The top advantages of an education loan abroad


The top advantages of an education loan abroad

Education loans work as an aid to those who dream big and want to reach great heights in their careers. With the world advancing, the idea of studying abroad has become common among students across the world. Students now openly ask and discuss the importance of studying abroad and its importance for their professional growth. Studying abroad is like a platform where a person will get enough opportunities to shape their career along with their personalities.

The limited finances at their disposal become a hurdle for students planning to move abroad. This is the situation when taking out an education loan enters the picture. Education loans will not only be helpful in managing expenses but also in thinking freely about college and other important things rather than just arranging funds.

What are the benefits of taking out an education loan?

This is the most common question that comes to mind for every student looking for ways to arrange funding for their overseas studies. Many students who wish to apply for an education loan are concerned about the loan's repayment all the time. The difference in currency value, fee structure, and accommodation expenses at international universities add to the cost of an education abroad. Students have to pay a whopping amount for their education abroad; however, it is worth doing as it will be rewarding in the future for students. Abroad education is expensive, which can put a burden on the pockets of many students, and the expense is so huge that lakhs of rupees will be required. That’s why taking an education loan to study abroad has become a priority for students who wish to study abroad.

Benefits of a Foreign Education Loan:

In recent years, student loans have become a common source of funding for international students from India. There is a growing interest in and need for education loans for a variety of reasons, including the rising number of Indian students who intend to pursue higher education abroad.

Let’s check, apart from funding for education, what all benefits do foreign education loans cover:

All expenses are covered:

University charges abroad are enormous. It’s not just about tuition fees; there are other charges too. Apart from that, air tickets and living expenses are add-ons for a student. Keeping in mind these many expenses, students tend to take out education loans. An education loan for study abroad covers almost every necessary expense that a student might need to complete their education. This includes expenses like books, supplies, a laptop computer, transportation to and from classes, housing, food, and other necessities.

Financial Benefits: 

It is important to choose a loan scheme that will not only meet your financial requirements but also give you some benefits. There are various financial benefits that are of help to students and their co-applicants:

  • Interest rates: Banks and NBFCs have designed their loan schemes in a flexible manner with manageable interest rates. Interest rates vary from bank to bank; it’s up to students to determine which bank is providing them with a favourable interest rate. NBFCs offer unsecured loans, which is the best option for students who don’t want to take secured loans or have an average profile. However, the interest rate charged by the NBFC is according to the condition.
  • Easy repayment options: Banks have started giving elongated time periods to students to pay off their debt. The moratorium period is evaluated on the basis of course duration plus 1 year after the course, or 6 months after getting the job. In addition, with this one, you must repay the loan within a fixed period, as mentioned in the bank policy.
  • Tax Benefits: Under Section 80E of the Income Tax Act, it is mandatory for students who are paying interest or repaying their education loan to get a relaxation on the deduction of tax made on their total income. However, it is likely to differ according to different banks.

Pay after education:

Students do not need to worry about making loan payments while they are in school, so they are free to concentrate entirely on their academics. The fact that students can easily repay education loans once they have finished their studies is one of the primary benefits of these types of loans.

Build financial prudence:

Taking an education loan not only helps the student pay for their own education but also increases the chance of building a good CIBIL score. A good credit score is always taken into consideration by NBFCs or private banks for students who have a good profile and want to take non-collateral-based loans. A good credit score helps increase the chances of taking a large loan in the future.

Availability of countries and courses

It's important to keep in mind, while opting for an education loan, which university and courses a student wants to apply to. Banks have their own list of counties, universities, and courses for which they are ready to give loans, also based on the profile and academic performance of the applicant. Having an unconditional letter will be a great addition, as it will help students get easy approval of their loan application.

Stress Free:

The burden of organising funds, the strain on your family savings, and the requirement that you liquidate your investments in fixed deposits, mutual funds, or bonds will all be reduced thanks to the availability of an education loan, which will not only help the students' financial situation but also make them free from stress.

Enhanced visa approval chances:

Having an education loan to study abroad can positively impact your student visa application, and the chances of getting your visa rejected will also lessen. Since the education loan will demonstrate your financial readiness and ability to pay for expenses, you will get a visa faster.

With changing trends, students and their parents are not scared to take an education loan abroad. The benefits of education loans are not hidden from anyone. Despite certain obvious benefits, there are financial, psychological, and physiological benefits that an education loan provides. To get an education loan to study abroad, students must get in touch with the Education Loan Guru, as they can guide them through the process. Not only this, Education Loan Guru aims to simplify the loan application process for students aspiring to study abroad.

By Education Loan Guru