How to Get Student Loans for Studying Abroad?

Studying abroad may be a life-changing choice, and certainly not a simple one. Many that wish to seek higher education internationally but find it impossible to have funds available now have the possibility of making plans to finance their education. The saviour is a student loan! A student loan covers expenses like tuition fees of the university, accommodation charges, books and stationery, examination fee, airfare and other daily requirements etc. It's time to stop worrying about expenses and start working hard towards your future.

1. Why Consider Student Loans?

Student loans have made the aspirations of higher education feasible for many students over the years. High expenses of quality schooling are rarely covered by grants and family contributions. That is why a student loan is a necessity that one should consider having a smooth study abroad experience. When you choose the student loan path, you can experience these benefits from credible loan providers:

• Tax benefits
• Competitive rate of interest
• Up to 100% finance surety
• Pre-approval before admission confirmation
• Online application comfort
• The convenience of doorstep service

2. How to Apply for Student Loans?

The first step in the process of applying for a student loan is to first verify your eligibility for various loans provided by different lenders. Once, you have found out that you are eligible for the loan that best fits you, you then need to finalise the loan.

The next step is to fill out the student loan paperwork as well as the related documentation. This is a critical move, since some discrepancy here may contribute to the refusal of the applicant for a loan.

Students applying for loans from a private bank would have their records collected by the Relationship Officer of the bank. If the student loan has been taken from the NBFC, the student will send his/her records directly to the lender.

After the paperwork and the application have been received, the bank will evaluate the application for a loan and approve the loan if the application satisfies all the conditions. If the proposal has been sanctioned, the borrower and the co-applicant must accept the loan offer and, if any, incur the relevant processing charge. If the loan agreement has been ratified by all sides, the bank will then disburse the loan.

Applying for a student loan can be a cumbersome process. However, when there’s a will there’s a way! UniCreds recognizes the challenges of taking a study abroad loan and has taken it upon themselves to combat this age-old problem for students looking to study abroad. UniCreds has a dedicated team of seasoned education loan counsellors, who make the entire loan process a kid’s play.

A few tips that are surely going to work for you when you apply for the loan are:

• Don’t forget to check whether the course you're going for is accepted by the banks or not.
• Find out how much loan you need and how much you're able to fund on your own.
• Compare the student loan issued by various banks to study abroad, and select the one that better suits your needs.
• Size up your living expenses. What kind of accommodation and lifestyle are you planning to go ahead with? UniAcco is a cross border student accommodation platform with 5,00,000+ beds in over 1,500+ properties. Get assistance with your student accommodation abroad as easy as 1-2-3.

3. How to Increase Your Chances of Securing a Student Loan?

A variety of factors affect whether or not a student will receive a student loan or not. However, there’s always scope for you to ensure that you maximize your chances of getting a student loan.

• Have an excellent academic record

A student's academic performance record plays a very critical part in the sanctioning of a student loan. Meritorious students with an outstanding academic record are passionate about their career and thus have a greater chance of being well-paid in the future.

Despite the prescribed cap, you must carefully measure your projected costs and apply for an amount that would meet all your requirements without being a financial strain in the future. When considering the cost of the student loan, you must remember the income that you plan to receive following the completion of the course, since this would have a direct effect on the willingness to repay the loan.

• Have a stable credit score

Credit score plays a key part in deciding whether a student should be given a student loan. Timely payment of credit card payments and EMIs on current loans impacts favourably on your credit report and tends to increase your odds of receiving a student loan.

• Keep in mind the value of the collateral

Education loan lenders normally request collateral for loans in excess of Rs. 7.5 Lakh to minimise their risk. In the event that the applicant failed to repay the debt, the collateral shall be used to reclaim the balance of the loan. Applicants offering high-value collateral have a higher probability of receiving student loans.

4. Are Loans Your Only Option?

While most think that student loans are the last option, there is more to fund your study abroad. This is where scholarships come into the picture. A number of top universities, countries around the world offer scholarships to international students. The scholarships are given on the basis of need or merit and can either provide either full or partial living expenses.

On UniScholarz, you can find the most popular international scholarships in the world listed all in one place. With over 300+ scholarships to choose from, you can apply to any scholarship you like, free of charge! Whether you are looking for a Bachelor’s, Master’s or PhD scholarship, you can find all that and more.

Open your mind to a new whole world by studying abroad – learn, experience world-class education and develop a global perspective!