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A student loan is likely the first step many students take towards financial independence, and just as with other loan applications, lenders will look into your credit score when considering your application for an education loan. To determine a student's capacity to repay an education loan, lenders investigate their creditworthiness. In this blog, we will discuss the impact of your credit score on your ability to get approved for an abroad education loan and tips for improving your credit score. Importance of credit score for abroad education loan When you apply for an education loan, a lender will check your credit score; this goes for both co-borrowers and students. When applying for an education loan, a student's credit score may be crucial, but if they don't have one, the lender will base their loan conditions on the credit ratings of their co-borrowers. A student's chances of getting financial help might be improved by meeting the lender's other qualifying standards and having a high credit score: a lower interest rate a lender approval that comes more quickly a larger loan sum for schooling an increased credit limit  a lengthier term https://www.youtube.com/watch?v=4gTQkdePOWM How is the credit score calculated? Every time a person contacts a bank or other financial institution for a loan of any type, the bank or financial institution will request the CIR (Credit Information Report), which is the person's unique credit history from credit. Their credit history determines their credit score, which ranges from 300 (Worst) to 900. (Best). It is unimportant to be concerned if you haven't applied for any loans yet because your credit score will always be negative or zero. The credit score is primarily based on four factors: Repayment history - One's regularity, consistency with prior EMI payments, and other factors. A mix of loans - Several loan kinds (secured and unsecured) they have previously obtained. Credit limit - use of the credit card's or any other credit line's credit limit. Multiple loans at one time - the frequency with which they've requested or applied for loans recently. How to compare education loans? READ MORE How your credit score impacts your student loan? If you're wondering if taking out a student loan would affect your credit score, the answer is yes. Education loans, like other loans, affect your credit score if they are returned on time; if they are paid late, your score may be negatively impacted. The bulk of student loans is repaid in installments over a defined period of time. You begin to establish a history as a result of the lender reporting this to credit reporting companies. When you pay your bills on time, you'll begin establishing a solid track record for handling credit. Nonetheless, the following credit score levels are suggested for students wishing to get an educational loan to study abroad: RangeLoan Probability300-599If your credit rating is at this level, you should carefully review your financial records and concentrate on any pressing problems that could be the root of your low rating. Your chances of being approved for an education loan are decreased since financial institutions frequently see credit scores of less than 600 as being exceptionally bad.600-749Those with credit scores in this range are still qualified for student loans. Yet, the majority of banks and NBFCs are quite picky about loan applicants achieving the minimal credit score standards for education loans. 750 and aboveA credit score of 750 or above is required to be eligible for an education loan. This credit score may be used by lenders to determine the financial dependability of co-applicants and individual applicants. Tips for improving credit score The following are possible causes of your low credit score as well as suggestions for how to raise it: Overuse of credit limit: Using your whole credit limit is a sign that you lack self-control when it comes to spending. Try to keep your balance between 30 and 50 percent of your total credit limit. You'll use credit less as a result, improving your credit score. Late and failed payments: Your credit score declines if you often skip or postpone loans or credit installments. Set up reminders to pay back all borrowed money on time; this will help you build credit and get better loan conditions in the future. Rejected loan requests: Wait before submitting an application for a new loan if your previous one was rejected. When your credit score declines with each loan denial, there will be a higher chance of a fresh loan denial in such situations. Improve your credit score as a top priority to be eligible for loans. You can then file a loan application with better conditions after doing this. Be aware that the procedure can be lengthy, and loan approval can be quite difficult if you have low credit, but you may still be able to receive any other loan because the banks will keep the collateral as security until you have paid the whole loan amount plus interest. Also, it's possible that you'll only be given unfavorable loan terms and circumstances. Some of them might have greater interest rates or longer payback schedules. Consult an expert advisor to get the right plan TALK TO AN EXPERT

With quality education becoming expensive and costlier every year, education loans are becoming extremely popular among students. In reality, the price of attending a reputable university is already very high. An MBA that cost 13 lakhs a decade ago, would now cost almost double that. Parents who plan their child’s education in advance and want to provide them with the best opportunities possible to invest their money in mutual funds (MFs), fixed deposits (FDs), and unit-linked insurance policies (ULIPs). Amid all this, there still is a possibility of a financial shortfall. In such a situation, an education loan plays a critical role in bridging the gap between the shortfall and the necessary amount. https://www.youtube.com/watch?v=4gTQkdePOWM The rising cost of education According to Forbes, education costs are rising at double the rate of inflation. In 15 years, the cost of an MBA is expected to rise from Rs 2.5 lakh to Rs 20 lakh. So, if a couple saves Rs 2,500 per month for 15 years at a rate of 12%, they would have saved about Rs 12.5 lakhs, ultimately needing some more funds if their child decides to pursue an MBA. Now, you must have some questions on your mind regarding the intricacies of availing of an education loan. We have tried to answer a few commonly asked questions to enhance your understanding. 1. Who can apply for a student loan? The primary creditor is a student. A co-applicant may be a parent, partner, or sibling. 2. What is covered by a student loan? It includes the basic course fee and other costs such as accommodation, exam fees, equipment, and other miscellaneous expenses. 3. Who can avail of a student loan? It is available to students who wish to study in India or further their education outside the country. The overall sum available for studies in India and abroad differs from one bank to the next. 4. For what courses can the loan be availed? It is available as a full-time, part-time, or vocational course leading to graduation or post-graduation in engineering, management, medicine, hotel management, architecture, and other fields. 5. What are the eligibility criteria and documentation requirements? To be eligible for the loan, one must be an Indian citizen who has been accepted into a college or university that is recognized by a competent authority in India or abroad. The applicant must have completed his senior high school education.Some banks can provide a loan even before a student has been accepted to a university. The Reserve Bank of India (RBI) guidelines state that there are no upper age limits, but some banks may impose them. Additional documents such as the institution's admission letter, fee structure, and Class X, XII, and graduation (if applicable) mark sheets are required by the banks. The co-applicants income records, such as salary slips or income-tax returns (ITR), are also needed. 