Studying in a foreign country does work wonders for the students and their careers, but the issue of finance hits most international students. Fortunately, there is a way to relieve the burden through taking an education loan to study abroad. In this article, we will explain why it is wise to take an education loan to study abroad, the available loan options, the qualifications needed for an education loan, how to get an education loan, and how MetaFinance can help you get the best solution.
Types of Education Loans
When it comes to funding your overseas education, there are two main types of education loans available:
Secured Education Loan: A secured loan comes with security in the form of property, Fixed Deposits (FDs), or any other form of security. The interest rates on secured loans tend to be more favorably positioned than those on other loans; hence, they are more affordable for students who have security tools to offer.
Unsecured Education Loan: An unsecured loan is one in which the student does not need to offer any other property as security, and hence, more students can get it. However, such loans have relatively higher charges in terms of interest, given the fact that they are relatively risky to be offered to the borrowers. They are particularly suitable for clients who have no collateral to offer but are academic or have admission to a reputable school outside the home country.
Requirements to Get an Education Loan
Applying for an education loan to study abroad has specific requirements, which vary by lender but generally include the following:
Proof of Admission: To qualify for approval, most lenders usually demand an admission letter from a recognised foreign institution. It makes lenders trust the fact that the student has a genuine reason for requesting the loan.
Co-Applicant: It is necessary to meet a co-applicant, as a rule, a parent or a guardian for both secured and non-secured loans. The co-applicant offers an additional guarantee to the lender by providing a good application.
Academic Record: Education success may work in your favour and help get your loan application approved. To top it up, some lenders give lower interest rates to students who score higher academically.
Collateral (for Secured Loans): A condition for securing a secured loan is that you have to deposit an asset of a kind that the lender prefers.
Income Proof: It may include the latest pay stubs, bank statements, or the Income Tax Returns (ITR) of the past two financial years.
How to get an Education Loan?
The process of applying for an education loan to study abroad is straightforward but involves several steps:
- First, the borrowers should investigate various kinds of loans and the rates, terms and conditions, and the ways the loan can be paid back.
- All the relevant documents must be ready, including admission letters, income statements, details of collateral (if any), and co-applicant information.
- Fill in the application form and send it together with the required documents. It can sometimes be done through the Internet. However, some companies may ask for a hard copy.
- Once submitted, the information provided here is reviewed by the lender before they validate all the information you gave.
Conclusion
Education loans to study abroad make it possible to get an education at some of the universities across the globe, thus making studying abroad a possibility. With this knowledge of the various education loans, their requirements, and how to go about applying, you can gain confidence in your quest to finance your education abroad.
MetaFinance provides detailed solutions for guiding you toward the best Education Loan as well as assisting you till the loan is obtained. Therefore, there should be no obstacles, financial ones at least, to achieving success in the academic environment of another country, and with MetaFinance’s assistance, this can start today.
Author: vaibhav mehta
Hey everyone! I am Vaibhav Mehta.
