Studying abroad is not just about earning an international degree but is an experience of a lifetime. Global exposure along with a degree from a renowned institute abroad certainly has the potential to accelerate a student’s academic graph by leaps and bounds. Thus, making education in countries like the USA, Canada, Australia, the UK and Germany, a rage among Indian students.
In recent years, there has been significant growth among Indian students studying abroad. Reports suggest that over 5.53 lakh Indian students are studying in 86 different countries.
A promise of bright future and ample opportunities prompt Indian students to enroll them for several courses offered worldwide, but this journey is not a cakewalk. Opting for studying abroad comes with a whopping cost. Besides tuition fees, there are several other expenses like accommodation, travel, food etc. that are to be met by the students.
On most occasions, it is difficult for Indian students and their parents to meet the expenses and it’s when Student Loan comes to their rescue. Here we tell you how a Student Loan or Education Loan can support your dream of studying abroad.
What does a student loan cover?
A Student Loan covers the tuition fees along with other related expenses including books, transportation fees, health insurance fees, and accommodation.
Students applying for the vocational course, graduation, post-graduation or course in a foreign university is eligible for Education Loan. Most banks offer loans for long term courses by reputed organizations. Therefore, one of the foremost steps to take before applying for an education loan is to verify whether the course you are choosing is eligible for a loan or not.
Compare the Interest Rates
It is advisable to compare the interest rates of several banks before applying for an education loan. Also, you must apply in multiple banks so that you secure a loan even if your application gets rejected by one of them.
When applying for an Education Loan the student is the principal borrower with the parents as co-applicant or co-signer, who are liable to pay the debt if in any circumstance the student fails to do so.
As per the norms, 15% of the required amount is provided by the student and the remaining amount is financed by the bank.
Tax benefits are also allowed for students paying in interest on loans taken under section 80E of the Income Tax Act, 1961.
The loan has a moratorium period up to the duration of the course or up to the period until the student starts working, whichever is earlier.
This was an overview of how you can secure a Student Loan and give wings to your dreams of studying abroad. We suggest you keep a vigilant eye when going through the loan agreement and choose a plan that suits your requirements best.