Things to keep in mind for getting the best student loans for studying abroad.

Who does not want to go abroad and pursue their higher education from a good university? A majority of Indians work hard to pursue this dream and are very focused on their goals.

But they also have to worry about the financial aspect of this dream. Higher studies cost quite an amount, and even more so when it comes to studying courses abroad. This is why most aspirants look for the best student loans for studying abroad. Sure, this loan would lighten a student’s burden, but there are still a lot of things for you as a student to keep in mind when it comes to finances.

Collateral requirements -

Banks mandatorily require their applicants to provide collateral once the loan amount crosses Rs. 7.5 lakhs. Since we are talking about an abroad education loan, you are most likely to require more than this amount. If you are not comfortable with providing collateral, you should check with Non-Banking Financial Companies (NBFCs) since they provide the best student loans for studying abroad, without requiring any collateral.


Repayment plan -

It is very important to focus on the repayment of the loan right from the start. A lot of students think of this too late, and hence find themselves in trouble when they face difficulties when they face problems in paying their monthly installments. This is you should always take a loan only after you have a steady plan on repaying it.

Getting the best student loans for studying abroad is not only about getting a big loan amount but also about getting a suitable repayment option. Always use an education loan EMI calculator which will give you the amount you would have to pay as part of your monthly installments. This would help you plan your budget in a much better way.

Loan margin -

Financial institutions may not always provide 100% financing of your academic expenses. They usually provide a major part of the total amount and you are expected to pay for the margin from your own expenses. NBFCs however are more likely to offer the best student loans for studying abroad, as they provide 100% financing for your education loan, something which banks do not do.

Moratorium period of a loan -

A moratorium period is like a grace period where you do not have to start the repayment of the loan. This period lasts for usually one year after you complete graduation or 6 months after you get a job, whichever comes first. The validity of this period may differ from lender to lender. 

However, you should also know that the interest of the loan keeps getting accumulated every month even during the moratorium period. You can choose to not use the moratorium period and start repaying your loans immediately, as this move would help you clear your loan faster as well as save on interest getting added.

We hope this article has been helpful to you, all the best!

 Related Blog:-  Your checklist for taking education loans to study abroad.

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