6. Is collateral required for financing the loan? Depending on the amount, banks will fund up to 100% of the loan. There is currently no margin money required for loans up to Rs 4 lakh. To study in India, the applicant must contribute 5% of the necessary funds. The needed margin money for international studies, on the other hand, rises to 15%. Banks may also need collateral for loans exceeding Rs 7.5 lakh. For loans up to Rs 4 lakh, financial institutions currently do not need any collateral or third-party guarantee. A third-party guarantee is required for loans between Rs 4 lakh and Rs 7.5 lakh. For loans exceeding Rs 7.5 lakh, a security deposit is required. According to the fee structure, when a loan application is approved, the banks send the funds directly to the college or university. 7. What is the rate of interest charged on the education loan? To set an interest rate, banks use the Marginal Cost of Funds based Lending Rate (MCLR) which in India ranges anywhere from 7% - 8% plus a spread (about 1 - 2.5%). The additional distribution is currently in the 1.35 - 3 percent range (as of 2017). 8. What is the process of repayment? The individual availing the loan for their education is responsible for repaying the loan. In most cases, repayment begins when the course is completed. Some banks also give you a six-month grace period after you get a job or a year after you finish your studies before you have to pay back your loan. The repayment period is usually between 5 and 7 years, but it may also be extended. The bank charges a basic interest rate on a loan over the repayment period. The student's equated monthly installment (EMI) burden for future repayments is reduced by paying basic interest during the course duration. 9. What precautions should one take while applying for student loans? When availing of a loan, one must consider bank fees such as transaction fees, pre-payment fees, late EMI payment fees, and so on. The majority of lenders charge a processing fee of 0.15 percent of the total loan amount. 10. Are there any tax benefits? The interest paid on the repayment is deductible under Section 80E of the Internal Revenue Code. This tax benefit is only available to people who are paying interest on a personal loan. The whole amount of interest charged is deductible from your taxable profits. This deduction can be taken for up to 8 years. There are no tax deductions available for the principal sum. 11. How can I apply for an education loan? You can visit the Education Loans page on the EduFund website and fill up a simple form. You will get all the details, along with guidance from experts in the field. FAQs What is an education loan? An education loan is a type of loan used for educational expenses such as tuition fees and education-related expenses like books, accommodation, living expenses, and much more. Education loans can be availed for studying only and one of the requirements is an offer letter from a reputed university/college. Who can apply for an education loan? The primary creditor is a student. A co-applicant may be a parent, partner, or sibling. How can I apply for an education loan? You can visit the Education Loans page on the EduFund website and fill up a simple form. You will get all the details, along with guidance from experts in the field. Conclusion Good education is extremely important in the present dynamic world. It not only boosts self-confidence in students but also equips them with skills that in turn help them lead their life in the best possible way. Taking a loan might look frightening but in the long run, it definitely pays off, provided the student is focused and makes the best of the opportunity. Also, since an education loan is a person's first loan, it aids in the creation of a good credit score. If you repay the loan on time and without defaults, it would be easier for you to obtain a home loan, car loan, or any type of loan in the future.

With the value of a foreign education increasing by the day, education loans for paying college tuition fees have become very common and easy to avail too. ‍Education loan disbursals from banks and various financial institutions to Indian students, studying in India and abroad increased to 92,711 Crores this year from 90,345 Crores last year. ‍However, this data hides an important issue – the number of students who are not paying their education loans back has also been increasing. Banks have reported 7-9% of loans as bad loans over the past few years, by Indian students studying in India and abroad. Such a high amount of non-repayment is being attributed to a general economic slowdown, changes in immigration policies by various countries, and a supply-demand mismatch in the candidate's skills and jobs available. Not repaying an education loan can get students into many problems and we are not talking about only the legal issues. ‍Here are some quotes from students who have completed their education and are now struggling to pay off their loans. While education loans have been the answer for many Indian middle-class families to pursue their dream education since they are easily available from banks and other financial institutions. However, they are not the best solution. Is taking an education loan a good idea? The rising cost of education has made taking loans to be a decision fraught with concerns. Even payment for an average school abroad can set you back by 40-50 lakhs if you include your cost of living in that country. Quite a few colleges in India have become very expensive over the years. This is quite obvious considering that college tuition fees have seen a steep rise compared to anything else – be it homes, vehicles, or computers – adjusting to inflation that happens in prices year on year. And this is when salaries/wages have seen only a nominal increase. Scholarships and grants are another way that allows students to afford expensive education. However, the sheer number of students who are aspiring to study in a young country like India makes it a formidable task to be eligible for a scholarship. With loans being the only option in many cases to achieve a good education, fresh graduates are taking up jobs that do not match their skillset and with less promise, because good jobs are not on offer. The job of their dreams can wait while the loan is repaid first. The huge EMI also makes them less eager to spend on a house and postpone many important purchase decisions. So how do we make education accessible to a vast number of students without them staring at a huge debt burden after graduating? https://www.youtube.com/watch?v=4gTQkdePOWM ‍What's the solution?‍ A little bit of planning, a few years before the time comes to apply for colleges is all it takes to not get into the system of loans. Put away savings for education that you can use to pay for college. These savings should be such that the money grows, while your child grows. While education goals may vary as your child grows and his/her interests change, the fact that he needs a good education will not change. What do you do in this case? ‍There are apps like EduFund that allow you to plan for your child based on future goals. We have the expertise that can help you in understanding the financial goals you need to set, to send your child to a prestigious college abroad or in India. Our college savings calculator is comprehensive and includes tuition and staying expenses in a particular city too. Investing in SIP mutual funds is recommended to ensure good returns in the long term. So, starting early adds a lot of value to your fund. FAQs Is taking an education loan a good idea? Education loan is a great choice for Indian students who wish to study abroad but it's important to do your research before you avail of one. There are interest rates that students must consider and the process of repayment. One must research whether the course is covered by the loan or not, if your bank is offering a low-interest rate, how much loan coverage should you opt for, and the ROI of your course. Can you study abroad without an education loan? Yes, it is possible to study abroad without an education loan. You can apply for scholarships, borrow money from your parents or use an education fund if your parents have started one for you. If you are planning to go abroad for a master's or MBA then you can start saving and investing for your education as well. To keep up with the living expenses, you can opt for a part-time job as well if your student visa permits it. What are some good alternatives to education loans? If you have a time horizon of 10-15 years, then considering mutual funds and investing in US stocks and ETFs is a great alternative. This option is brilliant for parents with children between the ages of 3-10 years. Conclusion Before you start planning for your child's education, you must have a specific goal. And an education fund is paramount to reaching those goals With this education = corpus, you can ensure that your child doesn’t start his/ her future career with the worry of paying back a loan. And that will be the biggest present you can gift your child, the gift of education! ‍Consult an expert advisor to get the right plan TALK TO AN EXPERT

