4 questions to ask yourself before taking an education loan for studying abroad

 

Education loans have helped millions of middle-class students to pursue their higher studies in prestigious universities around the world. It is a boon for the ones who can study further in their fields but do not have funds to pay their higher education expenses. In recent times, education loans for studying abroad have become more accessible, which have resulted in students actively applying for such loans. In this article, we will tell you about 4 questions that you should ask yourself before getting an education loan for studying abroad, and thus, be a responsible borrower.

 

 


 

  1. Do I satisfy the eligibility criteria, and do I have documents to prove it?

This is the first question you should tackle. If you don’t stand eligible for an education loan for studying abroad, the other questions turn invalid. So, know the education loan eligibility criteria of the lenders. See if you fulfil those eligibility criteria. And gather proofs or documents that prove your eligibility. For instance, keep identity proof of your Indian citizenship, your AADHAR card, and your driving license ready to prove your citizenship.

 

  1. Do I need any value-added services?

Foreign universities ask meritorious students to prove that they have funds to finance their course tuition fees at those universities. Similarly, the host countries of those universities ask students to submit proof that they have enough money to pay their 1 year’s living expenses to get a student visa. Hence, students need finances to study further at foreign universities. Lenders provide value-added services like proof of funds, pre-admission loans, pre-visa loans, fast-track loans, doorstep services, and so on to students who need these services. So, select a lender that provides these services.

 

  1. How long do I want the repayment tenure to be?

Lenders do not expect you to repay your education loan for studying abroad as soon as you earn your higher degree. They give you a repayment tenure—the number of months in which you are supposed to repay the education loan gradually. Remember: the longer the repayment tenure, the more you pay over time through your pocket as interest is accrued on the education loan. Select a lender that offers you the most convenient repayment tenure, and at the same time makes repayment efficient in terms of money.

 

  1. What kind of EMI would be the best to repay the education loan?

Lenders do not expect you to repay your education loan in lump sums of money. The lender asks you to pay a small, fixed amount of money every month to repay the education loan gradually. It is called Equated Monthly Instalment or EMI. You have to pay the EMI until the last month of the repayment tenure when the loan is cleared off once and for all. Ask yourself, what is the EMI amount that would not be too cumbersome for me to pay? The right lender will offer you a suitable repayment plan.

 


 

 

So, these are the 4 questions you should ask yourself while taking a study loan for studying abroad. Now go and fulfil your dreams of studying abroad. All the best!

 

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