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One of the biggest financial issues that many students have is solved by getting an education loan. While receiving loan approval lessens the anxiety and worry associated with paying vast sums of money, students are frequently perplexed by the real loan repayment problem. Loan default is not an option because it lowers your credit score. Nevertheless, restructuring the loan is a simple solution to ease the financial load. This can be accomplished by refinancing the student loan, which entails replacing the current loan with a new one. What does refinancing mean? Refinancing student loans is just taking out a new loan at a different interest rate to repay the existing education debt, to put it simply. Refinancing is done to obtain a lower interest rate and further terms and conditions. Refinancing an education loan taken for studying abroad can be a smart financial move. It can lower monthly payments, reduce the overall interest cost and help you simplify the loan repayment process. In this article, we will go over the process of refinancing an abroad education loan and when it might make sense. https://www.youtube.com/watch?v=4gTQkdePOWM Steps to refinance an Abroad education loans 1. Assess your current loan Before refinancing, it's essential to understand the terms and conditions of your existing loan, including the interest rate, loan balance, and remaining duration. This information will help you determine if refinancing is a good option. 2. Shop around for refinancing options  Research different lenders that offer to refinance for abroad education loans. Compare the interest rates, loan terms, and repayment options each lender offers. Consider contacting multiple lenders to compare offers and determine the best option for you. 3. Apply for refinancing Once you have chosen the right refinancing lender, you can begin the application process. The lender will typically require information about your current loan, credit score, and proof of income. 4. Review and approval The lender will review your application and determine your eligibility for refinancing. You'll receive a refinancing offer with the new terms and conditions if approved. Review the offer carefully to ensure it meets your needs and expectations. 5. Sign the refinancing agreement If you accept the refinancing offer, you'll sign a new agreement with the refinancing lender. The new lender will pay off your existing loan and provide you with a new loan. APPLY FOR EDUCATION LOANS Advantages of refinancing an education loan Refinancing an abroad education loan involves paying off your existing loan with a new loan from a different lender. This process can help you take advantage of lower interest rates, better repayment terms, or a more favorable loan structure. Here are some benefits of refinancing an abroad education loan: 1. Lower interest rates  Refinancing your loan when interest rates are lower can significantly reduce the overall cost of your loan. A lower interest rate means you'll pay less over the life of the loan, potentially saving you thousands of dollars in interest payments. 2. Better repayment terms Refinancing can also allow you to select better repayment terms, such as a longer loan term, which can lower your monthly payment and make it easier to manage your finances. 3. Improved credit score  If your credit score has improved since taking out your original loan, you may qualify for a lower interest rate when refinancing. This can result in substantial savings over the life of the loan. 4. Simplified repayment process  Refinancing multiple loans into one loan can simplify the repayment process and make it easier to manage your finances. You'll only have to make one monthly payment instead of multiple payments to multiple lenders. In addition to these benefits, refinancing an abroad education loan may allow you to switch from a variable-rate loan to a fixed-rate loan. This can provide peace of mind, as your interest rate will remain the same over the loan's life, regardless of market changes. When considering refinancing, weighing the potential benefits against any costs associated with the process is important. Some lenders may charge fees for refinancing, so review the terms and conditions of any refinancing offer before making a decision. Consult an expert advisor to get the right plan TALK TO AN EXPERT

When you decide to study abroad, an education loan is one of the most critical factors. A study loan can be your savior because of the growing cost of higher education today. It will assist you with all of your financial demands throughout your course.   However, numerous requirements must be met before you can apply for the loan, and your CIBIL score is the most important one. There is a clear connection between your CIBIL score and the school loan, and it is accurate to say that your credit score can make or break your ability to obtain a student loan.  What is a CIBIL Credit Score?  The first credit information company in India is CIBIL (Credit Information Bureau (India) Limited). Every month, CIBIL must receive credit card payments and loan histories from every national bank and financial institution. CIBIL then produces the Credit Score after collecting and maintaining the Credit Information Report (CIR).   A three-digit figure called a CIBIL Score can range from 300 to 900. This figure, which determines your creditworthiness based on the data in your CIR, is calculated.   Lenders use this rating to assess your loan application. A higher score shows that you are more likely to repay the loan on time, decreasing the likelihood of missing a payment and making you a less hazardous borrower.   As a result, it raises your chances of receiving a loan. A lower score indicates that you are a riskier borrower who is less likely to make timely loan repayments and more likely to experience credit default. As a result, it decreases your chances of obtaining credit. The CIBIL Score: How is it Calculated?  The CIR report and six months' worth of past financial data are used to inform how the CIBIL algorithm determines the CIBIL credit score based on 258 different factors with varying weights. Some aspects of your financial credit history assess your score.  Factors affecting CIBIL Score Various things influence your CIBIL credit score, including your repayment history. Most of your credit score reflects how quickly you have paid off your debt. Any missed credit card payments or unpaid loans will harm the CIBIL score.   Credit Utilization Limit: Going above your credit limit has a negative impact on your CIBIL score. It reveals bad financial practices.   Duration of Credit Use: In plain English, this refers to the total years the credit account has been active. The lender can decide on the loan application more quickly if the applicant has a long and solid credit history.   Only Paying the Minimum Amount Owed: You have a much higher chance of getting trapped in debt if you make minimum monthly payments. The leftover balance will continue to accrue interest. Additionally, it casts a negative light on repayment behavior.   Credit Mix: A balanced mix of secured and unsecured credit is crucial. Lenders see it favorably since it demonstrates that you have experience managing both types of credit. Additionally, having just one sort of credit can harm your credit score. CIBIL score required to apply for an Education Loan  The CIBIL score of the applicant and co-applicant is one of the most important variables in an education loan. The score may fall between 1 and 999. However, a CIBIL score of 750 or higher is optimal for obtaining a degree. Loan acceptance can be difficult for applicants with CIBIL scores under 600.  How will your CIBIL Score affect your student loan?  According to statistics, 90% of loans are typically given to applicants with scores above 750. Student loans are no exception to the rule that your credit score boosts your chances of getting approved for a loan. Possessing a high credit score has several benefits that include:  The lower interest rate  Faster clearance with less paperwork  Increased loan amount  Increased card limit  A longer-term  The majority of students may have yet to use a credit card or loan; therefore, they lack a credit history. In these situations, the lender investigates the credit history of the guarantors, typically the borrower's parents, when the borrower applies for an education loan. Therefore, there is a strong likelihood that the loan will be rejected if the parents have a low CIBIL score.  