Numerous students from diverse parts of India aspire to complete their higher education abroad. This dream, however, does come with a high cost. Very often, the savings of the parents are not enough to meet the expenses of studying overseas. Hence, to finance their overseas education, many students apply for a loan. This article discusses the key features of overseas education loans.
As the number of students going for higher education overseas has been consistently rising in India, so has the number of funding options. While certainly many reputed international educational institutions offer scholarships and grants, such financial assistance is available to a relatively small student base. Hence, applying for a loan for education abroad can considerably increase a student’s chances of getting admission to their preferred university abroad.
Features of Overseas Education Loans • Custom financing: Overseas education loans are tailored to meet the exact requirements of the students, and make sure that they do not have to face any financial issues while studying abroad. Apart from the tuition fees, a good percentage of the living expenses, including the purchase of books, computers and other equipment, tend to be covered by such loans. Many overseas education loans even provide up to 100% of the tuition fee, as decided by the university or institution.
• Versatile options: Overseas education loans are available for a variety of courses and programs. You can apply for such a loan for graduate or post-graduate courses or other job-oriented professional or technical courses. The courses and the institute offering them, however, have to be approved by the lender.
• Competitive interest rates: There are many reputed lenders in India who offer competitive interest rates for education loans. This helps keep the EMIs affordable for the borrowers.
• Long-term repayment: Most overseas education loans tend to have a long repayment tenure. This provides students with the flexibility to repay their loans over the years. They may also get the option to start paying off their EMIs after their course is over and they are ready to join the workforce.
• Collateral: Many lenders today do not require students to provide collateral or any form of security to get an educational loan. However, in case you can provide security in the form of residential/commercial property or a fixed deposit, then you are likely to enjoy higher loan amounts and/or reduced interest rates.
Decreased Financial Strain Investing in higher education of the kids, especially if it is overseas, can considerably deplete the savings of the parents. This can make it difficult for the parents to meet any sudden major expenses, like emergency hospitalization. Moreover, solely depending on savings to finance the education of a child limits the amount of funds available. The savings might not always be enough for the kids to study in their dream college or desired destination.
The cost of studying abroad, at a renowned college or university, comes with a big cost that can go into several lakhs. Despite grants, scholarships, and other financial assistance available, the net cost remains out of reach for many deserving Indian students. Applying for an education loan would be the simplest and smartest way for these students to turn their dream of studying abroad into reality. You can use an online educational loan calculator to determine the loan amount you would need to meet the cost of studying at your chosen institution abroad.
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