Pursuing their higher education abroad is a dream for a lot of Indian students. However, when it comes to the financial aspect of it, realising this dream can become challenging for many. Whether you plan to study in Canada, the UK, or the US study loan is one of the most convenient and flexible ways to follow your academic aspirations. Student loans for studying abroad bridge the financial gap and make quality education more accessible for deserving students.

Today, there are several financial institutions in the market that offer a variety of education loans for students to study abroad. This makes it vital for you to be able to choose the right type of education loan for your studies, based on your requirements. Here are some important factors that you need to keep in mind for choosing the best overseas education loan:

Compare Rates of Interest

The interest rate that a financial institution charges on an education loan has a significant impact on your repayment terms and the overall cost of the loan. Even a small difference in interest rate can change the repayment amount, which is why you must compare the interest rates offered by different lenders. Whether you are availing an unsecured loan or a secured loan will also impact the interest rate. You must also have an understanding of fixed and floating interest rates and confirm which of them is being offered by the lender.

Repayment Options

It is important to look for lenders who offer flexible repayment options. Check the flexibility offered by different lenders in terms of loan tenure and if the offered tenures align with your financial plans. You should also look for moratorium periods and grace periods that allow you to delay repayment until after you have completed your studies. Another important aspect that you should look into are the prepayment fees or penalties charged by the lender.

Coverage

Many lenders offer student loans for studying abroad that cover not only your tuition fees but also other related expenses, like health insurance, living costs, study material costs, etc. You should find out if different lenders have loan limits that can cap the maximum amount of money you can borrow under your student loan.

Additional Charges

You must keep an eye out for any hidden fees or charges levied by the lender. Put in due research and compare the processing fee, loan application charges, and any other fees that lenders apply on a student loan, so you can make an informed decision. You should also confirm if the student loan that you are considering availing has pre-visa disbursement or post-visa disbursement and if the lender charges a fee to change from post-visa to pre-visa disbursement.

Use an Online EMI Calculator

Online tools, like an EMI calculator, can make it easier for you to understand how much a student loan will cost you in the long run. Before you can choose the right borrowing scheme, it is important that you have a thorough understanding of what each scheme entails.

Lender Reputation

It is crucial that you borrow from a well-reputed and trusted financial institution. Research different lenders and check their track record, credibility, and financial standing in the market before making your decision. Ensure that the lender has a strong customer support infrastructure and go through the lender’s reviews to get a better idea of the experience you can expect.

As long as you put in due thought and research, choosing the right overseas education loan does not have to be too complicated.