Finding ways to pay for school can be difficult, but attending graduate school is a necessity for your career. Naturally, the programs and location of the university would be your first priorities, but there is no way you can ignore the university's tuition rates. You would naturally assume that your parents could support your schooling, as they may have done throughout the years. However, when they fall short of raising the entire amount, there is always the option of an education loan for international studies.  Keep reading to know more about the various features of a student loan for studying abroad because there are numerous ways that you can support your education abroad!  What is a Study abroad Education Loan?  A student loan for overseas studies is a type of loan created to assist students in covering the costs of post-secondary education, including tuition, books, supplies, and living expenses while studying abroad. In comparison to other loan kinds, it could have a significantly reduced interest rate and a deferred repayment plan while the borrower is still enrolled in school.  Apply for Education Loans Why is a loan for studying abroad advantageous?  Parents may struggle to afford education costs at times. In such circumstances, a student loan can be obtained from banks or other financial institutions (NBFCs). A student loan may be used to cover all or a part of the cost of schooling. A study abroad education loan assures that a student can finish their university education without facing any financial difficulties.  Loans are generally thought of as bad debt. Given that it is an investment in oneself, it differs from a loan for international study. You are making an investment in your own higher education, which will aid in your job search. It allows you to make far more money than the loan's principal. Types of education loans  When searching for an education loan to study abroad, the following two study loan kinds may be of assistance:  1. Secured Credit  The borrower pledges a portion of their assets as collateral for this specific loan for international studies. An individual who applies for a secured loan must mortgage his property to the bank or financial institution. Moreover, the borrower's mortgaged property cannot be agricultural land.  2. Unsecured Credit  Unsecured loans are financial obligations that are not backed by the collateral of the borrower. These might be offered by financial institutions in a variety of forms or marketing bundles. A variety of requirements must be met in order to qualify for an unsecured loan.  Apply for education loans Criteria for eligibility and documents needed to apply for an international study loan  Let's now discuss some prerequisites for being eligible for an education loan to study abroad:  1. Profile of the Borrower  The GRE is a crucial consideration when applying for an international student loan. The total academic performance and professional experience, in addition to the GRE score, are important factors when applying for a loan. Don't forget that Indian citizenship is the most important requirement to qualify for an education loan to study abroad.  2. Co-borrower Information  The co-profile borrower is crucial in obtaining a student loan for international studies. A foreign education loan can be secured depending on a number of variables, including your financial situation, location, and assets you own.  3. Acknowledged university  The university's standing matters as well if you've applied there. Higher university rankings correspond to higher borrowing prospects. The best universities around the world also provide better employment opportunities, increasing the security of international student loans.  4. Norms for Underwriting  Underwriting norms are the standards set forth by loan providers to ensure that only safe and secure loans are made available. They are used to decide whether or not to provide a person with a study loan for overseas study, how much money the company is willing to loan, and at what interest rate.  Let's look at the paperwork needed for an education loan for international students:  An application form that is fully completed   Academic transcripts  Passport pictures  KYC paperwork  Bank statements with residence evidence  Evidence of income  Collateral records  A birth record  Confirmation of enrollment from a reputable university  https://www.youtube.com/watch?v=4gTQkdePOWM How to apply for an International Student Loan?  Let's talk about how to apply for an international student loan now:  Decide which loan for international study suits you. Verify all details, such as the moratorium period, the payback time, the interest rate on an education loan provided by the Indian government, etc. Visit the chosen education loan's official website and complete the application. Scan and upload the necessary paperwork and await the result.  Conclusion  Nowadays, obtaining an education loan for studies abroad is not taxing, as long as you have all the necessary paperwork and know which kind of loan for foreign studies is ideal for you. Being accepted into a reputable university as an international student is one of the most important factors which further improves your chances of receiving the finest loan for overseas studies!  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Families who want their children to pursue higher studies and are unable to make ends meet are on the lookout for an education loan without collateral in India.  It is no longer easy to secure an education loan as students have to meet a strict set of criteria to become eligible for the loan. Most loan applications get rejected midway in the absence of a collateral or third-party guarantee.  Education is a blessing that can break the shackles of poverty, but how to get a loan when you do not have any property, fixed deposits, land, bonds, insurance policies, or shares to pledge as collateral is a worry for most of the middle-class households in India.  In most cases, financial institutions or private moneylenders ask for collateral as a security pledge in case of loan default so that they can recover their money in adverse conditions by selling the collateral property. Without the collateral, most banks, NBFCs, or even private lenders hesitate to sanction an education loan with a limit that exceeds INR 7.5 lakhs as the chance of default is very high.  Let us look at the institutions from where applicants can get an education loan without collateral. What is a Non-Collateral or an Education Loan without Collateral? Non-Collateral or an education loan without collateral is a type of education loan where the loan applicant can get the loan amount without pledging security against it. In the case of a non-collateral loan, the borrower has to meet specific criteria that the loan authority has set. These criteria can be country-specific, a particular study program, or a minimum loan amount. https://www.youtube.com/watch?v=4gTQkdePOWM Where can you get an Education Loan without collateral? 1. CGFEL The Credit Guarantee Fund for Education Loans, or CGFEL, is a scheme that can help loan applicants to get a collateral-free education loan from a financial institution. The scheme comes under the Model Education Loan Scheme of IBA or the Indian Banks Association.  Under the CGFEL scheme, students can get an education loan of INR 10 lakhs for studying in India and INR 20 lakhs for studying abroad through scheduled commercial banks. The maximum loan amount is set at INR 7.5 lakhs for an education loan without pledging collateral, but if the amount is more, then the applicant will have to provide a collateral or third-party guarantee.  Students who have secured a collateral-free education loan under the CGDEL scheme get a one-year moratorium after completing their studies from loan repayment.  2. Banks Banks generally follow the guidelines set by IBA for education loans without collateral, although their internal rules may vary with the set criteria. It is the sole right of a banking institution to make changes for a loan amount that exceeds INR 7.5 Lakhs. The interest rates, the upper limit of the maximum loan amount, and repayment terms vary from bank to bank.  Edufund is also associated with public and private banks and NBFCs in India and can help you in getting the best possible terms for the education loan without collateral if you are interested in borrowing the money from a specific bank. The app also has a team of dedicated experts who will talk on your behalf and bargain for the best loan terms.  Starting the loan process at Edufund is very straightforward, as you can get direct quotes from partner institutions. Higher loan amounts, lower interest rates, and hassle-free loan process are possible only at Edufund.   4. Private Lenders and Non-Banking Financial Companies Private lenders and NBFCs generally sanction education loans without collateral for an amount that exceeds INR 7.5 lakhs. This is a tricky situation for the borrower as these types of education loans come with a higher interest rate compared to the collateral-free education loan of a maximum amount of INR 7.5 lakhs.  5. Education loan without collateral at Edufund App Suppose parents or students are unable to meet the set criteria for an education loan without collateral in India. In that case, they can visit the Edufund App and meet with the experts who handle loan applications.  Edufund has a dedicated loan page that will answer all your loan-related queries and direct you toward the proper channel so that it becomes possible for the applicant to become eligible for an education loan up to INR 75 lakhs at the minimum possible interest rates without any collateral.  The service is free, and there are no hidden charges that will come at a later date to haunt you.  Conclusion  Education loan is the need of the hour, and if you can get an education loan without collateral in India, then it is a win-win situation for a student who needs the loan amount to fulfill his dreams. Student loans serve as important financial aid for millions of students who otherwise would not be able to get a proper education and desired jobs.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

If you intend to use an education loan to pay for your higher education overseas, you may have thought about the costs that these loan cover. What are some expenses under education loans? Do education loans only help with tuition fees? Can education loans cover the cost of flights or help pay the living expenses?   Keep reading to find out the expenses under education loans.    One of the main issues facing the majority of Indian students who want to study abroad is how they would pay for their higher education. An education loan makes sure that all of the financial conditions for the application process for an education loan overseas are satisfied within the allotted time limit.  For the majority of students, the cost of an education loan in India for studying abroad is the main topic of conversation when it comes to financing higher education overseas. The information on this page is relevant to both secured and unsecured education loans in India for international studies.  Costs of a typical course abroad for a student loan  One widespread misconception is that student loans do not fully cover the costs associated with studying abroad. This is untrue, though, as all educational loans, whether secured ones from government banks or unsecured ones from private lenders, cover the following list of costs that are essential to the educational process.  1. Student fees  One of the two main components of both forms of education loans in India for studying abroad is the tuition prices charged by foreign universities. An education loan in India for the international study is intended to assist students in covering their tuition costs. In India, all student loan repayments include tuition. Therefore, when deciding on the overall amount of your student loans, you should give top priority to covering your tuition costs.  2. Housing Costs  The term "factors" can refer to a wide range of things. The main living costs for a student include their rent or room and board, food, and costs for other daily necessities like transportation to and from school, a security deposit for housing, etc.  3. Medical Insurance  International students are frequently required to obtain health insurance by many foreign universities. This specific cost is covered by an education loan in India for studying abroad as it is one of the prerequisites for studying abroad for many students. Therefore, while applying for an education loan, health insurance can also be taken into account.  https://www.youtube.com/watch?v=4gTQkdePOWM 4. Flight Tickets  Another significant price covered by an education loan when applying for one overseas is airline tickets to the location of your choice. When quoting the education loan amount to your bank, this component might also be included.  5. Research Aid  You can include this information in the education loan application if your foreign university's offer letter states that you are responsible for paying for excursions and other extracurricular activities throughout the course of your studies. In addition, when applying for both forms of school loans in India, students can include the price of products like books, computers, and other study supplies in their total expenses.  What elements must a student take into account when determining costs?  There is no way to change the loan arrangement because the student loan is a one-time transaction. Therefore, a student needs to be aware of the costs they can cover on their own and those for which they might require a loan. The student's financial stability at the time of study is of utmost importance, so the loan amount should be chosen with that in mind.  Before assessing the costs, a student must take the following into account:  The price of housing in a specific country and whether it will be possible to live in shared housing for a lower cost of living.  Food prices in the city where the university is situated.  Additionally, a student's ability to prepare meals on their own can significantly lower the cost of tuition.  Since academics are not just available on-campus, the cost of eating out or intercity travel will be included in the total fee.  Many regions, including the US and Australia, have cheap used car markets and reasonable gas prices. In contrast, students in countries like Ireland receive discounts on public transportation. All of this requires preliminary research.  In the city where the university is situated, there are opportunities for part-time employment. There are enticing part-time occupations with regulated minimum earnings in several nations. This assists students in paying for a sizable portion of their living costs.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

A member of your family (preferably your parents) who co-signs the loan application and assumes responsibility for repayment if you are unable to do so is known as a co-signer. Additionally, banks require a local contact in India for any due diligence while you are away.  In other words, whether applying for a loan from a public or private lender, having a principal co-applicant is required. A primary co-applicant and a financial co-applicant can be the same individual, although private lenders (private banks and NBFCs) require one during the loan application procedure.  The need for a co-signer  In many situations, having a co-signer for your loan makes sense.  Your credit is poor.  You don't make a lot of money.  You are a young person without any credit to your name.  You can get around these obstacles and be granted a loan by using a co-signer. If you and your co-signer are accepted, you might even be able to acquire interest rates that are lower.  However, a few things must be in place for this configuration to function:  Between the co-signer and the borrower, you should be confident that you can trust each other because the borrower will be demanding a lot from the co-signer.  The co-signer must be in good financial standing. Co-signers may not be permitted to co-sign on the loan if their credit is equal to or worse than yours.  The co-signer must be capable of making the loan payments on their own in the event that the borrower defaults on the loan.  Looking for a co-signer  Most borrowers who employ a co-signer pick someone close to them, such as their spouse, parent, grandparent, sibling, or a person with a similar relationship.  Sadly, not everyone has access to these choices, and in certain situations, family members may not have excellent credit, which is needed if they intend to apply for a loan with you.  Try contacting these people if you find yourself in this situation:  Friends: Do you have a friend that is trustworthy with money and has a stable income? Inquire if they would mind signing your loan as a favor.  Close relatives and cousins from extended family are all acceptable co-signers. Just make sure they have solid financial standing and decent credit (i.e., manageable debts and steady income).  Mentors: You can also consider finding a personal or professional mentor. Remember that they will need to know you well enough to have confidence in your financial routines.  Friends of your parents: You've probably known a couple of your parents' friends all your life. Are any of them willing to take a risk on your behalf?  Why do you need a co-applicant or co-signer?  A co-signer is essential to having the loan approved throughout the entire procedure.  Banks require some type of guarantee from borrowers that the loans won't turn into bad loans in the event of non-repayment for whatever reason. As a result, students have found it difficult to deal with the circumstance when they needed a co-applicant or co-signer.  In a scenario, where the student defaults on the loan after completing their studies, a co-signer assures that the lending agency's requirements are met and that there are reasonable prospects for the loaned amount to be recovered.  Cases where students' loan applications are denied because they lack a co-applicant or co-signer  For the processing of student loans from overseas, there are numerous channels available. The most crucial need for students to meet in order to proceed with the application for an education loan is having a co-signer.  However, this restriction is no longer a concern for students whose parents or other close family members are unable to serve as co-signer.  There are a few methods currently for processing a sizeable portion of the tuition cost through loans without needing collateral or a co-signer, so if a student doesn't have a co-signer, they shouldn't worry too much.  The granting of unco-signed, unsecured loans  Before granting a loan, banks, and NBFCs review a student's profile and take into account a number of variables. The likelihood that the loan will be approved and credited to the college's account at the time of admission or in the loan account is extremely high if a student meets the requirements established by the banks. Nonetheless, if you are a working person, the procedure may become simple, and acquiring the loan may also enhance.  The following considerations are taken into account while determining the loan amount:  The college to which applicants have been admitted.  The university belongs to the upper tier or the tiers below.  The candidate's credit history.  The sum of the scholarship received. (If any) 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 institution may sound fancy and appear aspirational. Still, it has expenses, and handling them can be challenging. So, here are some potential risks and disadvantages of utilizing student loans for study abroad, along with suggestions for reducing them. Drawbacks of using abroad education loans Student loans can be useful for acquiring domestic or international studies funding. However, it might not be as simple as you believe in obtaining a student loan. Although applying for the finest student loan program is simple, getting your loan accepted might include a number of challenges. Another important consideration is the interest rate on student loans, which is frequently higher than that on other types of loans. The problems with student loan debt are not limited to these. The following are a few drawbacks of student loan debt for international study: 1. You have to start your career with debt If you rely on student loans to fund your school, you will start off in debt when you become an adult. Yes, if you have a college degree, you may be able to earn more money overall than someone who only has a high school diploma. However, depending on how much debt you take, it could be challenging for the first few years after graduation, especially if, like millions of other college grads, you require assistance finding a job that pays enough to meet your expenses. 2. Defaulting on your education loans can tank your credit score Missed payments, student loan defaults, and taking on more debt than you can manage after graduation can all have a significant negative impact on your credit score or the credit score of your co-borrower. The worst case situation is defaulting since it means you could not pay back the lender for the loan you took out. 3. Education loans might not cover all your expenses Annual borrowing limits apply to the majority of federal student loans, and some private lenders could as well. Depending on how much tuition, fees, materials, board, and lodging will cost, you might still need to look for extra sources of income to finish your degree. https://www.youtube.com/watch?v=4gTQkdePOWM The potential risk of using abroad education loans Both lenders and borrowers run a substantial risk when providing student loans. Unlike other loans, student loan repayment is more unclear since it depends so much on the possibility that students will pass their courses and find employment. Students may receive negative feedback on their credit history, and lenders may suffer loan default if students don't complete the course or find employment in a timely manner. On the other hand, students are under a lot of stress, and high-interest rates may impact their ability to repay their debts on student loans. How to mitigate the risks and overcome drawbacks? When choosing the finest education loan for higher education, extensive research and comparison are required to mitigate the risks and have the least drawbacks. Compare the interest rates and repayment alternatives offered by several organizations before selecting an education loan. You could also speak with a professional. To help you save money, they can help you organize your repayment plan and negotiate a reduced interest rate. Determine how much money you need to pay for your higher education before taking an education loan. Consult an expert advisor to get the right plan TALK TO AN EXPERT FAQs Why are student loans good? Student loans are regarded favorably since they come with extra benefits that make studying abroad manageable. When you take out a student loan, the lender provides you time (a "moratorium period") to focus on your studies and choose a job before you begin making payments on it. Other loans, such as personal loans, house loans, etc., are not eligible for this choice. Does taking out student debt make sense? Yes, student loans are helpful since they reduce the pressure of paying for your expenditures through enticing programs given by banks to study abroad and many other things. Taking out an education loan is a realistic choice because it lessens parents' load, and the repayment terms are fair. Can I get an education loan for studying abroad without collateral? Yes, student loans are beneficial since they ease the burden of covering your expenses through alluring bank programs that encourage you to do things like study abroad. Even the financial team at WeMakeScholars suggests that getting an education loan is a sensible decision because it eases the burden on parents and because the repayment conditions are reasonable. The final tip is that 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!

