5 features that make for the perfect study abroad loan.

A study abroad loan is like a god-sent financial tool for those who have their eyes on an overseas education but lack the financial backing to cover the cost on their own. These financial aids offer to bridge the funding gap, so you can take the leap and fulfill your further education dreams.

You don’t have to sell or liquidate any of your assets or those of your parents, nor do you have to depend on family, friends or relatives for the funds. Just apply for a loan, get the funds you need and focus on your education. This makes the choice of going for an education loan for abroad studies a wise decision. But to ensure you get the perfect financial tool, this article will highlight some vital features of a comprehensive overseas study loan.

1. 100% financing.

The first thing you should look for in a study abroad loan is 100% financing. The loan should take care of the entire course fee and no require you to provide any margin money or down payment. This allows you focus on more important things than arranging the token amount to pursue your dream education.

2. Study abroad loans with ‘proof of funds’ feature.

Some countries and universities require you to have a minimum balance amount in your bank account. This amount is usually a sizeable sum of money and arranging for this can become quite difficult. However some education loans come with the ‘proof of funds’ feature that can be very useful in such a scenario.

It provides you the required amount in your account to provide proof of funds when you are applying for visas or a certain universities. This ensures all the formalities move on smoothly and don’t get stuck due to lack of funds.

3. Bridge loans.

Apart from the main loan itself, some lenders offer what’s known as a bridge loan. The amount provided under this loan can be used to take care of expenses related to GRE/GMAT/SAT entrance exam fees, the cost of applications to universities abroad, living abroad expenses, the cost of books, computer and other educated related expenses. It ensures you never fall short of funds and never have to worry about arranging funds during your course.

4. Score based benefits.

If you have a good academic record, you should look for a study abroad loan with score based benefits. Most lenders provide preferential rates, higher loan amounts and unsecured loan options if you have a good academic record or a high entrance exam results.

5. Fast track loans.

This can be especially useful when quick funds are required for your admission process. The last thing you want is for your admission process, which is going smooth, to get hindered due the lack of funds. These loans ensure you are never left waiting for sanctions when time is of the essence.

6. Low interest rates & charges.

Some students look for low interest rates right at the onset, ignoring all else. However, you should first look for loans that provide you the financing you need and then compare them by the interest rates. While comparing rates, also compare the number of charges and their extent. Most importantly, compare the processing fees, some charge up to 2% of the loan, some waive of the cost all together.

So there you have it, 6 features that make for the perfect study abroad loan. We hope you found this article helpful, good luck and all the

Want to avail a study loan? Follow these simple parameters…

Higher education loan offers financial help to millions of aspirants around the nation who have the drive and the necessary qualification; however, they struggle to pursue it because of lack of funds. As costs of education keep soaring high, higher education loan comes as a blessing in disguise to finance the dreams of such students. Just like any other loan, these loans are given once the borrower meets all the parameters and eligibility criteria. Since these loans are offered to students they come at concessional rates and need minimal formalities to be completed for quick and instant approvals. The main ideology behind this is that no deserving student should be denied an opportunity to fulfill their dream for higher studies due to insufficient finances

Let’s look at some of the parameters to avail higher education loan:

Eligibility Criteria

Although, lenders are willing to approve your loan there has to be certain parameters based on which you will be granted a loan. These are your student's academic score, parent/guardian credit score, course details, the country they wish to pursue higher studies, the currency rate, and collaterals you can keep. After thorough evaluation lenders will offer you a particular loan amount.

Loan Amount

When it comes to borrowing study loan be clear about the amount you need. Because taking additional money would only mean you have to keep paying more to the lender. Ideally, your higher education loan should cover our expenses like tuition fees, exam fees, lab and library fees, caution deposit, travel, books and equipment, projects and study tours. So, sit with your loan expert and discuss thoroughly the financial requirements and then apply for a particular loan amount.

Interest Rate

Leading private finance companies offer higher education loan with interest rate as low as 12.75 to 13% with a nominal processing fee of around 1-2% on the loan amount. Private lenders are more concerned and offer speedier loan approval process. They come up with unique and friendly solution for customers such as Pre-Visa Disbursement Loan, Pre-Admission Loan, Certificate of Availability of Funds, GRE score based loan, Bridge loan, fast-track loan etc. which cater exclusively to students' financial need and set them free from any form of obstacle in their path for career development.

Loan Repayment

For loan repayment, a window of around five to ten years is given to candidates. There is also a provision of the grace period for one year (or six months) after the completion of studies. Private firms come up with flexible repayment options such as EMI payment course, the Interest servicing during course & the partial interest servicing during course, EMI repayment Post-Holiday /Moratorium period and Step Up repayment facility. You can see which one fits you the best and decide the repayment as per your flexibility.

Experts say it would be better to live a sedentary lifestyle and opt for a part-time job to accumulate money for easy loan repayments. If you start making interest payment from the day you avail loan it will help you make easy repayments and save significantly on your loan amount.