Universities
around the world continue to raise their tuition fees but that does not deter
passionate students from India realizing their dreams by securing admission in
one of the universities abroad.
Remember that your study abroad experience
is a lifetime investment and for most, taking out a student loan is the only
way to make their dream a reality. Most educational loans will cover your
tuition fees, board and room fees, health insurance fees, transportation fees,
living expenses, books and any other supplies. At the start of each year or
semester, the bank will directly send the money to the university account.
Here are 7 essential guidelines to be followed as you
apply for a student loan
1.
The moment you get the admission letter from the university, apply for a
student loan as the processing may take a while. Even before this, research
your loan options.
2.
Compare interest rates offered by various banks and other loan providers well
in advance. Rates vary with different providers and comparing loans will help
you identify an entity offering lower interest rates. As a general rule, state
run banks offer lower interest student loans as compared to the private banks.
3.
Are you eligible for student loan? This is an important first question you must
ask yourself. Here again, eligibility criteria varies with different banks.
Shortlist banks after you check for eligibility. Find out which are the
programmes that are covered by banks. Usually, English language and other short
term courses and vocational courses are not covered.
4.
In advance, get in touch with a couple or more shortlisted banks and find out
about the papers you require in order to apply. Get all the necessary documents
and papers ready for the application. Certain universities have tie-ups with
certain banks. Find out if the university you have chosen has any such deal as
this will make the processing faster. Even as you apply to a university, check
out if they are associated with any bank in your country and start the loan
application process with that particular bank to make things easier.
5. Most banks or student loan institutions will require a
standard set of documents such as –
Identity
proof like pan card, passport, driving license, signed verification letter from
a recognized public servant or public authority and voter’s identity card. For
address proof, you will have to keep any of the below mentioned document ready
–
•
Telephone bill or electricity bill or water bill
•
Voter’s ID
•
Aadhar card
•
Ration card
•
Bank account statement
•
Passport
•
Government issued allotment letter
6.
After you get the student loan, there are certain things you must do. After
your student loan is approved, it is time to rejoice. Before you do so,
however, you must carefully go through the fine print. Some of the aspects you
must check for in the document include pre-payment details, interest structure
and an option to extend repayment in case of delay in finding employment.
Understand all the listed clauses carefully and have a clear idea about the
entire loan process.
7.
Last but not the least, if you get a lucrative part time job you can start
repaying the interest amount each month to ensure it does not build up to a
huge amount. This way, you can greatly reduce the burden.
These are a few essential aspects to understand with clarity
before you apply for student loan.
For more information and guidance on student loans for Indian students, contact
our professional counsellors at overseas consultants. We are here to take you
through the entire process, helping you get your necessary documents together
and get that loan you desperately need to fulfill your dreams.
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