Things To Remember While Applying For Educational Loan To Go Abroad
Education loan is one of the most important and attractive prospect for the person who wants to do higher studies. Education loan is a financial support provided to everyone who is in need and those who fulfill the criteria given by the Banks by which person can fulfill their dreams. Students are only eligible for taking this education loan. This scheme of providing education proves to be a great support to the parents of the students who wants to fulfill their children’s dream. Education loan is given for the professional Studies.
There are few points which one should keep in his mind before applying for education loan, and it will also help you to understand the education loan better so as to choose the best scheme out of the available schemes of education loan in the market:
To apply for Universities in Abroad as well as in India: The applicant, who wants to apply for education loan, should first check their current available deposits / funds. To avail tax benefits, the eligible applicant should take the educational loan from any Approved charitable Institutes, Banks, and can also take education loan from any Financial Institute.
You should also know about the Eligibility Criteria:
For obtaining the educational loan from the Bank for completing professional studies you should know about Eligibility Criteria of Banks:
- The student applying for educational loan should belong to India.
- The foreign universities / institutions should provide you the admission slip or another proof which confirms your admission in the recognized institute.
- The admission shall have been secured through the entrance exam or by a set of selection process.
You should know about the terms of Education loan:
Before planning to start Education loan, you should know about the terms of Education loan such as; what will be the Interest Rate? What will be the period of repayment of educational loan which you are planning to take? You must know that how much time is required by you to get a job after your graduation and what will be the minimum expected salary that would be drawn to you soon after you are graduated.
It is obvious that after getting loan from the bank, financial Institute, or any charitable Institute, you have to repay the loan which you have taken after completing your studies. Suppose; if you have applied for educational loan for engineering studies, the period of completion for professional course is of 4 years, and then the repayment is to be done after 1 year of completion of your studies. So, repayment period starts after (4year course completion + 1year). You should take advice of your parents before opting repayment option. If you are planning to start the Simple Interest Payment / EMI / Moratorium, you should go for Simple Interest payment or Equated Monthly Installment (EMI) option in comparison to Moratorium because it will help you in reducing the Burden of Educational Loan till your studies get completed, whereas Moratorium adds to the burden of Educational Loan.
Before starting the procedure of educational loan, you should check all the expenses covered under Educational Loan, that whether your Educational loan covers your Tuition Fees, Expenses which are incurred by you when you stay somewhere, Expenses of study material (Books), your Insurance Amount and the expenses for travelling.
Before obtaining the educational loan you must also check whether you have sufficient security or not like: fixed deposit, house, non – agricultural land, flat as a support for getting educational loan from any Bank. The property that you showed as a collateral security for educational loan also gives you the guarantee of providing you with better rate of interest comparatively.