How may your CIBIL score be raised?  These are the steps you can take to increase your credit score.  To qualify for a student loan and gain access to a prestigious institution for further study, you must have a high CIBIL score. If you examine your credit score and execute the correction mentioned above, you can immediately raise your CIBIL score and quickly and affordably apply for an education loan. Also, there are education financing websites like GyanDhan, which are expressly made to enable students to avail of education loans irrespective of their CIBIL score and can help them pursue their study abroad.  Regularly check your CIR and CIBIL scores - The first step is to periodically check your CIR and credit score on the CIBIL website. Even though you haven't defaulted, your CIR may occasionally show a problem due to a technological or bank error. If you have a good argument, you should immediately contact CIBIL to report the problem and have it fixed.   Pay down the debt promptly. Failure to make payments on time and defaults have a negative impact on your credit score. Make all of your payments accordingly and on schedule. You'll get a better grade as a result.   Avoid serving as a guarantor for someone who is less creditworthy because it will lower your CIBIL score if they default.   Prefer a variety of credit - You should use a variety of credit, with secured loans making up a larger portion of the mix than unsecured loans.   Don't use all of your credit cards at once - Don't use all of your credit cards at once. Using at most 40 to 50 percent of your credit limit is best.   Loans with Collateral If you have a low credit score, having a good piece of property as Collateral may assist you in getting your loan authorized. Some banks will also accept loan protection policies as Collateral.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Families should know how they can use scholarships, grants, and other forms of financial aid to reduce the amount of abroad education loan debt they have taken so that the pressure to repay the loan diminishes to a certain extent.  These are challenging times for students and their parents regarding education costs, especially if the child wants to pursue a study course in an overseas college. Although most families in these circumstances have to take out an abroad education loan, they can get the help of generous financial aid that can later reduce the amount of the loan debt. What are the different Financial Aids available to Students? Financial aid refers to the funding that does not come from a student's or his family's personal savings and earnings. It includes scholarships, grants, and work-study jobs from community organizations, high schools, colleges, state agencies, corporations, foundations, etc. 1. Grants Grants are financial aid given by a government, foundation, or company to a student to felicitate a specific goal, such as funding overseas education. Grants are monetary awards or gifts based on financial need and generally do not have to be paid back.  2. Scholarships Scholarships are similar to grants in terms of repayment because you do not have to pay them back. Scholarships, however, are based on several factors besides financial need, which is undoubtedly an important reason.  Scholarship eligibility, in most cases, is based on the goal or objective of the individual or the entity funding this monetary reward. Most student-related scholarship programs look for a strong academic record, specific artistic skills, career goals, sports prowess, ethnic background, entrepreneurial interests, and voluntary experience.  The Indian government provides financial aid through scholarships to interested candidates who want to study abroad. Check the official website to know whether you qualify for the scholarship program and how much money this financial aid will offer. 3. Work-study Programs / Student Employment All students can work reasonable hours during their academic year, irrespective of their financial background. They have to take prior permission and inform the universities beforehand.  Work-study Program is a type of financial aid that helps students to get a job on campus or college-sponsored jobs. It is a need-based financial help that allows students to earn additional money.  All the wages earned are paid directly to the students, which they can use for any additional or personal expenses.  4. Banks, Universities, Private Organizations, or Non-Profits Financial institutions, private institutions or non-profits, and the universities where the student has applied for the study course also offer scholarships and grants to students who have done exceptionally well or need additional monetary support.  Important scholarship funds attached to prominent universities are in the form of federal and state grants, endowment funds, and gifts from alums. There are also scholarship programs established by generous donors and alumni for students who are doing exceptionally well in specific fields of study or sports etc. How to use Financial aid alternatives to reduce loan debt amount? Students should keep on making inquiries about the various financial aid that they are eligible for and visit the websites of both private and government organizations along with the university they want to study.  Grants are a kind of free money without any strings attached, whereas scholarships might be merit-based, and the students would have to fulfill the terms of the set criteria. Both of them can be applied towards academic bills like tuition money and study materials etc. so that the student has to use considerably less loan amount.  The student often uses the work-study amount for additional expenses that need to be covered, like study tours, food expenses, or travel costs. A student can spend this money on things he deems fit.  Once the student becomes eligible for financial aid and is offered a monetary reward, he should inform the loan officer about the money. Both need-based and merit-based aid given to the student will go a long way in reducing the actual amount that must be paid as the abroad loan debt.  Conclusion Hope this blog answers your queries about how to reduce the abroad education loan debt with help of scholarships, grants, and other forms of financial aid.  Counselors at the Edufund App offer expert advice that can prove a blessing in managing the loan debt by getting access to the necessary financial aid and thus minimizing the actual loan amount that has to be paid eventually. Consult an expert advisor to get the right plan TALK TO AN EXPERT

As more and more individuals move out, earning a degree from an international university may sound fancy and appear aspirational, but there are expenses associated with it, and handling them is not always easy. Although obtaining student loans is now quite simple, statistics suggest that few people appear to be aware of this. Although more students are traveling to study abroad, there are also more defaulted student loans. The Indian Banks' Association said that as of March 2018, there were around 9% more education loan defaults than there were in March 2016 (7.3%).   Data from the Mumbai-based credit agency CRIF High Mark reveals a rise in the average amount of new loans disbursed annually. The average ticket size for new student loans as of September 2018 was $8,95,000 compared to $7,08,000 at the end of FY18. "Indian demographics favor youth and high academic achievement, which boosts employability. Due to rising educational costs, the majority of students need loans.   