Education is costly affair these days especially when you want to go abroad to pursue study of your choice. Getting the course of your choice depends on your hard work but taking admission in your preferred college depends on your pocket size. The best way to make you dream of studying abroad real is by taking abroad studies education loan and pursue your studies without a financial crunch.
If your sole aim is to study abroad and you are thinking of taking an abroad studies education loan, here are few points which you must consider while taking study abroad loan:
· Market search about various banks and financial institution
You must do some research work on banks and financial institution for taking study abroad loan before finalizing the one. You should finalize the bank or financial institution on the basis of the elements like low Interest Rate, no prepayment penalty, minimum or no collateral required and flexible repayment options.
Know the study abroad loan thoroughly
Make yourself clear about terms and conditions like what is the interest rate? What are the costs covered under abroad studies education loan? Are there any charges for processing the study abroad loan? What is the repayment tenure?What is a holiday / moratorium period?
· Knowledge about your collateral property
You must have collateral property like land, building, government or public sector bonds, life insurance policies, bank deposits, mutual funds or even gold to take abroad studies education loan above Rs. 4 lakh.
· Know your monthly EMI amount
You must calculate the amount of your monthly payment to understand how you are going to manage and accordingly prioritize your budget. You definitely don’t want payments are taking up a large portion of your budget and you don’t have money left for the essentials and some entertainment.
· Know the repayment options
You must get knowledge about the various repayment options available to you. The convenient repayment options are specially created to so that people can repay their education loan amount properly and on time. Various banks and financial institutions are offering customized repayment options to address the needs of their individual customers.
· Know the tax benefits
You must know the tax benefited associated with the study abroad loan as not all abroad studies education loan can qualify for deduction. If take the loan from an approved financial institution or an approved charitable institution, can you claim this benefit. This tax benefit is allowed under Section 80E of the Income Tax Act. The moment you start repaying the study abroad loan, you can deduct the interest amount from the total income while calculating tax. This means the effective interest rate on the loan works out to a lower amount.
Taking abroad studies education loan is a serious affair and requires some serious considerations too, especially in current economic slowdown. Keep all of above points in mind while taking study abroad loan are a good option for you.