How to Get Education Loan for Studies Abroad? [+ Benefits]

In today’s competitive world, it has become crucial to study abroad for better career options. Every youngster wants to study overseas because of the higher standards of overseas education. Thus, to complete this dream of the students, the banks and financial institutions offer a fixed amount with very nominal interest as an Education loan. This amount covers the complete institution fees, shelter, books, etc. Accordingly, you can use the loan to cover study-related expenses.

Before taking out a loan, you should consider several factors, such as the type of institution you are going to choose and many more. Don’t worry; if you are new to this industry, you can also seek the help of study abroad consultants in Calicut. They can make this complex process simple for you.

Step-by-Step Approach to Getting a Study Loan

Taking out a study loan is the right option for reducing the cost of your studies. Although you need to pay it back after your education, it can be very helpful for you and depends on your financial profile. Some banks also finance 100% of the cost of your course. However, to get a loan, you need to follow the key steps so you can make your work simple. You can also go to a study abroad consultant in Calicut for a better understanding. As all know, every bank has its process, but here are some of the most common steps that you need to follow.

Research

The first and most crucial step is research. Yes, there are numerous lenders offering education loans, which makes the process of choosing the right one easier. This makes it important to research the various lenders and identify those who are offering study loans at lower rates of interest. Make a perfect decision based on the ROI they offer, the repayment policy, and the eligibility criteria.

Based on these factors, you can complete your research to get a good Education loan.

Check Eligibility Criteria

Check the suitable criteria for the study loan. Most banks have their specific terms and conditions for the loan. Firstly, check all the aspects; for example, the terms can depend on the min percentage of marks in the previous year, the course of study, the institute that you are choosing, etc.

Complete your Documentation

Once your lender gets shortlisted, gather the documents. You need to submit some specific papers for the loan, like a PAN card or passport, a letter of acceptance, proof of the income of your parents, etc. All these documents are important for getting an Education loan.

Submit the Loan Application

When you collect all the documents, you can submit the application form to the selected bank. You may visit the branch or fill out the form online, depending on the financial institution you choose. The application form must be filled out accurately, and try to provide all the required documents.

Review and Disbursement

When your application is submitted, the university will review your documents and check all the relevant papers. After this, you must sign the loan agreement with the financial institution. Then, the bank will disburse your amount directly to the college account. It depends on the loan terms and conditions. You can use the amount for your study expenses.

All the above processes are complex and associated with unexpected challenges. To deal with this problem, you can seek the help of study abroad consultants in Calicut. Now you can also learn about the benefits of education loans for studying abroad in the next section.

Benefits of Education Loans for Study Abroad

The education loan can help you pay your tuition fees, books, and the cost of living. It encourages you to study without worrying about how you will afford your studies. It removes the burden on you to finance your overall costs. You need to pay the amount after completing your studies. Here are some benefits that can be considered:

Financial Support

You can easily opt-in to any course without thinking of the funds. There is no need to liquidate any of your investments or your family savings. It reduces the economic pressure on your family. Most financial institutions can provide you with up to 20 lakh INR as an Education loan. If you have high grades, you can also get grants from the government.

Tax Benefit

The education loan comes under the tax rebate. For example, if you take a loan from any financial institution, you can claim the complete interest in the tax exemption. It is also a very crucial benefit of it.

Post-Education Repayment

The loan needs to be paid after completing the study program. You can schedule the repayment in EMIs as per the guidelines. There is no need to take on the burden of paying the fund back just after completing your course. The students can focus completely on their studies because most lenders offer flexible options for repayment. To make the process simple, you can also get in touch with the best study abroad consultants in Calicut.

Credit History

By paying the loan on time, students can create their credit history. Based on it, they can easily get loans, credit cards, etc. Financial institutions consider credit history before offering any loans or financial products.

Wrapping Up

In conclusion, applying for an education loan to pursue your studies abroad is a great way. The loan application process is tough and also very challenging. Moreover, for a smooth start to your study abroad journey, contact the best study abroad consultants in Calicut. With the right lenders and good financial planning, students can take advantage of education loans. For more information, you can visit Gradding.com. They offer you a free counselling session where you can get more ideas about it.