Overseas Education Loan: Do’s and Dont’s

According to recent research, the cost of education in India is increasing every year by 25%. And when it comes to overseas education, the cost of education gets thrice. To fund foreign education, study abroad aspirants look for various options out of which an overseas education loan is the most preferred way used by the majority of the students to fund their higher education. There are majority of financial institutions in India viz nationalized banks, private banks, NBFCs, and international lenders that offer a foreign education loan for studying abroad.

Nowadays it is quite easy to avail an overseas education loan with end-to-end guidance from overseas education consultants and loan experts. However, it becomes extremely important to consider certain factors while availing an education loan.

Dos and Dont’s in an Overseas Education Loan

• Do - Choose the course with care

While availing a foreign education loan, it is important to select the right course as not all degrees will fetch students highly paying jobs. There are more job opportunities for those studying STEM programs i.e., science, technology, engineering and mathematics as compared to other humanities-related programs.

• Do – Ask your parent to check their credit score

While applying for an overseas education loan, your parent becomes the guarantor. Hence, it is necessary that your guarantor possess a good credit score in order to get the overseas education loan application sanctioned from the financial institution.

• Do - Consider the future salary expectations

Overseas education loan aspirants should calculate their repayment capacity on the basis of their future salary expectations. It is extremely important to consider this factor prior to avoid overburdening of the overseas education loan.

• Don’t – Opt for the course just because an education loan is available

Today, almost all the courses get an education loan but don’t join a course just because you are meeting the overseas education loan requirements. Do your research and think about all the perspectives before applying for an education loan in the bank.

• Don’t – Apply at various financial institutions at one time

Majority of the overseas education applicants apply for various financial institutions at one time. This results into majorly affecting their credit score history. Hence, it is advisable to the students to consult overseas education loan experts and get proper guidance before submitting a loan application.

• Don’t – Take a high loan amount if you have savings

If you have certain savings that can support your living expenses in an overseas institution or other miscellaneous charges. Don’t go for a higher amount for an overseas education loan as it will only increase the repayment. Try to borrow the loan amount that will keep your EMIs low and ensure timely payment after the successful completion of the program.

Do feel free to reach out to us if you pause at any step. We are the leading overseas education loan consultant, and we will be more than happy to provide assistance for overseas education loan process. So, what are you waiting for? Reach out to us now.