The number of students who can obtain employment based on non-immigrant visas for temporary workers is capped under the new H1B visa laws in the US, which is one of the factors contributing to the shrinking of the ability to repay loans. Each fiscal year, there is a cap of up to 65,000 visas, with an additional 20,000 visas reserved for those who have obtained their master's degree from a US university. However, a much bigger number of people apply for the H1B visa. 236,000 applications were received by US Citizenship and Immigration Services (USCIS) in FY17.   Thus, the student's employability has greater significance. The student and the guarantor can experience more financial strain if that market slows down. How to avoid the negative long-term consequences of education loans?  1. Avoid Purchasing a Home  One's capacity to buy a home is severely impacted by student loan debt. In a 2015 survey by Equifax, 55.7% of millennial renters cited "school loan debt/not enough money saved" as their main deterrent to home ownership. Even if you have the ability to make the required monthly payments, paying down student debts may prohibit you from setting aside enough money for the minimum down payment needed by many lenders.  2. Live and work at Home  While some renters cannot afford to buy a home, other millennials with student loan debt, particularly those who reside in large cities like New York, Chicago, or Boston, cannot even afford to rent apartments.   According to Apartment Guide, the national average rent for a one-bedroom apartment in the US will rise from $1,596 in 2019 to $1,621 in 2020. When you have a student loan debt of approximately $30,000, that might be pretty difficult to pay. Many of these young adults choose to stay in the nest since their income is insufficient to cover their rent and school debt repayment.  3. Bringing Down Your Net Worth  Significant student loan debt can undoubtedly lower your overall net worth. There are differences between college graduates with and without student loan debt, according to a 2014 Pew Research Center analysis. A household led by a college graduate under the age of 40 who has student loan debt had a median net worth of $8,700. On the other hand, the median net worth of a household with a college graduate under 40 and no student loan debt is seven times higher, coming in at $64,700.  4. Postpone your dreams  Your standard of life and financial independence aren't the only things that are impacted by student loan debt. It also decides which of your dreams you can pursue and which ones will only serve as a faint recollection. You can find yourself forgoing a career with better compensation for one that provides you with a greater sense of fulfillment and purpose.   For instance, you might aspire to work for a charitable organization. But if you find out that the money that comes with it could not be enough to cover your financial commitments, you might have to give that up. In reality, you'll have to give up on these goals in favor of a higher-paying position so you can make your student loan payments.  5. Student loan debt persists Debt from student loans is distinct from other forms of debt. For instance, if a customer can't afford auto payments, they can return the vehicle to the dealer, and if a homeowner can't make their mortgage payments, they can return the keys to the bank. Your student loans are not subject to that rule. Nothing is left to return when you complete the student loan repayment process. Whether you used the money for education or not, it has already been spent.  Conclusion  More students are taking out education loans to pay for their education. It's crucial to understand the repercussions of borrowing money and to be self-disciplined enough to borrow what is necessary before even considering taking out a loan. Make cautious arrangements to repay your loans when you borrow, making sure to account for the earnings you can anticipate after graduation in the sectors that interest you.  TALK TO AN EXPERT

For students looking to study abroad, the UK is the ideal location. India ranks as the second-highest nation of origin for students at UK higher education institutions. If you are an aspiring student planning to study in the UK but are concerned about the expense of attending a UK university, this blog will help you understand how an education loan may help you. An education loan for a course in the UK is one of the most popular options among the different forms of financial help offered to overseas students.  How does one apply for a student loan in the UK?  You can now get a study loan for the UK with low-interest rates, flexible payment schedules, a simple application process, few documentation needs, and quick approval. To learn about interest rates, repayment options, and loan amounts and to create a budget for the expense of studying in the UK, all you need to do is contact the loan providers.  Explore this page to learn more about the cost of studying in the UK, the prerequisites for student loans in the UK, the costs that are covered by the loans, repayment, loans for Indian students studying in the UK, etc.  https://www.youtube.com/watch?v=4gTQkdePOWM Why would you need a UK student loan?  If you have decided to study abroad in the UK, you should be aware that it is one of the most expensive countries. The entire price includes university tuition fees, cost of living factors like lodging, food, transportation, health care charges, and other expenses. One could feel financially constricted with so many expenses.  The following are some of the main justifications for choosing student loans in the UK:  Interest rates on any loan, including home loans, auto loans, personal loans, and others, are frequently higher than those on student loans. Additionally, female borrowers receive a 0.5% discount from all Government banks.  A student loan in the UK will pay for your tuition, transportation (tickets), housing rent, university fees, food expenses, living expenses, laptop, and any other item necessary for your studies.  Usually, parents sell off sizable amounts of assets to pay for their children's education in the UK, which throws off their long-term financial goals. When you take out an education loan, however, banks hold your liquid assets, such FDs, insurance, and government bonds, as collateral and issue you a loan based on that security.  A student loan for the UK is one of the effective options to pay for all of your expenses promptly and safely while still meeting visa and admission standards.  But how can I apply for an international student loan in the UK? Let's look at the eligibility and prerequisites for UK student loan applications.  Criteria and conditions for obtaining a Student Loan in the UK  Let's look at the qualifications for loans for Indian students studying in the UK before delving into the procedure of obtaining one:  The candidate must be an Indian citizen.  The applicant's age at the time of loan application should fall between 18 and 35.  They must have received official word of admission to a reputable UK institution.  There must be a co-applicant, who may be a parent or spouse.  Co-applicants must have a reliable source of income.  What paperwork is necessary to obtain a student loan?  If you wish to apply for a study loan in the UK, the following documentation is required to support your loan application:  Bank loan application form for education.  Proof of enrollment.  An Aadhar card, voter ID, passport, or driver's license, serves as identification.  Examples of address documentation include bank statements, rental agreements, ration cards, utility bills, and phone bills.  Age verification documents include an Aadhar card, voter ID, driver's license, and passport.  Passport-size photos.  When requesting a loan, proof of income in the form of pay stubs is required.  Financial records  Recent exam results, such as higher secondary exams or graduation results, are on mark sheets.  A copy of any award letter.  A thorough breakdown of the costs involved in taking your selected course.  Statement of the borrower's bank account.   The assets and liabilities of the co-borrower are listed.  APPLY FOR EDUCATION LOAN How can Indian students get a Loan in the UK?  The answer is a resounding yes if you're asking whether or not loans for Indian students are available in the UK. You can borrow money to pay for tuition and living expenses at UK institutions. The university, course, age, nationality, and whether you've taken higher education courses all affect your eligibility for student financial aid. Here are the procedures to follow when requesting a student loan in the UK:  For a student loan in the UK, you can apply online.  You can apply for financial aid through an education loan to study in the UK for up to nine months after the start of your academic degree.  Processing of your application could take up to six weeks.  You must provide identification evidence.  Once you start making a consistent paycheck, you can pay off these loans.  Your monthly income will also affect how many and how many installments you will receive each month.  Types of student loans for the UK  Let's look at the two major forms of loans available to Indian students in the UK:  Collateral Education Loan: A secured education loan in the UK or a loan for which you must offer security or collateral in order to be approved. Real estate or fixed assets like FDs are examples of securities that can be either material or immaterial.  Non-Collateral Education Loan: You do not need to present any collateral in order to apply for an unsecured education loan in the UK.  Additionally, the table below details the main distinctions between these two loans: Secured Loan Unsecured Loan The bank requires collateral security to provide such a loan. There is no need for collateral to avail of this type of UK education loan for international students. Helps you get a loan of up to 1.5 crores Helps you get a loan of up to 750,000 INR for the UK The rate of interest is usually lower The rate of interest is usually higher  What Indian banks offer student loans to UK citizens?  Bank Name Maximum Amount of Loan (in INR) Interest Rate State Bank of India 1,50,00,000 10.50% Bank of India 40,00,000 8.95-9.75% Bank of Baroda 1,50,00,000 8.50-9.15% Central Bank of India 20,00,000 8.65-10.60% Allahabad Bank 50,00,000 7.15-10.05% Punjab National Bank Determined on the basis of need 8.90% HDFC Bank 30,00,000 14% ICICI 1,00,00,000 10.50-13% Axis Bank 75,00,000 INR 13.70-15.20%  What costs in the UK Are Covered by Student Loans?  Look at the costs paid by student loans in the UK:  Payments due to the institution  Fees for exams, library memberships, and lab services  Expenses for the books and supplies required to finish the course  Refundable reservation deposits, cautionary deposits, etc.  The cost of travel to study abroad  Up to 50,000 INR was spent on a two-wheeler.  Costs associated with a research trip or a project for the class  It is expensive to pursue a degree in one of the top study-abroad countries, such as the UK. Instead of delaying your decision to study in the UK, it is wise to take out an education loan for the UK. Hope you learned about the prerequisites, eligibility, and application process for student loans in the UK from the aforementioned guide. TALK TO AN EXPERT

Planning to apply abroad and stressed about your education loan application? Keep reading to find out the difference between private vs government-backed education loans for abroad.   Education loans offered by private vs government-backed banks differ in interest rates, moratorium periods, processing costs, and payout, are different.  Government banks are those where the government itself holds the majority of the bank's stock, as opposed to private banks, where the majority of shares are held by shareholders. State Bank of India, Bank of Baroda, Bank of India, and the Central Bank of India is the government banks whereas ICICI Bank, Axis Bank, and HDFC Bank fall in the category of private banks. Government banks vs. private banks  Quantum of Finance: Secured education loans and unsecured education loans are the two main divisions of overseas student loans. Government banks like SBI and BOB can provide up to 1.5 Crore in financing for secured education loans, but private banks like Axis Bank and ICICI Bank can provide financing ranging from 75 lakhs to 1 Cr. The amount of funding for unsecured overseas education loans is up to 7.5 lakhs for government banks and up to 40 lakhs for private banks.  Rate of Interest: Both public and private banks have different rates of interest. Private banks have a higher return on investment than government banks. The interest rates offered by the State Bank of India and Bank of Baroda for loans for international education are 8.5% to 9.5%. For secured education loans from private banks like Axis Bank and ICICI Bank, the interest rate ranges from 9% to 10%, and for unsecured education loans from 11% to 13%.  Processing Time: Government banks process loans for international education in up to three weeks, whilst private banks process loans in up to ten days. This is one of the reasons we suggest applicants apply for international student loans at least three months before the program's start date.  Processing Fees: Compared to government banks like SBI, BOB, BOI, etc., the processing fees levied by private banks like ICICI Bank and Axis Bank are greater. To be precise, processing fees charged by government banks are 10,000 + GST, whereas fees charged by commercial banks might reach 1% of the total amount of the student loan.  Disbursement: The sum of the education loan is disbursed to the appropriate university's bank account by both public and private banks. These banks send the money into the currency card that is issued by the same institution that provided the loan in order to pay for living expenses.  Repayment Tenure: This refers to the length of time that the applicant has to pay back the financial institution for the student loan in Equated Monthly Instalments (EMIs). After the moratorium period is up, the education loan EMIs start. Government and private banks both provide up to 15 years for repayment.  Moratorium period: The moratorium period is the portion of the loan term during which the applicant for an international education loan is exempt from making any loan payments to the financial institution. In other words, lending institutions provide students with a waiting time of between 6 and 12 months. For government banks, the moratorium term is up to 12 months, whereas it is up to 6 months for private banks.  Serving Simple Interest: After an overseas education loan has been disbursed, serving Simple Interest for government banks is optional, however serving Simple Interest for private banks is required.  Age Restrictions: Applicants between the ages of 18 and 35 are eligible for loans from both public and private banks for international education. To qualify for an education loan from these banks, applicants over 35 must have a solid academic and financial background.  Tax Benefits: Under section 80E, financial institutions of both the private and public sectors are qualified to receive tax benefits.  Conclusion These are some of the key factors that should be taken into account when selecting an appropriate financial institution for an education loan for studying abroad. Both public and private banks have advantages and disadvantages.