Do you know that Indian students who wish to study in America have access to a variety of educational loans? Since the US is one of the most sought-after countries for Indian students looking for educational opportunities abroad, a conversation on student loans for US education is extremely pertinent. Few nations in the world provide as many advantages to higher education as the United States. Most of the best universities in the world are in the US, and the job prospects in the US after graduation are unsurpassed.  While promising, American higher education is also very expensive. One of the effective options for covering such enormously high prices is to take out student loans. You can find the best loan package for you if you conduct your research or enlist the assistance of knowledgeable loan counselors.  We will go into great detail about the various lenders, application procedures, and educational loan alternatives for Indian students who wish to study in the US in this blog.  Are student loans the best option?  An education loan gives you the readily available finances you need to achieve your goals. Even if you have savings to pay for your studies in the US, you should think about taking out an education loan because, with wise investing, you can earn more interest than you would pay for your loan.  Additionally, there are some tax advantages for student loan debt. The tax savings from an education loan over self-funding would be 4.5% under the new TCS (Tax Collection at Source) regulations. Since 1 US dollar is equivalent to more than 80 Indian rupees, this differential might be even greater for the US!  The following are a few of the top advantages of taking out a student loan to study in the US:  Personal savings are not affected.  Tax relief for student loans  Individualized loan products  Payment following graduation  Self-dependence  Unstressed study abroad in the US!  What should you look for while choosing a student loan?  Finding the best student loan is difficult. You need to consider a number of factors while picking the best lender.  When choosing the school loan program, you should consider a number of important factors, including:  Interest rates  Interdiction period  Processor charge  Prepayment fee  Fixed versus adjustable interest loans in USD and INR  Loan duration  Loan amount  https://www.youtube.com/watch?v=4gTQkdePOWM What types of student loans are available in India for studying abroad in the United States?  There are two types of student loans available in India for studying in the United States:  Secured loans for education are those that include collateral. As the name implies, in order to obtain an education loan, you must offer the lender a security interest in a piece of property.  This collateral comes in two varieties:  Tangible assets such as homes, commercial real estate, and retail spaces. Such as government bonds, life insurance, and fixed deposit accounts.  Unsecured student loans are those that lack any form of security. As the name implies, you can apply for an education loan without giving the lender any collateral. However, a co-applicant is required, and that co-income applicant will play a significant role in whether the loan will be approved. Additionally, there are very few private Indian and foreign lenders that give unsecured education loans for amounts over INR 7.5 lakhs.  What categories of lenders provide Indian students with loans for US higher education?  There are primarily 4 categories of lenders who offer education loans to Indian students who wish to study in the US:  Publicly traded banks  Privately owned banks  Non-banking financial companies (NBFCs)  Worldwide lenders  Each lender and every aspect of the educational loans they provide—including the maximum amount that may be borrowed, the requirements for eligibility, the interest rates, the length of the payback period, etc.—will be covered in full.  What costs in the US are covered by student loans?  In India, there are numerous loan programs that can be used to pay for nearly any price besides tuition.  Some costs covered by the study loans include:  Amount due to the college  The cost of lodging  Examination, lab, library, and cost  Instruments, books, etc.  Building money, refundable deposit, caution deposit, etc.  Traveling costs  Insurance deductible (if applicable)  Laptop (if required)   Other costs, such as thesis and study tours.  Which Indian government bank programs give the best education loans to students who wish to study in the US?  SBI Global Ed-Vantage: State Bank of India offers student loans for the US through its Global Ed-Vantage program for Indian students. A loan between 20 lakhs and 1.5 crore is available. The loan can be taken out for a maximum of 15 years, and repayment begins six months after the course is over. You must give collateral as security in order to obtain this loan. This collateral is primarily seen as the main source of security by SBI. The profile of the co-applicant is not very significant. If you want to get SBI RiNn Raksha insurance on your loan, you can additionally receive a 0.5% interest rate discount.  Bank of Baroda Scholar: One of the best public-sector banks for international student loans is the Bank of Baroda, which offers loans to students from all over the world, including the US. The bank has preserved a variable price structure according to the student's profile, course, and country because it recognizes that every study abroad student is unique. The majority of the top institutions in BOB's list are American educational institutions. For the colleges on the list, the BOB education loan offers a 100% margin, a 12-month moratorium term, and a low-interest rate.  Which of India's top private banks offers student loans for study abroad in the United States?  A few private banks in India offer loans for students who want to study in the US. The most prominent ones are:  Axis Bank: One of the biggest commercial private banks in India, Axis bank provides loans for students who want to pursue their studies in the US. Up to INR, 50 lakhs is the highest loan amount available for unsecured loans. Typically, the interest rate is between 11% and 15% per annum. For loans up to INR 4 lakhs, there is no margin money, whereas INR 4 lakhs and above have a 15% margin. There is no prepayment penalty, and the appropriate moratorium period lasts up to 12 months following the course's conclusion.  ICICI Bank: Indian students can apply for both secured and unsecured school loans from ICICI Bank to study in the United States. For secured loans, the maximum loan amount is INR 1 crore, and for unsecured loans, INR 50 lakhs. The introductory interest rate is 10.5% p.a. Up to INR 20 lakhs. There is no margin money; however, INR 20 lakhs and above have a 15% margin. There is no prepayment penalty, and the moratorium period lasts up to 6 months after the course is over.  Which NBFCs are the best at providing student loans for American universities?  HDFC Credila: The first specialized education loan provider in India is HDFC Credila Financial Services, which provides study abroad loans to more than 1000 colleges in more than 35 countries. The maximum amount for education loans from HDFC Credila without collateral is INR 50–60 lakhs. The interest rate is between 11% and 12.5% per annum. Students must pay interest during the study period, and the principal repayment process begins six months after the course is finished. There is no prepayment penalty, and the processing cost ranges from 1% to 2% of the loan amount (plus GST). A 12-year payback option is offered by HDFC Credila.  Avanse Financial Services: Avanse Financial Services provides educational loans to 1,262 universities and more than 6,000 courses in 44 different countries. The largest loan amount from Avanse that may be obtained without any collateral is INR 50 Lakhs. The interest rate is between 12.35% and 13.65% per year. Simple interest or partial interest must be paid by students during the study time, and repayment of the principal amount begins six months after the course is finished or three months after acquiring a job (whichever is earlier). There is no prepayment penalty, and the processing cost is typically 1% of the loan amount (plus GST). The maximum repayment term for Avanse student loans is 15 years.  