Salient Features to Look for in a Study Abroad Loan Provider

Salient Features to Look for in a Study Abroad Loan Provider

Blog Article

The increasing dependence on education loans for abroad has been a big benefactor that more and more lenders are offering greater opportunities and better terms. But among the choice of options, how should one go about choosing a lender? 



Evaluate available loan schemes and applicable interest rates

Before signing a loan application, it’s always good to compare different leaders and understand the available loan schemes. Evaluate the applicable terms, including the loan processing time, tenure, eligibility requirements, collateral required (if any), and any additional charges such as processing fees, late payment charges, foreclosure terms, etc. It’s also imperative to analyse the applicable student loan interest rates as it will significantly impact the loan borrowing experience.




Check the repayment flexibility and moratorium available

Consider loan options that offer greater flexibility in repayments, as it can be quite beneficial during the initial phases of careers. Typically, several banks and NBFCs offer a longer tenure. Lenders such as Avanse Global offer more flexibility in repayment options, offering a bigger loan repayment tenure. Additionally, education loans have a moratorium period, allowing students to settle into a job after their education. The moratorium period typically lasts up to 6 months or 1 year after course completion or 3 months after the student secures employment - depending on the lender.  

Consider the loan coverage

Educational costs go beyond the basics, and expenses such as travel, accommodation, food, books, learning materials etc can easily accumulate over time. Therefore, it’s important to develop a comprehensive plan detailing any expenses. This helps streamline the application process and also allows borrowers to choose a lender who can fulfil their requirements. Different banks and financial institutions have a set limit to the education loans they offer. This limit is influenced by the borrower’s eligibility, co-borrower’s credit limit, repayment capacity, educational course and student’s academic record, loan tenure applicable and currency exchange rates. Prefer lenders who provide zero forex exchange terms to save on your precious dollar money.

Choosing the right education loan provider requires a thorough analysis of your requirements and researching applicable terms from different lenders to get the best terms possible.