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Studying abroad can be a life-changing experience, but it can also be expensive. The cost of tuition, accommodation, travel, and other expenses can add up quickly, making it difficult for many students to make the most of this opportunity. Fortunately, there are abroad education loans that can help you finance your study abroad program or gap year. However, you have to understand that these loans are typically designed to support students who are pursuing a degree program, not those who are taking a gap year or participating in a study abroad program. So, if you're looking to use an abroad education loan to fund a non-degree program, you'll need to take a different approach. https://www.youtube.com/watch?v=4gTQkdePOWM The first step in securing an abroad education loan for a study abroad program or gap year is to research your options. Start by exploring different loan programs offered by private lenders, such as banks, credit unions, and online lenders. You may also be able to find scholarships and grants specifically for study abroad programs, so be sure to check with the host institution, study abroad organization, or government agency for information about funding opportunities. Once you have a list of potential loan programs, it's essential to compare their terms and conditions. Look at the interest rate, repayment terms, and any other fees or charges associated with the loan. Make sure you understand what the loan will cost in the long run, so you can make an informed decision. You should also consider any restrictions on how you can use the loan proceeds, such as restrictions on the type of program you can attend or the length of time you can spend abroad. When applying for an abroad education loan, you'll typically need to provide some basic information about yourself, including your name, date of birth, and contact information. You may also need to provide proof of your enrollment in a study abroad program or gap year program, such as a letter of acceptance or a letter from the host institution. You may also be asked to provide financial information, such as your income, expenses, and assets, to help the lender determine your ability to repay the loan. If you're approved for an abroad education loan, it's important to use the funds wisely. Make sure you use the loan proceeds to cover your necessary expenses, such as tuition, travel, and housing. Avoid using the loan for frivolous expenses, such as shopping or dining out, as these expenses can add up quickly and make it more difficult for you to repay the loan. When it comes to repaying your abroad education loan, you have to be proactive. Review your loan agreement carefully to understand your obligations, including the monthly payment amount and the due date. Make sure you have a budget in place that includes the loan payments, so you can stay on track and avoid falling behind. You may also want to consider setting up automatic payments so you never miss a payment. If you're having trouble repaying your abroad education loan, reach out to your lender as soon as possible. They may be able to work with you to find a solution, such as reducing your monthly payment or extending the repayment term. However, keep in mind that taking these steps can increase the overall cost of your loan, so always consider all of your options carefully. Tips for using education loans to fund your study abroad program or gap year Here are a few tips to help you make the most of your education loan and make your study abroad experience a success: 1. Plan ahead Start planning and researching your options as soon as possible to give yourself enough time to find the best loan for your needs and to get your application processed. 2. Be mindful of your budget Make a budget for your study abroad program or gap year and stick to it. This will help you avoid taking out more loans than you need and minimize the amount you need to repay later. 3. Consider a co-signer Some lenders ask you to provide a co-signer for the eligibility of the loan in case you are not qualified for it or there are some discrepancies. Conclusion  In conclusion, abroad education loans can be a valuable resource for students who are looking to fund a study abroad program or gap year. However, the cost of such programs can be a significant barrier for many students. Fortunately, there are education loans available to help you fund your study abroad program or gap year. Be sure to research your options, compare the terms and conditions of different loan programs, and use the funds wisely to make the most of it. In case you need more information or advice, EduFund’s team of financial advisors is always available for help. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Education loans for MBAs in India can be easily found but applying for them is harder than you think. The process is rigorous and time-consuming. Here is everything you need to know about education loans for MBAs in India before you start preparing for your application.   Want help with your loan application? Click here to connect with our experts and apply for loans with multiple banks with one application!  Why an MBA education loan? MBA is considered one of the most expensive and career-altering courses in the world, it can cost you anywhere between 10 to 40 lakhs! Many students opt for an education loan for this program. This is because an education loan is the easiest and most efficient way to finance your MBA program without any added financial stress. It allows you to complete your education and start paying for the loan after the course is over. The interest rates are reasonably designed to help students and professionals pay off their loans over a period of time. Advantages of taking loans for college  Boost your pocket: An MBA school loan can make it possible for you to complete a degree that you otherwise might not have been able to afford.  Don’t miss opportunities: Without taking out a student loan, many students would be unable to pay the MBA course cost. It is a crucial investment that can boost your professional standing and open up new development prospects for you.  Nearly all of the expenses you'll pay while completing an MBA will be covered by your student loan, which offers almost 100% coverage.  Affordability: An MBA program might cost thousands of rupees. At IIMs, tuition prices range from INR 13 lakhs to INR 23 lakhs. The leading business schools charge between INR 10 lakh and INR 20 lakh in tuition. The cost of the student's personal expenses, project costs, and dorm fees should also be included. Therefore, if you want to feel confident and at peace, while enrolled, paying for an MBA program is just as important as being admitted. Alternative methods of Achieving Dreams  A spot in one of the best MBA colleges in India requires funding the program, which is a difficult task given the high cost of the curriculum. Therefore, whether an MBA is given in India or abroad, managing the program's funding through educational loans is the most common and effective option. List of National Banks that Provide MBA Education Loans  MBA education loans are available from a number of major banking organizations at competitive interest rates. Below are a few of the most important student loan programs offered by various financial organizations that can assist you in paying for your MBA programs:  State Bank of India  Canara Bank  Dena Bank   Punjab National Bank   Union Bank of India   Central Bank of India List of private banks and NBFCs providing loans for MBA education  In addition to the above-mentioned public institutions, one should look at what private banks and NBFCs have to offer. the following have been mentioned:  ICICI Bank   Axis Bank   Kotak Mahindra Bank  Charges paid for by Education Loan  Education loans help you cover a variety of expenses. From lab fees to tuition fees, they can help you cover financial woes easily. However, these loans only cover educational costs and are not for personal use. Some of the expenses paid for by the education loan are:  Fees due to the hostel and the college  Examinee costs  Library fees  Laboratory costs  Traveling costs (if pursuing MBA abroad)  If applicable, the student's insurance premium  Buying a laptop (if required for the course)  Other costs, such as travel for research, project work, or a thesis  Acquisition of books, tools, and instruments  Building fund, refundable deposit, and caution deposit  If you want to know how much loan you need to take and your eligibility, check it out here.  Documents needed to apply for an MBA Education Loan  Address and age verification if you do not already have a bank account  copies of the qualifying exam score reports (CAT, GMAT, IELTS, TOEFL, and others)  A schedule of the course's costs (course prospectus where the course fee is mentioned)  Statement of the borrower's or co-bank borrower's account for the previous six months  Income tax assessment orders for students or parents that are no older than two years  A concise list of the borrower's assets and liabilities  Copy of a passport Loan application in bank format  Evidence of enrollment in the course (in India or abroad)  Passport-sized pictures  Don’t let finances stop you from achieving your dreams, get an education loan to pay for your college with us!

