Studying at one of the top foreign universities is often a dream for everyone. And everyone cannot afford the same, as education has become quite expensive these days. In such a situation, student loans for studying abroad can be a great blessing for you.
There are many questions that often come up when you are thinking of opting for an education loan for studying abroad. Here are some of your questions answered. So, without waiting any longer, let’s dive in.
Q: Is There Any Security Deposit Required For The Loan To Study Abroad?
The very answer to this question is ‘No’. No security deposit is required for getting student loans for studying abroad. But if it is a loan of higher value (more than INR 7.5 Lakhs), collateral security is required for sure. Collateral security resembles properties or LIC policies and so on. All these types of securities are to be provided on the student’s behalf. All these will be returned to the borrower after the terms of the loan are completed.
Q: What Is Margin Money?
In many financial institutions, for instance, when opting for student loans for studying abroad of twenty lakhs, they will be granted just fifteen lakhs on behalf of the institution. The remaining five need to be produced on the borrower’s behalf. This is the margin money. It varies from lender to lender. Yet, you can find many institutions that offer students the whole funding with all the fees included.
Q: Are The Current Interest Rates for Education Loans Fixed or Floating?
The interest rates for student loans for studying abroad are always floating. The usual limit of interest rates ranges from 11% to 16%. You may find most of the institutions offering a range of loans with 12.5 to 16% or 13 to 16% interest rates. You may rarely find low interest rates while dealing with big branded institutions, on a selective basis. But the rates always vary from institution to institution.
Q: How Do You Determine The Loan Amount For A Student? What Expenses Does It Cover?
The loan amount has to cover the tuition fees. Some institutions also offer loans that are inclusive of the student’s living costs. Generally, the financial institutions are well aware of the kind of expenses that are required for a certain period in a particular country and they also have an internal chart for it.
There is no reported upper limit for any course. And any institution will fund any course that the student wants to take up in any country. But this will only be done if they see bright future potential for the student after graduation. Student loans usually don’t have any particular limits. But the financial institutions will be wise when it comes to the upper limit depending on the course and the future prospects of the student.
Q: How Are Education Loans Disbursed?
For many institutions that have an active link-up with your preferred college, the loan is disbursed straight to the university depending on the requirement. Some students are even given their living costs directly in their personal bank accounts for convenience. And this process is generally maintained for most international as well as domestic applicants for student loans for studying abroad.
Q: How Long Can A Student Take To Repay The Loan?
Normally, when a student opts for abroad studies, the average tenure for loan repayment is about seven to eight years. It can stretch to a maximum of fifteen years for some banks. But usually, the loan is expected to be paid back within seven to ten years.
With the right information on student loans for studying abroad, you will be able to get the best loan offers for yourself. With the help of a third party financial institution, this process will be even smoother.