course completion. It is to offer you enough time to get employed. Hence, it is advisable to plan repayment during the grace period to reduce Equated Monthly Instalments.