The abroad education loan process can prove tricky if you are not aware of the intricate details about the steps involved in the procedure, for example, how to apply, the documents that need to be submitted, and the time to get the loan process approved.  Education loans are one of the common sources of funding education abroad in recent times. As education inflation is reaching new heights and education costs are rising day by day, one can consider applying for education loans to support their already existing savings. An overview of the abroad education loan process Each year thousands of students apply for an abroad education loan as they want to pursue further studies at top universities of the world. The biggest challenge is arranging funds through education loans, as the cost of studying and living abroad is very high.  Students in India can apply for secured education loans from government banks, private banks, PSU banks, and unsecured loans from non-banking financial corporations. Students also have the option of getting education loans from foreign banks that offer loans to non-native students for global education. How to apply for an abroad education loan process? Fill out the online application form provided by the bank that you have shortlisted for the education loan. Visit the bank and confirm all the documents that will be needed by the bank for forwarding the loan process further. Gather all the required documents in a file and submit them to the proper authority in the bank. Enquire about the lawyer and valuator and get the legal opinion and valuation report from the lawyer and valuator, respectively, which will be later submitted to the bank by the valuator. The complete documents are then sent to the loan processing cell, and the processing officers go through the submitted documents and verify the loan application. The bank then sanctions the loan, and the loan applicant will have to visit the bank and sign all the necessary documents.  Post visa approval, applicants will have to revisit the bank and complete the property mortgage process if any property has been mortgaged against the loan.  Funds are disbursed after signing a disbursement agreement.  Applying for an abroad education loan through the Edufund app is simple. Submit all the documents and the loan application form once you have received the offer letter from a university. As soon as you clear the eligibility criteria, the loan gets approved, and you can sign the loan agreement. Documents required for applying for abroad education loan process The financial institution where you have applied for the abroad loan application will require details of the applicant and the co-applicant.   Properly-filled application form. Documents confirming identity details and residence proof of the applicant and co-applicant. It can be a passport, voter ID, pan card, driving license, or Aadhar card that would show personal details and current address. Passport-size photographs of both the applicant and the co-applicant Academic documents of the applicant that depicts the total academic and professional experience.  This includes mark sheets and certificates of class – 12, graduation, and the results of the admission test that the applicant has taken, like SAT, TOEFL, LSAT, GMAT, IELTS, or GRE.  The acceptance letter that the applicant has received from the university is the admission proof for studying abroad. Last six months' bank statements of the applicant and the co-applicant. Income proof of the co-applicant that shows that they are capable of fulfilling the terms of loan payment in case the applicant is unable to do so. In the case of collateral, the property title deed, building approved plan and NOC for a mortgage from the builder is needed.  Time required to get the loan process approved It takes nearly 45 days to 2 months to start the processing for the submitted loan application. Edufund has tied up with several top banks in the country and can process the loan in comparatively fewer days. The experts associated with the app will negotiate on your behalf and get the best possible offer on loan rates.  Conclusions  Students who are aware of the various steps involved in the abroad education loan process can plan, prepare and take full advantage of the knowledge so that the application process for the loan procedure is smooth, fast, and quick.  Take the help of the experts on the Edufund app to choose the best possible education loans with top banks. Qualified counselors will help to make the process smooth and easy and ensure that the education loan is available on time at the best possible rates. There are no hidden costs and zero commission, which will help to save on unnecessary fees.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

261,406 Indian students studied abroad in 2022, according to the Ministry of External Affairs, and more students are anticipated to enroll in top-notch programs next year.  The best way to pay for studying abroad is often thought to be through student loans. Loans for studying abroad come in a variety of forms. Let's learn about them and help you choose your best option. Types of education loans  Let's first explore the two major forms of education loans accessible to international students who want to study abroad through collateral-free education loans: 1. Collateral education loan  To get the required loan amount for a collateral education loan, the borrower must pledge collateral (such as a house, property, gold, insurance policies, land, fixed deposits, etc.) as security. Collateral loans can further be divided into three categories; Immovable property: This comprises buildings, flat surfaces, uncultivated land, and areas with well-defined borders. Liquid security: This covers LICs, government bonds, fixed deposits, etc. Third-party collateral: Only government and public banks are covered by this law. In this situation, if a candidate lacks the necessary assets listed above or is unable to provide the value to match the necessary loan amount, they may pledge the asset of a third party as collateral. In essence, the term "third party" refers to those who are not members of the candidate's close family. For instance, the candidate's uncle, aunt, pals, or the major co-applicant, etc. 2. Non-collateral education loan  The borrower of an education loan for international studies without collateral is not required to provide collateral as security, in contrast to an education loan with collateral. In the case of an education loan without collateral for abroad, borrowers are required to submit documentation and fulfill relevant requirements and eligibility criteria. Types of education loans based on lenders The following are the different types of education loans based on lenders:  1. Loans from Public-Sector Banks In India, public-sector banks or government banks give education loans to those who want to study abroad mostly based on collateral that is given as security. Government banks offer unsecured loans to students for INR 7.5 lakh. Applicants must offer collateral as security for sums more than this. Compared to commercial lenders, public sector banks provide lower interest rates. Section 80E offers tax advantages for government bank student loans. Major public-sector banks that provide loans for international schooling include: State Bank of India Bank of Baroda Punjab National Bank Union Bank of India 2. Loans from Private Banks Both secured and unsecured loans for study abroad are available from private Indian banks to students. The amount that may be approved depends on several variables, including the applicant's profile, the co-applicants financial situation, the nation, the course, etc. Private-sector banks provide better interest rates than NBFCs and foreign lenders, but they are higher than government banks. ROI generally begins around 11% annually. Private bank student loans are also eligible for Section 80E tax advantages. Compared to government banks, private banks require less time to approve an education loan. Several of the largest private sector banks providing loans for international schooling are: ICICI Bank Axis Bank 3. Loans from Non-Banking Financial Companies (NBFCs) NBFCs provide unsecured and secured student loans for international studies. The maximum loan amount that can be approved varies depending on several variables, including the applicant's profile and the financial status of any co-applicants. When compared to commercial banks and government banks, the interest rates on loans from NBFCs are on the higher side. The interest rate for NBFC education loans normally ranges from 11.5% to 16% per annum. NBFC education loans do not qualify for Section 80E tax advantages. Compared to government banks and commercial banks, NBFCs require less time to complete an education loan. Some of the largest NBFCs providing loans for international schooling include: HDFC Credila Avanse  InCred Auxilo How to choose the right abroad education loans for higher education?  