Which leading international lenders provide loans for higher education to study in the USA?  MPOWER Financing: Education loans are available through MPOWER Financing for higher education in the US and Canada. Without a co-applicant or collateral, the education loan is available in USD and CAD. The maximum loan amount from MPOWER Financing without collateral is up to USD 1 lakh (INR 82 lakhs). For graduate courses, the interest rate is approximately 11.99%, whereas, for undergraduate courses, it is approximately 10.49. The payback period may last up to 10 years, and there is no buffer money required.  Prodigy Finance: Prodigy Finance is a UK-based financial institution that provides school loans to students based only on their academic profiles and does not require any collateral or co-applicants. Depending on the destination, the study abroad loan is available in USD and EUR. The interest rate is around 13.23% APR. The payback period may last up to 20 years, and there is no buffer money required. Six months following the course's completion, the repayment period begins. Visit Prodigy Finance Education Loan for more information.  What documentation is needed to apply for a student loan in the US?  The paperwork needed to apply for an education loan varies depending on the lender. The usual list of paperwork an applicant could require while requesting an education loan is as follows:  For the applicant  Identity proof can be provided through a valid government-issued identification card, such as a PAN, passport, driver's license, or voter ID card.  Address: A recent copy of your phone bill, the electric bill, water bill, gas bill, driver's license, or Aadhaar card.  Passport Academic History: Undergraduate, 12th, and 10th Grade Results Admissions Test Score (e.g. GMAT, GRE, TOEFL, etc.)  Letter of admission is evidence of admission. Cost and expense report. Two passport-size pictures.  If there have been any prior loans from other banks or lenders, a year's worth of loan accounting statements.  3 months' worth of pay stubs if the student has employment  Co-Statement Applicant's  (PAN or Aadhar or another form of identification)  A three-month pay stub (if salaried) or business address documentation  Most recent six-month bank statements  Form 16 for 2 years and ITR for 2 years  Own home evidence (E-Bill)  Photo the size of a passport  Mother of the applicant:  A passport-size photo   Aadhar or Pan Card as proof of address  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Severe health issues have emerged as a result of the current pandemic crisis. It has highlighted the importance of doctors and the healthcare industry in fighting the COVID-19 epidemic. But do you know how much medical school costs in India? Do you know where a doctor's journey begins? Yes, after earning an MBBS degree, a doctor's journey officially begins.  Students typically use student loans for MBBS in India to pay for their medical education. However, anyone who has applied for an education loan for an MBBS program will tell you how tough the entire procedure is and that most of the time there is little support from any financial organizations. What does that imply for students pursuing an MBBS in India?   Read this article through to the end if you're interested in learning more about the lenders who provide education loans for MBBS in India. This post attempts to provide you with the information you need. Types of student loans  Education loans are further divided into two categories because they are one of the main sources of finance for education.  Secured student loans: Secured student loans are made possible by the use of security as collateral. Here, in order to be eligible for an education loan, the borrower must pledge the collateral to the lender. Immovable property, liquid security, or any third-party collateral (such as a house, land with clearly defined boundaries, fixed deposits, government bonds, etc.) are the three main categories of collateral recognized as a security.  Unsecured student loans: Unsecured student loans are awarded based on the applicant's academic record and the financial situation of their co-applicant. In this, students are qualified for an unsecured school loan without having to provide any collateral security. Students must therefore pay close attention to the eligibility requirements stated by the financial institutions.  These are the two categories of student loans offered in India. If you're looking for an education loan for an MBBS in India, get in touch with our staff to get expert advice on education loans there. https://www.youtube.com/watch?v=4gTQkdePOWM Costs associated with a student's MBBS program in India  National Medical Commission (NMC) and Indian Government Authorities are responsible for affiliating and accrediting medical schools and colleges. They carry out inspections of medical colleges and other institutions and establish the rules required to uphold the highest standards and quality of instruction in medicine. The length of the MBBS program is around five and a half years, which includes a one-year Compulsory Rotating Residential Internship (CRRI). In India, there are around 542 medical colleges, 64 of which are PG institutions approved by the NMC.  After MBBS comes MS, a postgraduate program in some specialties like MS/MD/DNB or others. Students have the option to choose their own area of specialization. PG programs in the medical area typically last three years, while diploma programs last two years.  The price of an MBBS program in India may differ from one institution to another. Comparatively speaking, public institutions are less expensive than private ones. The majority of students look into several options to pay for their MBBS program in India. A student loan for MBBS in India is one of the greatest options.  APPLY FOR EDUCATION LOANS FOR MBBS Recommendations for MBBS education loans in India  Let's talk about the sort of education loan that is suggested for MBBS study in India now that we are aware that there are two types of education loans.  NBFCs and private banks offer unsecured student loans. They offer relatively slim chances for MBBS students in India to obtain an education loan. Financial organizations often do not provide student loans for MBBS programs, either abroad or in India. This post will go into further detail on the motivation behind it.  Therefore, in this instance, the only source providing a secured study loan for MBBS in India is government banks. However, students should not solely rely on this since government bank education loans have their own unique set of requirements.  Secured education loans are the best kind to use for an MBBS program in India.  The maximum loan amount for MBBS students: is up to 1.5 crore  1. Details about Secured Education Loan  Student applicants seeking secured student loans must provide collateral in order to be approved. For education loans, various types of collateral security are needed, such as houses, apartments, fixed deposits, government bonds, etc. Government-run banks will also take collateral from third parties, such as your friends, family, uncles, aunts, etc. When students directly approach banks to request an education loan using third-party collateral, bank representatives typically do not prioritize such situations. Overall, this causes the application for student loans to be delayed.  Advantages of securing a student loan  1. Moratorium The repayment holiday is another name for the moratorium period. It is one of the main benefits for students who use government banks to obtain educational loans. In this case, the student is not required to pay the lender anything during the moratorium. Read this article, Benefits of Moratorium Period, for more information.  2. Lower interest rates Compared to NBFCs and private banks, secured education loan interest rates typically range from 8% to 9%. 