Planning to study abroad is a great start to jet-setting your ambitions on the international circuit, but then how to tackle the exponentially high tuition fees? Student Loans / Education Loans are the best options. Here are a few questions we are asked most of the times and we think, it is a good start to get them sorted here for your ease:
- Q1: Is foreign education possible and safe?Ans: It is natural to worry about studying abroad given the fraudulent practices some people follow. While the foreign education is getting easier to pursue we understand that the financial aspects involved make students and parents think twice before going ahead. Researchers have noted that the cost of education (in India or abroad) is getting expensive with a 15% rise each year. Here there is another difference. When the same rate is applied – In India your education could cost you around INR 5 to 25 lakhs, foreign education demands INR 30 lakhs and above. With the right financial guidance and loan provisions, this foreign education should not be so difficult to pursue
- Q2: Isn’t student/education loan expensive?Ans: Visualize this – You take a lump sum amount from your personal savings (student’s own or their parents’) which might be fixed deposits, mutual funds, PPF, ULIPs etc – what is left with you then? Such an arrangement does not leave any financial cushion for emergencies. With lack of contingency plan savings – your money is actually blocked out. With student/education loan; you need not touch your personal savings and have a better financial plan to remit the amount loaned after a certain period. This varies according to the banking partners and our financial expert will guide you in this process. Thus student/education loan isn’t a burden but a boon.
- Q3: Why are student/education loans better options than self-funding?Ans: There are various reasons for you to try out the education loan option rather than self-funding your study abroad dreams.
- Keep your fixed deposits, mutual funds, ULIPs, retirement fund and other savings intact which can be used for other emergencies. You can safeguard other expenses that might crop up unexpectedly.
- Upfront payments are demanded by colleges/universities in certain countries. In such a case, loans make it easier to do that same. Also the requirement of fund proof for 1 year of stay is a must, therefore, loans make it an easy proof to show. This is called the benefit of moratorium period which you get only if you choose the loan option.
- Easy Visa due to the regular flow of funds especially since government banks are looked upon as a reliable source of funding
- You get income tax benefits under Section 80E if you take up a loan from a gazetted financial institution like banks. Interest rate is also reduced with no upper limit to the amount availed and a good time period of 8 years for deductions
- With building of a robust credit history the repayment can be planned in a timely manner with compliance to the terms of repayment thereby enabling more funding options in future (advanced study)
- 04: Are there any eligibility conditions to procure loans?Ans: The college/university must approve of your admission with an admission letter thereby ensuring that the loan process begins. It goes without explanation that getting admission in a recognized college/university helps speed up the visa and also the loan disbursal process.
- Q5: What kinds of loans can one procure?Ans: There are two types of loans – secured student loans and unsecured student loans. The secured student loans take less time to process but require documentation and collateral processing. Repayment period is longer. Unsecured student loans do not demand any collateral but take longer to be approved and processed and the repayment time is shorter.
- Q6: What kind of bank tie-ups do you have?Ans:We are associated with numerous Indian and Foreign Banks that have robust centralized systems in place, Finance Companies that are approved by RBI, International Finance Institutions, Investors and university or government grants/scholarships as different ways of raising funds for your foreign education. Depending on the country of study, we factor in the best funding options available for loan procurement.
- Q7: Do you help with the IELTS and other coaching?Ans: We don’t coach students. What we definitely do is help get you the best guidelines of which coaching tests or subject combinations will work best for you in the particular university/college of your choice. Thereby, we actually provide educational consultancy or guidance on these matters but not ‘coaching’. We can suggest the best coaching classes that will understand your requirements.
- Q8: Which is the most sought after degree of study abroad?Ans: Don’t go by the popular flow. Choose subjects that best match your aptitude and interests. For informative purposes we can let you know that the most popular degrees are MBA and MS.
- Q9: You help in the study abroad dream of which countries?Ans: We broadly help all students who want to study abroad. Given the spotlight on a few countries more than others, if you are interested in studying in Australia, New Zealand, UK, Canada, USA then you should definitely meet us!
- Q10: What is the student loan process? Is a refinance option available?Ans: The following are the general steps for loan processing:
- You first need to check your eligibility for the different loan schemes offered by different sources as shown by Westend Consultancy. Our guidance counselor will help you first to match your subject/university preference and then connect with the finance counselor for your student loan eligibility. Here you will get a clear idea on the amount of loan they can get and also about the best loan options for them.
- A dedicated loan counsellor will assess your complete profile and then suggest the best options for student loans for studying abroad. Please note that the best loan options might differ from person to person.
- You now have to finalize the lender.
- After finalizing you will have to submit the student loan application as well as relevant documents. This is a crucial step as any discrepancies here can easily lead to the rejection of the loan application. That is why our loan counsellor will guide you at every step and also provide a customized list of documents that have to be submitted with the loan application. Depending on your residential area, we may assist you with your documents at your home itself.
- Once the documents and application have been submitted, the bank will assess the loan application and sanction the loan if the application meets all the criteria. Once the application has been sanctioned, the applicant and the co-applicant have to accept the loan offer and pay the relevant processing fee, if any.
- After the loan agreement has been signed by both parties, the bank will disburse the loan.
Refinance option is available if you want to study further. This is subject to the terms and conditions of the funding sources and best addressed with our loan counselor on a one-to-one meeting.
Have more questions? Get in touch with our guidance counselor or book an appointment with us at: