Study Abroad Loan

These days, getting an international degree is a dream for many students. Unfortunately, lack of funds cut these dreams directly from the roots. This is where a study abroad loan comes to save the day! Many banks and non-banking financial companies (NBFCs) offer study abroad loans to make the dreams of these students come true.
A Study Abroad Loan is a loan that is provided by a bank or a non-banking financial company (NBFC) to help students pay for graduate degrees, post-graduate degrees, PhD's, diploma courses, several vocational courses and the expenses that are associated with them like accommodation fees, books and supplies, travelling fees, etc.
The benefits of a study abroad loan are:   
1)     Some lenders provide good deals- Many people are reluctant when it comes to taking a loan, for obvious reasons. A loan is a huge responsibility. If you do not pay it back on a timely basis, you can be heavily charged. However, there are also quite a few benefits to study loans. Education Loan in India offers various provisions and deals that make them easily affordable and manageable for students who are planning on studying in an international university. Study abroad loans offer lower interest rates than other types of loans, easy and flexible repayment options, and a lenient moratorium period.

2)     A study abroad loan is flexible- Unlike other non-education loans, study loans are incredible flexible when it comes to the repayment and interest rates and have more manageable terms and conditions. Both federal and private loan providers understand the dreams of students who want to go abroad. Federal loans are loans that are offered by the government. They are the most flexible of loans and are decided according to the financial need of the student. Almost every student who wants to go abroad is eligible for at least some funds. Federal loans also have low fixed interest rates. Private lenders are not as flexible as federal loans; but they are still more flexible than other types of loans. The amount you receive from a private study loan lender is decided based on your or your co-applicant’s credit score. They do, however, offer lower interest rates than a normal study loan and they include deferments so that the student can postpone paying off the loan until after they have graduated.


3)     Incentive programs provided by banks and non-banking financial companies- Banks and non-banking financial companies (NBFCs) give incentives to the borrowers. Some of the incentive programs are:
-         Automatic payment plans means reduced interest rates over time. If you opt for a plan that directly cuts the EMI out of your bank every month, then you are eligible for a reduced interest rate.
-         There are no penalties or fees if you repay the loan before time.
-         If you have a co-applicant, you might be eligible for a reduced interest rate given that you make the EMI payments on time for a couple of months.

4)     Build your credit with a study abroad loan- Taking a study abroad loan is a major decision and it might be stressful at times. It is also perfect if you want to build a rock-hard credit score. If you keep up with all the payments, then you have all the ingredients for building a great credit history, which proves to be beneficial when you are looking for a job or a home.

Taking a study abroad loan is a big decision and should be made with careful understanding of what a study abroad loan is and thorough research about the different banks and non-banking financial companies (NBFCs) that offer it.

We hope you got some clarity about the details of a study abroad loan and we hope you get into the University of your Dreams!

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