Research and thorough comparison are necessary while selecting the best education loan for higher education. Before choosing an education loan, compare the interest rates and repayment options offered by several institutions. You may also get in touch with an expert. They can assist you in negotiating a lower interest rate and in organizing your repayment plan to help you save money. Before choosing to take out an education loan, ascertain how much money you require to fund your higher education. Our College Cost Calculator will help you determine how much additional money you'll need to live comfortably in your college city by providing you with information on the tuition and living costs there. In the modern, dynamic world, a good education is crucial because it gives students more self-confidence and gives them the tools they need to live their best lives. Therefore, although taking out a loan first seems scary, as long as the student is dedicated and makes the most of the opportunity, it will ultimately pay off. Consult an expert advisor to get the right plan TALK TO AN EXPERT

The expense of attending your dream university is already high due to the rising cost of education. Recent research found that the price of contemporary education is rising quickly, on average, by 12 – 18% annually. Given this, obtaining an education loan for your child's future is unquestionably the finest choice without sacrificing the caliber of their education. This blog will discuss the pros and cons of using education loans abroad to finance your studies. Pros of using education loans abroad to finance studies The following are the benefits of study abroad education loans:  1. Tax benefits on education loans  One of the most significant benefits of an education loan taken out for courses in India and abroad is the tax benefit. Spending less money and giving your kids a brighter future is a fantastic method. This is one factor that favors student loans over self-financing for educational expenses. Section 80E of the Income Tax Act of India allows applicants for education loans to deduct interest paid on loans, decreasing the interest rate. The deductions allowed by this section may be made for eight consecutive years, starting with the year the loan is taken out and continuing until the loan's interest is entirely returned, whichever comes first. It should be emphasized that these deductions only apply to loans obtained from financial institutions that have been gazetted. Any Indian citizen may deduct the interest paid on any school loans they have taken out for themselves, their spouses, their children, or any other children over whom they have legal custody. It should be emphasized that Section 80E tax deductions do not apply to student loans obtained from friends and family. 2. Upto 100% expense coverage During their higher education abroad, students frequently incur additional costs in addition to the tuition fee. One-time registration fees, library dues, lab and equipment fees, housing costs, and other personal expenses are a few of these costs. Most students have access to full education loans, which also give them money to live healthily while studying abroad. This frees parents and students from worrying about money, and fast tuition payment to the university or institution ensures that a student's study term will go without any problems. 3. Education loans will help you build your credit score Yes! Students and recent graduates may improve their credit ratings by wisely using student loans. Student loans may be the only opportunity to establish their credit history because many college students need other payments or debts attached to their identities. Throughout the remainder of your life, having a decent to an exceptional credit score will be helpful when you apply for jobs, credit cards, apartments, and even purchase a house. But to take advantage of these fantastic advantages, you must use student loans properly.  Cons of using education loans abroad to finance studies The following are the few disadvantages of study abroad education loans:  1. You have to start your career with debt You will begin your adult life in debt if you rely on student loans to pay for your education. Yes, having a college degree may enable you to earn more overall than someone with merely a high school graduation. However, depending on how much you borrow, it might be difficult for the first few years after college, particularly if, like millions of other college graduates, you need help finding a job that compensates enough to cover your expenditures.  2. Defaulting on your education loans can tank your credit score Missing payments, defaulting on student loans, and taking on more debt than you can afford to repay after graduation can all have a major negative effect on your credit score or co-borrower's credit score. The worst case scenario is defaulting since it indicates that you could not repay the loan you received from a lender. 3. Education loans might not cover all your expenses Most federal student loans have yearly borrowing caps, and some private lenders could also. You might still need to hunt for additional sources of income to finish your degree, depending on the cost of tuition, fees, materials, lodging and board, and other expenditures. How to choose the right education loan for higher education?  Research and thorough comparison are necessary while selecting the best education loan for higher education. Before choosing an education loan, compare several institutions' interest rates and repayment options. You may also get in touch with an expert. They can assist you in negotiating a lower interest rate and organizing your repayment plan to help you save money. Before taking out an education loan, ascertain how much money you require to fund your higher education. Our College Cost Calculator will help you determine how much additional money you'll need to live comfortably in your college city by providing information on the tuition and living costs there. And make sure you've done your research, decided which course of action is best for you or your child, and then finalized a sound education strategy to create a bright future! Consult an expert advisor to get the right plan TALK TO AN EXPERT

The parents’ guide to education loans helps to make sense of the loan process and understand how they can mold the terms and conditions to suit their specific needs and requirements.  If you ask an Indian parent about his priority then the obvious answer will be providing a good education for his children. With education inflation at 11% - 12% and expenses escalating consistently, it is no longer a reality without the help of education loans.   Even after creating a sizable education corpus for their children, parents can fall short of the money. Taking out an education loan can bridge the shortfall, provide quality education, and offer tax benefits.  What is an Education loan? An education loan is a loan taken out for completing the studies. It can be either for studying in the home country or abroad at a foreign university.  The education loan includes tuition fees, caution deposit, travel expenses, cost of books, uniform if applicable, laptop if required, hostel fees, food expenses, and in some cases traveling and other miscellaneous expenses. https://www.youtube.com/watch?v=4gTQkdePOWM Guidelines for Parents Taking Education Loans Parents often worry about the burden of repaying the education loan at the beginning of their children’s careers but in reality, it is a good thing. Repaying the loan amount on time will create good credit scores and instill financial discipline in the students. Let us go through some of the important things that parents taking education loans need to look for beforehand.  