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Is Taking An Overseas Study Loan A Good Idea? – Abroad Studies
- December 7, 2020
- Posted by: Aradhana Pandey
- Category: Education
A lot of students move abroad to pursue their higher studies every year. Such a decision obviously requires a lot of thought since the expenses would get quite high, especially if we are talking about an education abroad. But keeping all this in mind, students still prefer to move abroad in search of better job opportunities, the standard of life, and so on.
To handle all their expenses, these students apply for overseas study loans so that would not have to worry about the finances. But is this taking an overseas study loan a good option? Let us take a look at 4 important factors that will help you decide:
You do not have to provide collateral
Many borrowers are sceptical about applying for loans simply because they are worried that they might have to provide collateral. But this is not the case for every lender. Sure, since we are talking about an overseas study loan which would most likely cross the amount of Rs.7.5 lakhs, the banks would require borrowers to provide collateral.
But banks are not the only financial institutions that offer study loans. You can also apply for an overseas study loan from Non-Banking Financial Companies (NBFCs) since these lenders do not require collateral from their borrowers.
You can get complete financing for your academic expenses
This is one of the best aspects of getting an overseas study loan. Usually, banks cover only a certain portion of your expenses and you are supposed to take care of the rest from your own pocket. But with NBFCs, you can get your entire expenses covered! This is because NBFCs also provide 100% financial coverage.
This includes academic expenses such as the cost of your books, library fees, tuition fees for every semester, and so on, and even non-academic expenses such as your travel costs, accommodation rent, daily expenses, etc. This proves to be a great deal since you do not have to worry about the finances at all!
You can choose from multiple repayment options
One of the most common fears among borrowers is whether they will be able to repay their loans. This is because there are many cases where borrowers have always struggled with their EMIs because they have been stuck with bad repayment plans. But this does not have to be the case at all. In fact, any good lender would offer multiple repayment plans to the borrower so that they do not have any problems in clearing their loans later.
You can improve your credit scores
We all need loans at certain points in our lives. Personal loans and home loans are much bigger amounts, but the first-ever loan that people take in most cases is a study loan. Of course, an overseas study loan would be much bigger, but repaying it on time would give a good start to your credit score. This will be beneficial for you since any lender will review your credit score before approving your loan application.
We hope that your article has helped you, all the best!