Wisdom tells us that a person must always stay ready for the opportunity and prepare to grab it. The same is true for those planning to study abroad and make an amazing career. One of the best ways is to have your source of financing ready when you are planning to go abroad to study.
An education degree from a world-class institution can make a career of a person and put them in a different league. However, the cost of getting one is high, and even if some parts of one can get through a scholarship, the other needs to be funded. Another thing that one can do is arrange funds through student loans.
For example, a person needs to know that they can get the quick disbursement of the fund and keep the papers and documents ready so that they can make a gateway to study at their dream university.
A person can check with a loan agency and find which banks offer the best interest rate for student loans and then make a calculated decision. In this blog, we will discuss some of the most common factors one needs to know before getting a loan and planning for an educational degree abroad.
Check the Processing Time of the Loan
When a person is going for a student loan, then they need to understand that it’s not the same as a personal loan. In some student or education loans, the amount gets directly sent to the university where the student is studying.
The clearance, therefore, is made by the bank, and the student needs to inform the bank authority a little earlier before the payment dates so that they can submit the fees properly. One of the core objectives of the bank is to do the correct due diligence, and since the loan amount is higher in this case, the documentation and checking process takes time.
In a private or a public sector bank, it may take up to 1 month to sanction a loan, whereas in NBFCs or some other international bank, it can take up to 10 to 15 days.
Keep a Track of Borrowing Limits
In a student loan, there are certain borrowing limits, and depending on the type of education a person is pursuing, the banks change the borrowing limits. For example, in a reputed private bank in India, one can find that the cost of a bachelor’s degree can be secured at an amount of 1 crore. Whereas in terms of a master’s degree one can find the bank is willing to disburse half of that. The time duration is much less in that case.
However, some lenders can increase the amount when a person adds some secured mortgage around that loan. Then, the disbursed amount can go high, and that can help a person get an educational degree from a reputed university in a foreign country.
Check the Rate of Interest on the Loan
The rate of interest needs to be checked on a loan as it’s an important factor that will determine the total cost a person will be paying to take up that loan. In the majority of the cases, the student debt is carried by the students.
They can finance the loan after their education as they enter the job market, and that allows the person to take the risk of taking a loan for an educational degree. Here, a person can get in touch with an agent through a DSA app in India that can solve the requirement of a person, and they can get the best bank that will match their criteria and also have a favourable interest rate.
Follow the Loan Tenure Details Carefully
The loan tenure needs to be analyzed carefully before taking on a student loan, as the longer the student loan, the lower the monthly interest rate of the person. A person now needs to choose between paying higher EMIs in the initial years and closing the loan fast or dragging it for many years without affecting the financial aspect of an individual.
In some student loans, the repayment tenure is up to 10 years, which makes the repayment process easy for a student, and if one happens to cross the threshold in their financial condition, then they can always choose to foreclose the loan.
These are some of the key factors one needs to check before availing of a student loan for their plan to study abroad.
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