Studying abroad is a dream for many students, but it can be expensive. Education loans for abroad studies can help finance your education and make your dreams a reality. However, before taking out a loan, there are a few things you should know. In this blog post, we will discuss four things to know about education loans for abroad studies.
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Loan amount
The loan amount you can receive for studying abroad varies from lender to lender. Typically, lenders offer loans ranging from Rs. 20 lakhs to Rs. 1.5 crore for abroad studies. The amount you can borrow depends on various factors such as the country you plan to study in, the course you want to pursue, and the financial standing of your co-applicant, if any.
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Interest rates
The interest rates on education loans for abroad studies are generally higher than those for domestic education loans. The reason for this is that lenders view studying abroad as a riskier proposition. The interest rates offered by lenders range from 10% to 16%, depending on the lender and the loan amount. It’s essential to compare interest rates from various lenders and choose the one that offers the most favorable terms.
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Collateral requirements
Most lenders require collateral to secure the education loan for abroad studies. The collateral can be in the form of property, fixed deposits, or other assets. The value of the collateral should be equal to or greater than the loan amount. It’s important to note that the collateral requirement may differ from lender to lender.
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Repayment terms
Repayment of education loans for abroad studies typically begins six months to one year after the completion of the course or when the borrower starts working, whichever is earlier. The loan repayment period is usually between five and seven years. It’s crucial to understand the repayment terms before taking out an education loan in India and plan accordingly to avoid any financial stress.
In conclusion, education loans for abroad studies can help you achieve your dream of studying abroad, but they come with their own set of challenges. Before taking out an education loan, it’s essential to understand the loan amount, interest rates, collateral requirements, and repayment terms. Research various lenders, compare their terms and conditions, and choose the one that offers the most favorable terms for your financial situation. With careful planning and responsible borrowing, you can make your dreams of studying abroad a reality.
