Education loan for studying abroad have several myths. The aspirants with student loans can afford a high-quality education. However, if not picked carefully, they can quickly turn into a liability. You can make the best choice and save a tonne of money by learning everything there is to know about student loans. To learn more, keep reading!
Many students want to attend prestigious institutions in their home country or abroad. However, they worry about how they will pay for their higher education. You can choose wisely about courses. However, a lot of kids’ hopes of attending college are made possible by student loans. Yet, there is some concern about student loans. Studying abroad gives you the best scholarship option. You can get a fee reduction in abroad colleges.
These student debt fallacies cannot be debunked with the available knowledge. Moreover, when you are attempting to decide how to pay for your school the most efficiently, they might skew your decision. These are 9 widespread misunderstandings about student loans that we will dispel. You can get the best study abroad consultants in Delhi for more information about student loans.
Things To Learn About Education loan for studying abroad
1. You Can Never Pay Off Your Loan
This is one of the leading fallacies that discourage many students from applying for a loan. Indeed, student loans have significant value, and repaying them may seem expensive. Yet there are numerous ways to repay your student loans after you graduate.
You can refinance your loan or switch to an income-driven repayment plan once your schooling is complete. If you are good at your studies, you will get a scholarship.
2. You should take out all the loans you can
Borrowers frequently commit the error of taking on excessive student loan debt simply because they can. Taking out a sizable student loan to pay for your education is a safety net while you go through college.
Yet, once you finish your degree, it can grow to be an impossible sum. Make a precise estimate of the overall costs associated with your college course before applying for a student loan. You have the support of the study abroad consultants in Delhi to learn about the loans available.
3. Always choose a student loan with low-interest rates
Loans with lower interest rates are preferred. One widespread misconception about student loans is that lower interest rates are always preferable for you.
The low-interest rates may give the impression that your payback fees will only add up to a little. However, as per the best overseas education consultants in Delhi, it is crucial to consider how long the loan will take to pay off.
4. If You Do Not Have A Good Academic Or Collateral Record, You Will Not Get A Loan
It is a fallacy that the only factors determining whether you qualify for student loans are your grades and if you have loan collateral.
Your application for a student loan is more likely to be approved if you have solid academic credentials and collateral. You shouldn’t give up even if you don’t have a stellar academic record or loan collateral.
5. Using Personal Savings Instead Of Taking Out A Student Loan Is Wiser
The high value of student loans typically discourages people from wanting to take on such a large amount of debt. If you have the means, self-financing your education might seem the greatest choice, but most students still need to do so.
6. You don’t have to worry about loan repayment until you graduate
One student loan fallacy that needs to be dispelled is that loan repayment only begins after graduation. Once you graduate from college and find work earning money, a lender might give you the choice of making a payback. Yet, that only implies that you are exempt from payment after graduation. You can get information from study abroad consultants about scholarships.
7. Income-driven Loan Repayment Reduce The Costs Of Repaying Your Debt
With an income-driven loan repayment plan, your monthly loan payment is adjusted in accordance with your income. Although it is a decent alternative for paying off student loans, it is definitely not the greatest.
Moreover, the amount of student loan interest really rises over time under an income-driven repayment schedule. The monthly loan repayment amount is reduced in exchange for a more extended payback period.
8. The Loan Interest Rates Could Continue To Vary
Although interest rates change over time, you won’t be charged according to them. When you apply for a loan, you consent to a specific interest rate. And the agreed-upon loan interest rate will be followed by your payback.
9. You Must Fully Adhere To A Loan Service Provider’s Advice
The idea that your loan counselor is the only person who can help you choose the optimal strategy is one of the biggest myths surrounding student loans. During student loan applications, loan advisers offer assistance and make helpful recommendations. However, following their suggestions blindly is not wise because they could not be the finest ones for you.
Conclusion
Banks have no restrictions on how much money they can lend to students who desire to study abroad for their higher education. From bank to bank, it varies. Almost all banks provide loans up to INR 20-30 lakhs. Moreover, the interest rate rises if the loan exceeds INR 20 lakhs.
If you need detailed criteria, follow the page of admissify.com. You may call on the number to simplify the path of moving abroad.
FAQs
Can I get a loan for studying abroad without collateral?
Yes, some financial institutions offer unsecured loans specifically for studying abroad, eliminating the need for collateral.
Is there a loan option for Indian students wanting to study abroad?
Yes, there are education loan options available in India for students who wish to study abroad. Various banks and financial institutions offer such loans.
Does the Indian government provide education loans for studying abroad?
Yes, the Indian government offers education loans for studying abroad through the Indian Banks’ Association (IBA) and various schemes like the “Vidya Lakshmi” portal.
Which bank is the best for education loans for studying abroad?
Several banks in India provide education loans for studying abroad, including the State Bank of India (SBI), HDFC Bank, ICICI Bank, and Punjab National Bank (PNB). Each bank has its own terms and conditions.
Can international students get loans for studying abroad?
Yes, some financial institutions offer loans specifically tailored for international students who wish to study abroad. These loans may have specific requirements and conditions.
What is the interest rate for education loans for studying abroad?
The interest rates for education loans for studying abroad can vary depending on the bank and the specific loan scheme. It is advisable to check with different banks to compare interest rates and terms.
Is there a list of universities abroad eligible for SBI education loans?
State Bank of India (SBI) provides education loans for studying abroad. They have a list of approved universities and institutions that are eligible for their education loan program.
Can I get an SBI education loan for studying abroad without security?
Yes, SBI offers education loans for studying abroad without the requirement of collateral or security. However, they may have other eligibility criteria and conditions that need to be met.
