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 Education 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 Education Loan –
1. The
moment you get the admission letter from the university, apply for a Education
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 Education Loans as compared to the private banks.
3. Are you
eligible for Education 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 Education 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 Education
Loan, there are
certain things you must do. After your Education 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 Education
Loan. For more information and guidance on Education Loans for Indian students,
contact our professional counselor 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.
Source : http://www.thechopras.com/blog/7-essential-guidelines-to-follow-as-you-apply-for-student-loans.html
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