Why should you opt for Study Abroad Loan?

In today’s world education is perhaps the most expensive thing, especially

if one wishes to enroll for a higher degree in a premium institute abroad.

Education experts says every year around 1.5 lakh people from India on an

average look for information on getting Study Abroad Loan for pursuing

their higher studies. This clears shows the craze of going abroad for further

studies is spreading amongst most of the young Indian students of India.

Many post-graduate students from India are opting popular destination

countries like Germany, Canada, U.K. & Australia. France, Singapore,

Dubai, NZ etc. to pursue their higher studies abroad.

While India currency is pretty match battling around with dollars and

pounds, studying abroad becomes an expensive affair with the little

savings that parents have done for their children through limited incomes

sources. Students planning to study abroad are already in a soup because

the tragic devaluation of the rupee against dollars & pounds that has made

the course fee shoot at a rapid pace. But parents ensure that whatever is the

situation no stone is left unturned for their children safe educational future.

Therefore, more and more people are opting for study abroad loan for their

children so that they deserve uninterrupted path of pursuing their foreign

studies on time.

The cost to study in foreign countries varies, depending on the University,

course, duration and the cost of living of the country. Banks and private

sector finance firms understands the complexities of financing higher

education and hence come up with customized study abroad loan solutions

for students to help those much needy and brilliant minds to pursue their

higher education in the University and country of their choice.

While applying for Study Abroad Loan there are few things which

students need to be aware of to avoid any complications arising in the

application process and reduce the odds of loan approval.

•Eligibility: Loan is provided to Indian nationals for pursuing graduate,

postgraduate or other recognized courses from reputed foreign

universities.

•Expenses covered: The education loan covers fees payable, hostel fees,

library and exam fees, expenses for purchasing books and required

equipment like laptop, travelling expenses and any others as mentioned in

the university’s prospectus.

•Finance Limit: A maximum amount of Rs. 20 Lakh for studying abroad.

Or higher in special cases.

•Collateral Security: Parents/Caretakers are required to be joint owners as

a collateral security for loan repayment

•Moratorium Period: It would be the course duration including plus one

year or six months after getting a job, whichever is earlier

•Margin Money: 15% on the amount above Rs. 4 Lakhs, however, many

leading private finance firms come up with no margin contribution

•Tenure: 10 years

•Tax Exemption: Interest paid on the loan by students is exempted under

section 80E for a period up to 8 years.

Studying abroad in top universities is dream for every brilliant student. If

you’re not eligible for scholarships or you don’t have sufficient corpus of

your own it becomes difficult to manage the ever escalating costs which

includes tuition and other fees, air fare, library charges, hostel and mess

charges, cost of books and equipment, maintenance, caution fund/building

fund/refundable deposit etc.

More importantly it’s mandatory by foreign countries to display sufficient

proof of funds to pursue higher studies abroad. Educational Loan helps

you show the necessary proof of sufficient finances which can help you in

pursuing the course of your choice in the best overseas university.

Many private finance firms have come up with unique solution for Study

Abroad Loan such as Pre-Visa Disbursement Loan, Pre-Admission Loan,

Certificate of Availability of Funds (USA), GRE score based loan, Bridge

loan, fast-track loan etc. which cater exclusively for students’ particular

requirements and set them free from any form of obstacle in their road for

career development. Loans are a very simple way to finance education

abroad in a hassle free manner. The good part is these leading private

finance firms are offering rate of interest for the loan as low as 11.5 %. Loan

repayment starts six months after course completion and comes at flexible

repayment options to relieve you from any financial stress.

Source: (http://www.avanse.com/studying-abroad/)