Top 3 Foreign-Education Loan Providers in India - Study Aboard

Indian students are getting more and more opportunities to study abroad with each passing year. Old favorite destinations are giving way to new ones like Canada. Studying abroad has, understandably so, been a romantic dream for many. Studying abroad means different things to various people, but mostly, it is all about experiencing a new culture, getting in-depth education on a chosen subject, getting world-class education, getting to see a new country, meeting new people and making new connections, and etc.

But for many, it remains a dream. This is generally due to a lack of funds. Studying abroad takes a lot of money. It includes tuition fees, travelling expenses, rent, and so much more. Not everyone can pay so much out of their pocket. Most require a loan.

And that’s why education loans exist, to give you the opportunity to have a great future which wouldn’t have been possible otherwise. And look, you can get these loans not just from banks these days, but from institutions and universities around the world. And that is apart from scholarships and grants.

Here’s a big reason why education loans are important nowadays: it directly affects the university, the type of course and the quality of education one can get! Thus, foreign study education loans are the best. You can get a wide variety of such loans and schemes from the various Indian banks. Most of these come with a flexible loan repayment option, which makes it much easier for you. Many education loans have a moratorium period as well, which is a certain period after the course completion, after which you should start repaying. Thus, you do get a lot of time to repay.

Features of education loans

• Anyone between 18 and 35 year of age is eligible for foreign education loans.
• One can choose management courses, medicine, engineering, graduate courses, graduate degrees, architecture, arts, pure science, hotel management, and so much more.
• Loan expenses include tuition fees, exam fees, caution deposit, lab and library fees, travel, equipment and books, projects, study tours, and more.
• Borrowers get 5-15% margin for foreign education loans.
• Loans can be paid through EMIs by ECS and post-dated cheques to the concerned bank.
• Banks give education loans with various tenures, inclusive of the moratorium period.
• One can get a co-applicant for full time courses, and they can be family members and spouse.
• Banks are willing to give 20 lakh max with moratorium and a max of 10 lakhs without moratorium.
• For loans till 4 lakhs, collateral is not needed. For loans between 4-7 lakhs, third-party guarantee is needed. For loans more than 7.5 lakhs, tangible collateral security is needed.

What you Should and Shouldn’t do when Taking an Education Loan in 2021

The birth of a child of course is a cause for joy in your life. But with that joy comes expenses and a whole lot of responsibilities.

It is one of your life’s tasks to save up money for your child’s education. That’s all well and good, but with the rising costs of education for children, sometimes you may need an education loan, especially if it is for college. When taking such a loan, it is important to make a judicious choice and decision. To that extent, here are some things you should do and should not do when taking an education loan.

The thing about saving money for your child’s education on your own is that you have to factor in inflation, your changing lifestyle costs, shifting career goals, and much more. Because of this, and especially when it comes to college tuition, many parents need to take education loans. Here’s what to do before getting them, and what not to do.

Do’s

Think before you leap

Here’s a gold nugget for you: even if your child gets that additional degree, it does not guarantee a dream job or even a better job. What you need to do is to think before making the loan. Think whether your child’s course is in line with his/her future interests and prospects. STEM courses may give your child better prospects and job openings, but the same job is something the child has to keep for 30 years or more. So ensure that this is the career field he or she wants to go in for. Many colleges now offer the best of science and arts subjects, and even joint degrees.
Keep future salary expectations realistic

It will be a big mistake to take the maximum loan amount without factoring in your repayment capacity. If you won’t know when your child shall get a job, it’ll be risky to pick huge loans.

If you are a student opting for student loans or education loans, pick one which you are more or less certain you can pay off with your future salary. In such cases, your co-applicant can be your parent, but always try to repay on your own. So do keep a realistic salary expectation.

Don’ts

Choosing courses because loans are available

Here’s a big mistake people make, and more people make this mistake than you think. They pick courses because they see the college or institute being tied up with banks giving cheaper and easily-available loans. This is a bad choice because there are many institutions which hide their poor education quality by tying up with lenders. You should pick courses you like after scrutiny instead.
Take top-up loans

Many students take this facility to complete their PG courses. But this is not a good practice since it only increases your debt. It’s far better to repay an existing loan first before taking another.