So, you have taken one more step towards a successful career by deciding to pursue higher education overseas. But still, you are a bit skeptical as you do not have enough money to pay the University fees. No worries as you can avail of an education loan that can be used for your higher education.
An overview about education loans:
- To put it in simple words, an education loan is a loan that you can use for funding your overseas education.
- The education fund amount can be as high as 25 to 40 lakhs and it depends on aspects like the financial institution that you have approached, the course that you want to pursue abroad, etc.
- What separates education loans from other types of loans? The education loan amount has to be repaid to the financial institution after you have completed your education and have secured employment.
- Some of the financial institutions transfer the education loan amount directly to the educational institute and this amount is transferred on a semester basis. The borrower or guarantor has to pay the interest amount to the lender. The principal amount of the education loan has to be paid after completion of education and once the borrower gets employment.
Do you have clarity on certain important aspects of education loans to study abroad?
1. Are you aware of the technicalities associated with education loans?
- If you want to make the education loan experience a pleasant one then it is important to focus on certain technicalities.
- You need to read the terms and conditions very carefully and if you do not understand any clause then make sure to check with the financial institution before signing the documents.
- You must check the details like the interest that needs to be paid, the tenure of the repayment, etc.
- You must have a proper understanding of the EMI that you need to pay and for this, you must check the details of the amortization schedule.
2. Choose the education loan amount prudently:
- You might feel that it is better to borrow a very large education loan amount as it makes your life easy.
- But while doing this keep in mind that the higher the loan amount the more is the EMI amount. So, you need to be sure whether you are in a position to pay a higher EMI.
- So, before you choose the education loan amount, check your exact requirement and borrow the amount as per your requirement.
3. The impact of missing out paying an EMI:
- You are busy studying abroad and due to this, it becomes tough to keep a track of the EMI payments.
- It may happen that you miss out on paying the EMI of your education loan and this, in turn, can have a negative impact on your credit history.
- Don’t miss out on any EMI and keep your creditworthiness intact by choosing the auto-debit option.
4. Have clarity on the repayment method:
- You need to have complete clarity about the repayment method that you have to adopt.
- Normally there are two repayment options in the case of education loans. The first option is where the borrower can repay the loan amount after completing the education and getting employment. The second method is where the borrower can pay the principal amount later when he gets secured employment. He has to only pay the accumulated interest amount every month to the lender.
- Check which option is feasible for you and which option helps in reducing your liability at the earliest.
5. Keeping a track of your education loan repayment is a must:
- You surely want to pay off your education loan debts at the earliest and for this, you have to keep track of the education loan repayment.
- The best thing that you can do is religiously keep aside a part of your salary for paying off the education loan.
- Remember that if you delay paying off the education loan then you are just adding to your liability and this is not going to reflect very well on your creditworthiness in the future.
6. Have you opted for the right lender?
- An education loan is not like any other traditional loan where you are going to pay off the debts in 5 to 6 years.
- This is a loan where the loan repayment tenure is longer and you have to interact with the lender for many years.
- Therefore you have to be sure that you choose the financial institution prudently. For this, you need to check the track record of the financial institution. You also need to ask questions to the lender if you have any doubts.
- Make sure that the lender is transparent about the loan policies and terms and conditions and only after considering all pros and cons choose the right financial institution from where you can take the education loan.
Need a loan to fund your education? Then connect with Money View:
If you are interested in taking a loan for your overseas education then you can check for the same with Money View. This is one of the best and reputed financial institutions that is known for its quick disbursal of loans with minimum documentation. One can check the eligibility for taking a loan from Money View on the website or app of Money View.
Let the financial crunch not hamper your dream of pursuing higher education overseas. You can always explore the option of taking an education loan for studying abroad. But before you take the education loan make sure that you check a few important aspects.
Make sure that you choose the right financial institution and read the fine print carefully before you sign the documents. Never miss out on the EMI of your education loan and have clarity about the method of repayment of the loan. Ensure that you keep a track of the loan repayment and never miss out on an EMI by choosing an auto-debit facility.
For complete details about the different types of loans offered by Money View visit their: https://moneyview.in/