Do you want to study abroad? Do not have enough finances to manage your living expenses and educational costs overseas? If yes, do not worry; a student loan will not stop you from achieving your dreams. This article solely talks about educational loans, their types and the pros and cons of availing them. So, without any further delay, clear your mind with study abroad consultants Noida to make a rational decision.
How to Get Student Loan?
The first question that might strike your mind when talking about educational loans would be is it applicable for everyone? Yes, anyone can avail of it. The condition being you should be a citizen of India and your parent or guardian must be present. Now that you know it can be availed of, the question arises is, who will give you the desired amount of money? Get to know about the same with study abroad consultants Noida by reading further.
In India, you can take an educational loan for any college that has been approved by the University Grants Commission, Indian Medical Council, and All India Council for Technical Education. You can get a loan from public and private sector banks, depending on your preference. Talking about private sector banks, ICIC Bank, Axis Bank, HDFC Bank, and many more are ready to lend. Public banks such as Bank of Baroda, Union Bank of India, State Bank of India, Bank of Maharashtra, etc are available to get money for overseas education.
If your interest is inclined more towards taking loans from international lenders, then it is possible. You must know these lenders only provide you with the required amount when you are shifting to a new country. This is for higher studies or enrolling yourself in job-oriented or post-graduate programmes such as MBA, MCA, and MS.
So, these are the two sources from where you can borrow the money if you are planning to study abroad, but the question that arises is, how does it function? Excited to know what the specifications are. If yes, read the paragraph below and clarify all your doubts with study abroad consultants Noida in detail.
How Does Student Loan Work?
It is obvious that if you are borrowing, you must repay it sometime, but before it, your loan must get approved by the bank. The concerned authority looks into a variety of factors such as location, university, course, and documents for agreeing. After your loan gets sanctioned, there is an interest along with the principal amount that you have to repay at the end. It varies from 7.5% to 11% per year. Apart from that, you have to repay it in a span of 5 to 10 years in equated monthly instalments. There is a wide range of terms and conditions along with which each loan comes, and it is a due request to go through every norm before deciding to take a loan.
Now that you have a brief about education or a student loan, it is time to dive deep and understand the pros and cons of taking the same. Only after going through each pointer in detail will you get an idea of what will work best in your case. Thus, do not waste a single minute and hop on to the next section.
What Are the Pros of Taking Student Loan?
There are many advantages you can experience when you decide to take a student loan, but all this is useful when you are well-versed in the language. If you do not understand the basics of English and are unable to communicate your thoughts, it seats you down in the last lane. Thus, do not take risks and make yourself confident with IELTS preparation Noida to see a drastic change in your personality.
Covers Wide Range of Expenses
A student loan does not only cover the expenses related to the course; it also includes tuition fees and other necessities such as the cost of buying a laptop, computer, books, and other expenses. Thus, it indicates that you do not have to arrange more money in order to pursue your studies; everything will be covered by a loan.
Helps in Visa Approval
Getting a visa is always challenging as there are many formalities you must go through, but when your application for funding gets accepted, it improves your chances of getting a visa. Thus, taking a loan in any way is super beneficial. If you want any help in getting your visa approved, consider taking help from study abroad consultants Noida for instant results.
Lower Interest Rates
One of the most significant advantages that you gain by taking a loan is that it comes to you at a lower interest rate. It means you can achieve your dreams at a low cost and can pursue your desired course from a reputable university and country of your own choice.
Gone are the days when the interest rate was booming high, and you have to think twice before studying abroad. Today banks offer lower interest rate that makes it possible for you to repay the loan without much stress and burden.
Boosts Career Opportunities
Suppose you take a loan from an international lender. In that case, there is a high probability that they might have connections and networks with good universities. It increases your chances of getting a high-paying job. It is an opportunity that students without loan-taking facilities may miss.
Now that you have seen the good side of taking a loan to study abroad, it is time to explore the roadblocks along the way.
What Are the Cons of Taking Student Loan?
Immerse yourself deep into the topic to know the harsh truth of taking a student loan:
The process of taking a loan is not like submitting one paper, and it will be provided in a blink of an eye. It is definitely not the case; there are many complex procedures and documents that you have to submit in order to crack the deal. Besides that, you may also be required to put your property as collateral in case of non-repayment.
It Requires a Guarantor
If you decide to choose an international lender, you have to choose a guarantor from the specific country or region where you are migrating. Thus, it is only possible for some and reduces your chances of shifting to a new country for higher studies.
Available for Limited Courses
Taking a loan is applicable for any course, but in most cases, you have to deposit a security in the form of property papers. There are limited options in which you can avoid risking your collateral, which is open to some. Thus, it becomes a drawback in many cases.
Unable to Change the Programme
The loan is money for a specific programme or course. There can be chances that while studying you will not enjoy and want to put yourself in another course. But in the end, you will not have a choice to shift because you will become restricted to one domain.
These are some of the disadvantages of taking a student loan. Thus, constantly research well and then come to a conclusion.
The pointers above talk about everything you should know about taking a student loan. Thus, never make a quick decision because, in the end, it is you who have to repay the whole amount. There is no point in regretting it later. Also, taking a loan works wonders when you study and make connections outside. It is possible only when you are good with English and can communicate your thoughts properly. Thus, without any second thought, go for IELTS preparation Noida to see a change in your language and morale. Take advantage of this opportunity because it will shape your future!