Know How Kottayam Students Get an Education Loan

Every year, thousands of students living in Kottayam plan to study overseas because they experience a high quality of education. Well, it is not an easy task because studying abroad is way too expensive. Due to this, many students drop their plans to study overseas. However, an education loan can be the best solution to this problem. Well, if you are curious to know how, then you are at the right place. Read this article and know all about study loans from the best study abroad consultants in Kottayam City.

What is an Education Loan

Let's start by understanding what is a study loan.

A study loan is a financial support granted to a student. It helps them to manage their finances and complete their education. However, it benefits them in a lot of ways. Let's understand how.

Benefits of Education Loan

There are many benefits of an education loan. Every student who is planning to study overseas must know them. It will help to make a strong decision for reducing the financial burden.

Reduce Financial Burdon

A study loan covers all the educational expenses such as books and supplies, laptops, annual tuition fees and more. In addition, some of the loan schemes cover flight tickets and exam fees. Thus, it helps the students to save a lot of money and reduce their financial burden.

Low Interest Rate

The interest rate of an education loan is lower than that of a personal loan. Thus, it makes it a cost-efficient way to finance the overseas study journey.

Flexible Tenure Period

Students get a chance to choose a tenure of 7 to 10 or 15 to 20 years to repay the loan amount. Thus, it makes an easy and flexible EMI.

No Need to Dissolve Valuable Assets

Loan providers don't ask to deposit some valuable asset of equivalent value to the loan amount. Due to this, students can get a loan easily and enjoy its benefits for a long time.

No doubt, an education loan helps students to manage their finances for their abroad studies. Well, it is not easy to get one because of its categories. Let's see why and how to select the best option.

Categories of Study Abroad Loans

There are two categories of study abroad loans. However, let's know about them in detail. It will help you to select the best one.

Secured Education Loans- Students have to deposit their valuable assets such as land papers, FD and so on as security money to get a secured study loan.

Unsecured Education Loans- It doesn't ask for any type of security deposit. However, the loan amount is up to 7.5L. That's why most students who wish to study overseas don't apply for it.

Now, you can select the best loan category but the question is from where to get it. So on that note, let's see some of the top loan providers.

Types of Education Loan Providers

There are mainly 5 types of study loan providers. Let's know about all of them in detail.

Public Banks- These are government-ruled banks that offer a study loan at a low interest rate. For example- the State Bank of India.

Private Banks- These banks offer a study loan at a high rate of interest. Examples of private banks are- HDFC, ICICI and many more.

Government Scheme- These are the scholarships and financial aid granted by the government of India. It covers the maximum parts of overseas education.

NBFCs- The full form of NBFC is non-banking financial companies. These are private firms that offer financial aid amount to support education for students.

International Leaders- Some of the industry leaders grant financial aid to students who wish to study overseas.

Now, you know the best loan providers. So, on that note, let's know the steps to request it.

Steps to Apply for an Education Loan

There are several steps involved in the process of requesting a study loan. However, Kottayam students know it. So they take help from the best study abroad consultants in Kottayam. These experts guide some easy steps to request for the loan. However, let's see all the steps here.

First, check for eligibility.

Accepted by a reputed college

Evaluate the loan amount.

Look whether banks acknowledge your course or not.

Compare the interest rates and benefits from several banks.

List a co-applicant (if any)

Prove your relation with the co-applicant.

Arrange necessary documents

Fill out the loan application form and submit it with supporting documents.

The bank will provide you with the terms and conditions for the loan amount re-payment. However, accept them and get a study loan.

To Sum Up

Every year, many students from the Kottayam plant study abroad at the top destinations. However, it is not easy because they need a lot of money to manage their studies and live abroad. So they take help from the best study abroad consultants in the city. These experts guide them to apply for a study loan. This is because it helps in reducing the financial burden. Due to this, students can enjoy their overseas study journey.