- Monday, August 24, 2015
Universities around the world continue to raise their tuition fees but that does not deter passionate students from India realizing their dreams by securing admission in one of the universities abroad.
Remember that your study abroad experience is a lifetime investment and for most, taking out a student loan is the only way to make their dream a reality. Most educational loans will cover your tuition fees, board and room fees, health insurance fees, transportation fees, living expenses, books and any other supplies. At the start of each year or semester, the bank will directly send the money to the university account.
Here are 7 essential guidelines to be followed as you apply for a student loan –
1. The moment you get the admission letter from the university, apply for a student loan as the processing may take a while. Even before this, research your loan options.
2. Compare interest rates offered by various banks and other loan providers well in advance. Rates vary with different providers and comparing loans will help you identify an entity offering lower interest rates. As a general rule, state run banks offer lower interest student loans as compared to the private banks.
3. Are you eligible for student loan? This is an important first question you must ask yourself. Here again, eligibility criteria varies with different banks. Shortlist banks after you check for eligibility. Find out which are the programmes that are covered by banks. Usually, English language and other short term courses and vocational courses are not covered.
4. In advance, get in touch with a couple or more shortlisted banks and find out about the papers you require in order to apply. Get all the necessary documents and papers ready for the application. Certain universities have tie-ups with certain banks. Find out if the university you have chosen has any such deal as this will make the processing faster. Even as you apply to a university, check out if they are associated with any bank in your country and start the loan application process with that particular bank to make things easier.
5. Most banks or student loan institutions will require a standard set of documents such as –
Identity proof like pan card, passport, driving license, signed verification letter from a recognized public servant or public authority and voter’s identity card. For address proof, you will have to keep any of the below mentioned document ready –
• Telephone bill or electricity bill or water bill
• Voter’s ID
• Aadhar card
• Ration card
• Bank account statement
• Government issued allotment letter
6. After you get the student loan, there are certain things you must do. After your student loan is approved, it is time to rejoice. Before you do so, however, you must carefully go through the fine print. Some of the aspects you must check for in the document include pre-payment details, interest structure and an option to extend repayment in case of delay in finding employment. Understand all the listed clauses carefully and have a clear idea about the entire loan process.
7. Last but not the least, if you get a lucrative part time job you can start repaying the interest amount each month to ensure it does not build up to a huge amount. This way, you can greatly reduce the burden.
These are a few essential aspects to understand with clarity before you apply for student loan. For more information and guidance on student loans for Indian students, contact our professional counsellors at overseas consultants. We are here to take you through the entire process, helping you get your necessary documents together and get that loan you desperately need to fulfill your dreams.
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