1. Loan interest How much interest you have to pay on the education loan matters a lot and this is the first thing parents should find out. Private lenders, banks, and NBFCs are the perfect choices for an education loan hence parents should shortlist three to five lenders with the minimum loan interest. If the student has exceptional grades or has been admitted to a STEM course in a reputed and ranking university then parents can talk to the financial institution of their choice because banks often reduce 1% interest in such cases.  Choose from the multiple banks and NBFC partners at the Edufund App for higher loan amounts and lower interest rates.  2. Time or duration of the loan The lenders have extended the duration period from 7 years to 15 years. This means a minimum EMI which is easy to repay even if the initial salary of the applicant is low. Parents can choose the longest possible loan repayment duration as there is no penalty.  3. Collateral for the loan Defaults are very common in education loans hence financial institutions or lenders insist on the collateral if the loan amount exceeds INR 7.5 lakhs. The collateral can be fixed deposits or houses etc. Collateral often reduces interest costs. Take an education loan through the Edufund App as the hassle-free loan process does not require collateral for an amount up to INR 75 lakhs.  4. Co-applicant  Financial institutions insist on a co-applicant or guarantor so that the risk is divided in case of late payment or default. Parents, guardians, or elder siblings working in a reputed company should serve as guarantors or co-applicant as it will help in reducing the interest cost.  5. Margin money The margin money often depends upon the loan amount and the place where the university is located. It is better to know beforehand the contribution of the lender and how much margin money the parents will have to pay. Banks often charge 5% for loan amounts above INR 4 lakhs for studying in India and 15% for overseas studies.  Parents need not pay the margin money if they take out an education loan from the Edufund App.   6. Moratorium period The moratorium period lies between 6 – 12 months after the course study and it is important for parents to sort out beforehand that if the interest is paid in this period then the EMI will be based only on the principal amount and if not then it will be added up and EMI will be loan plus additional interest. 7. Documentation The parent’s guide to education loans emphasizes proper documentation. It is necessary to submit all the related papers and check the details with an expert to avoid any discrepancies.  8. Start the process as early as possible The loan application process takes time whereas the universities will give you little time to deposit the fees. Parents should start the process as early as possible to avoid any mishaps later on.  Conclusion Quality education ensures breaking the shackles of poverty with the help of a good job but it comes at a cost. The parent's guide to education loans refers to the guidelines that encourage parents to take the necessary steps and apply for the loan.  Parents can apply for education loans through the Edufund App. Use the education calculator on the site to know about the required loan amount and talk to the counselors to compare loan offers and get a clear picture of why taking the loan makes sense. The best thing is that parents will not have to pay any fees for the consultation. Consult an expert advisor to get the right plan TALK TO AN EXPERT

An education loan is no longer a choice but a necessity for most students aspiring to study abroad. Although there are several financing options like banks, private lenders, and NBFCs open, it is not an easy feat to get the loan sanctioned. There are numerous criteria to meet that confuse the applicant.  In this blog, we will go through some of the important tips for maximizing your chances of getting approved for an abroad education loan so that the loan journey remains smooth, quick, and easy. 10 tips to consider before applying for an abroad education loans 1. Study courses and university  Financial institutions put a great deal of emphasis on the course a student wants to pursue and the university they have been admitted to. The most important tip for maximizing your chances of getting approved for an abroad education loan is that the study course should be accredited otherwise, the loan application can be rejected.  STEM courses like mathematics, engineering, and science have higher earning potential compared to arts, humanities, or commerce; hence the chances of a loan being approved are high. If you are considering the other courses, make sure you balance them out with a good and reputed university. It should be a top-notch place to study with a good reputation or ranking.   2. Academic history of the applicant Academic history matters as it will give a fair idea of the student’s capabilities, whether they are serious about their studies, and do they have the intelligence to get exceptional marks.  A student with consistently good grades has a better chance of loan approval than an average student or an applicant with an academic gap or backlog. Applicants seeking an overseas education should be serious about their studies from the word go, as it will improve their chances of loan approval.  3. Applicant and co-applicants age Financial institutions generally do not have an age limit for a secured loan, but for unsecured loans, the maximum age limit is 28 years. The co-applicant should not be close to the retirement age as lenders are hesitant in sanctioning them the loan. Applicants should be aware of the age criteria and apply for the loan accordingly.   4. Genuine and complete documents Fake or incomplete documents will result in the cancellation of the loan application; hence never try it. Read the guidelines carefully and submit each document as per the requirement. These include the loan application form, academic records and mark sheet, entrance test scores, address and identity proof like Aadhaar and PAN, admission letter from the university, and statement of costs.  5. Good CIBIL score CIBIL scores of the applicant and the co-applicant matter as a good score suggests that the previous loans have been paid on time and the chances of getting back the loaned money are high. A bad score means a delay in repayment or a cheque bounce. A good score will increase the chance of securing a loan; hence applicants should be conscious of maintaining a good CIBIL score from the beginning. 6. Too many loan inquiries are harmful Students should not apply to numerous financial institutions as they, in turn, inquire with CIBIL Agency which mentions the number of inquiries in the credit report. This has an impact on the CIBIL score; thus, the applicants must research beforehand and apply for the loan at the appropriate place and at the right time after going through all the pros and cons. 7. Must fulfill the income criteria Applicants must find out the minimum income required by the lender and then fill out the loan application; otherwise, it will be rejected.  8. The repaying capacity Lenders will look at the repaying capacity of the applicant and their total income. In case the loan is passed and is mid-way, and the co-applicant has lost or left their job, the loan can still get rejected. 9. Types of collateral  Financial institutions have a list that defines which properties are considered collateral and which are not; hence applicants must go through the list before naming that property as collateral.  10. Meet the set policy Every lender has a specific set of rules, and the applicant must go through them in detail and then fill out the form and submit the required documents.  Conclusion Lots of students apply for an education loan every year, but only a handful of them manage to get it sanctioned. In most cases, the applicants are not even aware of the true reason for the loan rejection. Knowing about the above-mentioned tips can maximize your chances of getting approved for an abroad education loan.  Reach out to the counselors or experts on the Edufund app for an abroad education loan, and they will guide you through the whole process in quick and easy steps. Consult an expert advisor to get the right plan TALK TO AN EXPERT