Debunking 6 Misconceptions about An Education Loan For Studying Abroad

 

Education loans are the perfect way to fulfil your financial requirements if you are planning to study abroad. Along with helping you pay the course fees, there are dozens of benefits one can enjoy when they take an education loan for studying abroad. However, many people are quite hesitant about taking such loans. This is mainly due to the lack of correct information and the presence of misconceptions regarding such loans in people’s minds. To create better awareness, we break down 6 misconceptions about taking an education loan for studying abroad.

 


1. Education loans have extremely high interest rates 

Lenders understand that high interest rates may stop aspiring students from pursuing their higher education abroad. Therefore, there are many lenders in the market that offer competitive interest rates. Make sure the lender you are going with provides great features along with a suitable interest rate. You can also use an educational loan interest calculator to get a stronger understanding of the interest you will be possibly paying.

 

2. Education loans take a lot of time to process and get sanctioned 

Usually, loans taken from banks take a lot of time to get processed, so people have this misconception that an education loan for studying abroad may take a lot of time to get processed too. However, if you are taking a loan from a reliable NBFC, your loan application may get processed quickly. It is necessary to choose a lender that provides quick loan processing as any delay from the lender’s side can have a negative impact on your admission process.

 

3. Education loans provide only a limited amount of money

This is only a misconception as there are many NBFCs who do not have an upper limit on the loan amount they are willing to provide. Your funding requirement may be high than usual depending on several factors like the choice of course, university, study destination, and so on. So, make sure you do your research and choose an education loan for studying abroad that can meet your requirements. 

 

4. Education loans require security beyond a particular amount 

Many NBFCs are willing to provide unsecured education loans even for very high amounts; that is, you do not have to provide any sort of collateral to the lender against the loan. This ensures that your family’s assets or property stay with the family. 

 

5. Education loans are accessible only to the academically well-off

There are many factors that will determine your eligibility for an education loan for studying abroad. Your grades are only one such factor. A reliable education loan lender will look at your career potential in the coming future rather than your academic past. 

 

6. An education loan will only provide funding for the course fee

When you go to a foreign destination for higher studies, you will have to incur many expenses beyond your university course fees. These expenses include travel fare, housing costs, study material costs, and so on. Not many people know that an education loan for studying abroad can provide funding for these expenses as well. 

 

Do bear in mind that the features of different education loans may differ from lender to lender. Kindly read the loan documents carefully before signing. 

 



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