Studying abroad is an incredible opportunity for students to upskill themselves, immerse in a new culture, and build a global career. But, many promising students hold themselves back because of financial concerns. By availing of education loans for study abroad, several aspiring students can attain their dreams of studying abroad without having to worry about finances.
However, choosing the right lender to provide an education loan for study abroad is imperative for a smooth study-abroad experience.
Leading study-abroad consultants like MSM Unify can help you choose the right lender for your educational journey. Nonetheless, if you wish to do homework on an education loan for studying abroad, read this blog by MSM Unify for some easy and handy tips.
Know the different types of education loans
First and foremost, do your research on the various types of loans available and be well-informed about their unique offerings.
Education loans are provided by several sources, such as public-sector banks, private banks, NBFCs (Non-Banking Financial Companies), and various international lenders. Also, educational loans are available with collateral (secured loans) and without collateral (unsecured loans).
With so many crucial factors to consider, securing an education loan for studying abroad is a tricky task. Expert study-abroad consultants at MSM-Unify can help you sail through these hassles and secure an education loan at an appropriate interest rate and from reliable sources.
Assess education loan interest
All education loans do not have uniform interest rates. An education loan for study abroad can be unreasonably pricey if the interest rate is higher. For this reason, it is important to fetch details regarding various education loans and assess their interest rates.
Another crucial aspect you must check is whether the education loan is fixed or floating. A borrower with a fixed interest rate will need to pay the same amount every month. On the other hand, a borrower will need to pay the monthly amount based on the current interest rate.
Additionally, check if the lender is offering any discount on the interest rate or a tax
rebate under Section 80E of the Income Tax Act to bring down the overall loan amount.
Know the loan tenure and moratorium period
Education loans for study abroad offered by different lenders are likely to have different loan tenures and moratorium periods. It is crucial to know the loan tenure and moratorium period beforehand for efficient financial planning.
Education loan tenure and moratorium period will have a direct impact on your monthly expenditure. So, by knowing the moratorium period, during which you don’t have to make any loan repayments, you can plan for your job and budget in the meantime. By planning your budget, you will be able to handle loan repayments efficiently and lessen financial stress considerably.
Check for any additional or hidden charges
An education loan for study abroad typically includes additional charges such as processing fees, prepayment penalties, administrative charges, etc. So, your actual financial commitment includes all these costs along with the actual loan and interest amounts.
So, know these additional charges beforehand to make an informed decision and prepare yourself for the impending financial commitments. Also, some loans might include hidden charges. So, before you sign the education loan agreement, read the documents carefully to avoid the potential pitfalls and have a stress-free borrowing experience.
Assess their customer support service
To ensure a smooth borrowing experience, it is essential to assess the customer support service of various lenders providing education loans for study abroad. Throughout the loan tenure, there might be instances, when you need help with clarity on loan terms or any unexpected challenges.
Also, you might need a customer support service to modify your repayment options at a later stage. An efficient customer support service can help you combat these challenges and enhance your loan repayment experience.
These handy tips can help you choose the right lender for your educational journey and reduce your loan repayment hassles. However, with myriad options, choosing the right lender for your crucial study-abroad journey can be challenging.
So, if you have any doubts or apprehensions about securing an education loan for study abroad, feel free to reach out to MSM Unify education consultants today! Rest assured, with the expert guidance of MSM Unify Consultants, you can avail yourself of the best possible education loan option to meet your unique requirements.
