Fund your foreign dreams
The Hindu
Tips for students who are applying for loans to study abroad
India has seen an increasing number of students going abroad for higher studies. Data from the Ministry of External Affairs shows that, till July 2019, more than one million students were pursuing their education in foreign countries. Apart from factors such as exposure to diverse cultures and better career prospects, the availability of loans has also helped students follow their dreams of studying abroad. For those considering study abroad options, here are few things to look out for when they are applying for loans: Different financial institutions have different terms and conditions for offering loans. Before choosing the loan provider, check whether you need a collateral for the amount or not, what the interest rate is and whether it is fixed or floating. Other aspects to consider are whether a co-signer is required, processing time, currency of borrowing, the costs the loan will cover and the fees and charges it will incur. Collateral loans are secured by an asset that is offered as security in case the borrower fails to repay. On the other hand, non-collateral loans are sanctioned on the basis of the borrower’s credit score and may require a co-signer. Students applying for a loan for an undergraduate programme may not have a credit score. Therefore, they will need a co-signer who has a decent credit score. It is not necessary for the co-signer to be related to the student.More Related News