Is it worth taking a student loan to pursue an education abroad?

Going by the QS World University Rankings, India is only second to the highest student enrolments in universities around the world. With each passing year, thousands of Indian students leave their country to pursue an education abroad.

It is common knowledge that an abroad education would cost more than what pursuing an education at an Indian institute would. It is quite common for students to be needing financial support when it comes to taking care of their academic expenses.

If you are wondering whether taking a student loan for studying abroad is worth it, then let us look at the following factors to find out:

You do not have to touch your savings - 

Without a student loan, it is quite a struggle in paying off the term fees of the university every semester. You have to constantly keep worrying about the finances, which would ultimately put a strain on your academic performance as this would affect your focus. However, with a student loan for studying abroad, you do not have to worry about any of this. Most banks provide 90% coverage for your academic expenses.



You could also choose to go with a Non-Banking Financial Company (NBFC), as the NBFCs are known for providing 100% financing. This means that they would cover the entire expenses of your academic as well as non-academic expenses. These expenses include your semester fees, study material, library fees, laboratory fees, travel expenses, accommodation expenses, etc. This makes your life much easier, as you do not have to worry about arranging the finances and can easily concentrate on your studies.

You can get a student loan without providing collateral - 

You are probably worried about taking a student loan for studying abroad because you think you might have to provide collateral to the banks to get the loan approved. It’s true, most banks do ask for collateral if you are applying for a loan of more than Rs.7.5 lakhs. 

But do not worry, you can also get a student loan without providing collateral.
If you have a problem with providing collateral, then you should think of taking a student loan from an NBFC. This is because NBFCs have no collateral requirements. You can easily get an unsecured loan with no hassles at all!

You can build your credit score -

Any borrower will know the value of a good credit score. Financial institutions will always check the credit scores of their applicants before they provide a loan, and this applies to any kind of loan. This is why borrowers should always maintain decent credit scores in order to get loans easily.

If you are taking a student loan for studying abroad, it is very likely that this is the first loan that you are applying for. This is a great way to boost your credit score. Make sure you repay the student loan on time without any delays, and this will help improve your credit score.

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

 Related Blog:- Benefits that a student loan should provide.

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