Complete Guide on How to Finance Your Education Abroad Using a Personal Loan
The cost of higher education is increasing. In recent years, many students have opted for study abroad programs to further their studies; however, the high costs can be difficult to manage when you have to fund it on your own. If you want to finance your education abroad, consider applying for a personal loan. A personal loan can help you pay for tuition and other expenses such as books and housing while giving you access to flexible repayment options that fit your budget.
Why Do We Need to Finance Education?
Education is the key to success. It helps you achieve personal and professional growth. It changes your perspective on the world and makes it easier for you to understand it.
Education loans come in many forms. These can be grants, scholarships or student loans. The most common is student loans, usually paid back with interest later (after graduation).
How to Fund Your Education Abroad Using a Personal Loan?
A personal loan is a flexible way to fund your education abroad. It can help cover all costs while studying abroad. These personal loans allow people who don’t qualify for student loans or have no credit history of applying. The interest rates are higher than those with student loans.
Features of a Personal Loan to Finance Abroad Education
- Most of these loans benefit students. The main applicant is the student, and the co-applicant could be an elderly parent or a family member. These loans are available in both local currency and US dollars.
- Generally, personal loans for higher education are offered at a fixed interest rate that remains constant over the term of the loan. There are no hidden charges or fees involved.
- Most of the time, no collateral is needed for a student loan. Yet, some banks may ask you to pledge your savings account as collateral.
- Students can use personal loans for higher education to pay back any outstanding balance on their educational loans and living expenses while studying at a university.
Benefits of Personal Loan for Higher Education
- Personal loans are easy to avail of when you need them the most. The entire process of availing of a personal loan is simple. It takes a few minutes to apply for a personal loan, and once you receive approval from the lender, your funds are transferred into your account within 24 hours.
- One of the best things about personal loans for higher education is that they give you flexible repayment options. Some people choose to pay on a monthly or quarterly basis. The best part about these choices is that lenders don’t charge extra. This means if you have access to more capital than you need at once, you have plenty of options for paying them back.
- The biggest benefit of taking a personal loan for higher education is avoiding debt traps. Many people end up with huge debts after graduation and have no idea how to repay them. Personal loans allow students to study without worrying about the financial burden.
- One more major benefit of taking personal loans is their flexibility. You can use them for any purpose, including tuition fees and accommodation costs. With the help of these loans, you can easily meet your financial obligations after graduation.
Documents Needed for Personal Loan for Higher Education
To avail of a personal loan for higher education, your lender will need the following documents.
- Identity Proof: You need to submit two documents as identity proof. These are your passport or an official photo ID (driving licence/pan card / Election Card / Aadhaar Card).
- Address Proof: You need to provide some official document that contains your current address. This could be a copy of an electricity bill, phone bill or even a letter from the bank stating that the current address is correct and has been updated in their records.
- Income Proof: The lender will need proof of income if you are applying for a personal loan. This could be your salary slips for the last three months or any other document that mentions your name and address along with the amount of money you are paid in salary per month.
Tips to Get Personal Loan Approved for Education Abroad
You might wonder how you can finance your education abroad with a personal loan. Well, here are some tips that will guide you:
- Choose a reliable lender.
When applying for a personal loan, make sure the lender is trustworthy. This will help you avoid fraudulent companies and scammers. Look for positive reviews from other customers who have worked with them.
- Be ready with all the documents.
Before applying for a personal loan, it is vital to ensure that you have gathered all the necessary documents. Some of these include proof of income (such as payslips), copies of utility bills and bank statements.
- Estimate your expenses and income.
When applying for a personal loan, you should ensure that the amount you are looking to borrow is, at most, what you need for your education abroad. You should also calculate all the expenses associated with your education and compare them with your income. This will help you determine if you can afford to take out a loan.
- Choose the right repayment plan.
Most personal loans allow you to repay your debt over 10 years or more. Considering your current financial situation and future goals, you must choose the best repayment option.
- Make sure you are eligible for a personal loan.
Before applying for a personal loan, it is vital to make sure you are eligible for one. This can be done by checking your credit score and looking at other factors, such as your employment status and current income.
- Apply online.
Once you have gathered all the necessary documents mentioned above, apply online for a personal loan from any bank or financial institution of your choice.
Apply Online for a Personal Loan
Applying for a personal loan online is easy and convenient. You can apply for a personal loan at any time of the day or night. The application form is short and easy to fill out, so you save time. Furthermore, the entire process is fast and allows you to receive the money within days after approval.
When you apply for a personal loan online, you can choose the best lender. This way, you will receive the best rates and terms of the market. If you want to compare rates and conditions from different lenders, it’s easy to do so. You can use the comparison tools provided by most banks and financial institutions.
Conclusion
We hope this article helped you understand all the aspects of a personal loan and how it can help you finance your education abroad. The process is simple, but knowing what financing options are available is important to choose the best one for your needs.
If you have questions about this topic or want more information on financing your education abroad with a personal loan, please go through Piramal Finance blogs and explore their products and services.