Things to keep in mind before taking a loan for study abroad

A lot of students move abroad for their further studies in order to access a higher standard of education and better job opportunities. But moving abroad for your further studies would obviously be a more expensive alternative as compared to going to a local university. What most students do is take a study loan to take care of their expenses.

But you have to think a lot before taking a study loan too. It is not as simple as just searching for “study loans for abroad” and choosing the first option you come across. There are certain things you need to know before applying for a loan.

Here are some factors that you should keep in mind before applying for a study loan:

Focus on the loan amount

Before you search for “study loans for abroad”, you need to know the exact loan amount you will be needing. Once you are clear about how much you need, you will know whether you can accept what the lender is offering you. Since you are looking to pursue an education abroad, you will have to calculate how much you are going to spend in that specific country’s currency. Start by summing up all the finances you will need for your travelling costs, room rent, food expenses, tuition fees, expenses for your books, etc.

Inquire about the collateral

This is something that is very important. Since we are talking about an abroad education, it is understood that you are going to be needing a big loan for your academic expenses. This is where most students face a problem with the banks, as most of these lenders make it mandatory for the applicant to provide collateral if they need a loan amount which is above Rs.7.5 lakhs. 

This is an amount that will easily cross when it comes to studying abroad. But do not fret, as banks are not the only option you have. When you search for “study loans for abroad”, keep an eye out for Non-Banking Financial Companies (NBFCs), as they are lenders who not only provide unsecured loans but even provide 100% financing. This means all your expenses, academic as well as non-academic, will get financial support.

Always keep basic documents ready

Now each lender may have their own requirements when it comes to the documentation process. Before you search for “study loans for abroad” and start applying for a loan, check with the lender about the documents you should have with you in order to avoid any kind of complications. 

You can play it smart and keep certain documents that you know any lender will require, for instance, your passport photographs, bank statements, address proof, identity proof, offer letter from the university that you have been admitted to, and your marksheets. A lot of students face problems with a lender’s documentation process, so it is always good to be efficient and avoid any unnecessary problems.

We hope this article has helped you, all the best!

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