Mistakes to avoid while applying for an education loan for studies abroad

Educational loans for studies abroad undoubtedly make life easier as it suits one’s pocket without burdening the applicant or their family. However, taking this plunge and how to check each and every nitty-gritty, so that no fine print is oversighted, is the key. In this article, we shall take you through some real-life facts and uncover all the grey areas that need to be vigilantly noticed while applying for a loan.

Education loan for studying abroad:

There’s neck-to-neck competition when it comes to consumer debt between educational loans and home loans. Undoubtedly, many wishful students achieve their goals by taking the right benefits of an education loan. Sometimes, when people are unable to meet deadlines, the same loan can haunt them and become a royal burden. As per strategies students can avail up to 20-40 lakhs bearing in mind they have previously chalked out the amount they need. Getting an educational loan for studying overseas for an amount more than what you need is like falling into a pit. 

Planning it out:

One needs to be conscious while planning out an educational loan for studies abroad. Without forgetting its purpose, the loan should be utilized for educational objectives only. Apart from having secured your admission, you should have a clear picture of the part-time job you will be pursuing to fund your miscellaneous expenditure. 

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Expenses, overheads, and miscellaneous

A detailed search report of the sum of educational loans for studying abroad you are hopeful of procuring should be handy while applying for a loan. It is easy to fall prey to a higher loan amount but repaying it could become a herculean task. So be intelligent and select for just the barest minimum that is required. A thorough comparison with various companies offering loans along with the best interest rates which are easy for you to pay back should influence you. Whatever be the overheads, miscellaneous expenses try and dive into your savings rather than bagging it up on the loan.

Mistakes to avoid

Read the lines between the lines. This is the most crucial part and that is reading the fine print, including the terms and conditions. The youth of today practice TLDR (too long, didn’t read) but that’s a strict no-no here. Seek adult advice, consult close friends who have been through the same and consider financial counseling if you aren’t certain about handling finances. You and your co-borrower should be well versed with every detail of your educational loan for studies abroad. A word of caution is that it is very easy to slip into financial debt. So, be wise!

How to apply for an educational loan?

The rule of thumb here is to do in-depth market research. Do not go with the first lender. Use an EMI calculator. Ensure that if you are obtaining an expensive loan, it covers college fees, textbooks, lab fees, etc. At the click of a button, several websites will appear before you. But, stop consider nationalized banks also which have hassle-free and customized loans to offer with fairly low-interest rates.

Customized student-friendly loans

Safe-guarding a child’s future is one of the vital milestones for parents. Keeping it light on the finances as well as signing up for an education loan for studying overseas is what parents strive to give their off-springs. Though various banks have loads of luring schemes to offer to be money smart is trending. Opt for a customized educational loan EMI calculator. Look for options that make your repayment easier. So, for instance, your course amounts to 17 lakhs, add the lodging, boarding, and other hidden expenses that you need not hunt for later.

Do’s and don’ts:

A quick peek at the do’s and don’ts is always helpful. One must take a thorough look at the plans being offered, the processing fees, hidden charges, and if the education loan covers just the education/tuition fee or other on-campus benefits too. Rightfully know about the turnaround time, rate of interest, and if it can be lowered if you pay up your premium upfront in the beginning. Check flexible repayment options and the need for collaterals. Moreover, do not overlook securing your loan so, that in case of an inevitable situation your bank volunteers to pay up the outstanding amount.

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Bonus tip:

Comparing interest rates and seeking professional assistance is at no time waste. It may cost you a couple of extra bucks but will give you a detailed guideline and especially, education loan for studies abroad procurement choices that suit your pocket. Approach the lender after being certain of the amount you want. Debt management is crucial and you do not want to crumble under the financial burden and let your academics suffer. As far as an education loan is concerned remember, Less is More.

We as Indians give top-notch priority to our education. The majority of the households bear a dream of an education loan for studying internationally. So, wake up! Make sure you reap the advantages of your educational loan to the fullest. Carefully do your front-end analysis, seek professional advice from experts in abroad education loans like GyanDhan, and bingo. You will be there before you even know it. For most aspirants, an education loan is the first-ever loan of their lives and I am sure they want to come out of it unscratched!