3. Affordable Processing Fees Government banks charge a fixed processing fee of INR 10,000, which is sometimes refundable.  4. Tax benefit: Section 80E Under Section 80E of the Income Tax Act of 1961, either the loan applicant or the co-applicant may take advantage of the income tax exemption for educational loans.  Conclusion  It follows that obtaining an education loan for MBBS students in India may appear to be an endless process. But if you learn enough about the entire process, it will make getting a student loan a simple process.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Making financial arrangements and figuring out how to pay for your education plays a decisive role when selecting whether or not to study abroad. Due to financial limitations, several students never even conceive of taking a plane abroad.   The majority of parents even see self-funding as a viable alternative to pay for their child's education by selling off valuable assets or by securing money from friends and family, but not all families are able to do so. Herein lies the role that student loans play. This article will provide you with a quick overview of the advantages of student loans and why they are preferable to using your own money to pay for your international education. You can also contrast student loans with self-funding to determine which is better.  Self-funding your international study  Most students find that taking out an education loan to pay for their studies abroad becomes a financial burden, thus they prefer self-funding as the best alternative to incurring further debt. Students, in one way or another, do not want to be burdened by EMIs when they may pay for everything at once.  What exactly qualifies as self-funding?  In the following cases, you might be regarded as self-funding:  When you are paying for your own studies, requesting financial aid from family, friends, or relatives, and securing funding from an outside source (excluding Government banks or any other education loan lenders). https://www.youtube.com/watch?v=4gTQkdePOWM How can you budget your way through college while paying for it yourself?  1. Budget for travel abroad  Financial planning is crucial for students who want to study abroad because it will help them avoid a lot of hassle and time in the long run. Students should also prepare for any financial emergencies that might arise throughout the course.  2. Find grants and scholarships Look into different grants and scholarships because they might be a big help if you're paying for your education on your own. Overall, this will help you pay for your international education and will be advantageous to your international higher education program.  3. Look for a part-time position Choosing part-time work while you are in school will help you advance financially and professionally. You might take advantage of a chance to hone your abilities and take care of your living expenses while traveling. You wouldn't have any financial burdens while studying abroad if you did it this way. Student loans for international study  Today's students demand superior education because they are more career-focused than ever. With traditional finances, such as borrowing money from family and friends, it would be nearly impossible to pay for your child's complete high-quality education with your years of savings.  When they don't have enough money to cover the high living costs and tuition for an overseas degree, students choose to take out an education loan. One of the main advantages of student loans is this. Varieties of student loans  There are two distinct loan types:  1. Loan with collateral or a secured loan  Secured or collateral loans are those that are granted in exchange for collateral security. The lender will be partially compensated for any outstanding loan debt when a borrower pledges collateral in exchange for a loan. If the payments are not made on time, they have the right to sell the property and seize the collateral. In India, the best sources of collateral loans are government and private banks.  2. Unsecured loans or non-collateral loans  Non-collateral or unsecured loans are those that don't require any form of collateral. In this case, the borrower can get a loan without putting up any security. Unsecured loans are an option for students who lack the assets to provide security. However, when choosing unsecured loans, criteria such as parents' income, university ranking, and fees, among others, are taken into account.  Self-Funding Vs Student loans: Which one is better?  1. Save your personal money to save your family.  To pay for your study abroad, self-funding typically entails liquidating all of your money and precious assets like gold, FDs, insurance, flats, and land, whereas an education loan allows you to keep all of your resources and preserve your collateral with punctual loan payments. Additionally, it would save your family money because they may use it for unforeseen family expenses.  2. Financial advantages  You cannot take advantage of any financial advantages associated with education loans, such as lower interest rates, reasonable payback terms, repayment holidays for students, government subsidies, etc., when paying for your own international education. This is one of the main advantages of taking out an education loan, though.  3. To secure entrance, provide proof of payment When you pay for your own education, the university requests a solvency letter to confirm your enrollment. When applying for an education loan, your bank will provide a solvency letter as proof of money, but students must show the university that they have the equivalent of one year's worth of payments plus 50% more in their accounts.  4. Moratorium period  The main benefit you receive when taking out a student loan from a government bank is a moratorium period. The moratorium period, often known as the course duration plus six months or a year, is essentially a loan repayment holiday during which you are not required to make payments to the bank. In contrast to those who self-fund their education, students who take out an education loan from a government bank have the option of extending their repayment period by up to 15 years.  5. The quick arrangement of big sums of money  When you pay for your own higher education, you must make long-term plans and save money. The biggest disadvantage of self-funding school is that it may be difficult to secure significant sums of money quickly, but if you take out an education loan, the bank will make periodic payments of the needed amount. Therefore, if a student needs to arrange significant finances in a short amount of time, they can do it by requesting further loans for their education against the value of their collateral.  6. Several costs are covered  When you self-fund your education while studying abroad, it can be challenging to manage costs like housing rent, tuition, food, etc.; but, when you take out an education loan, all of your necessary costs, including rent, food, laptops, etc., are included in the loan amount.  7. Changes in exchange rates  When there is a shift in currency rates owing to rising inflation, the cost of education also changes, making it difficult for students to self-fund their education. In contrast, your sanctioned education can be very helpful at this time.  Conclusion  Most of the time, it is advised that students take out an education loan rather than pay for their education themselves because doing so has additional benefits. Students are finding it difficult to secure the cash they need to continue their studies due to the rising inflation. A pandemic, when the nation's economy has been severely impacted and students are struggling to pay for their education, is the ideal time to apply for an education loan.   Consult an expert advisor to get the right plan TALK TO AN EXPERT

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.  https://www.youtube.com/watch?v=4gTQkdePOWM 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