Studying abroad is an exciting opportunity, but it comes with a hefty price tag that may not seem affordable to many. That is why, many students are turning towards education loans to ease the financial burden, so they can focus on their higher studies in a foreign country, instead of having to juggle between managing finances and studies or giving up on their dream altogether. While education loans are gaining a lot of popularity, getting approval for a loan to study abroad can get tricky if you are unprepared. To help you out, here are the top five tips that can help you secure an education loan for studying abroad.

Start Early and Put in Some Research

The first step to securing an education loan is to start as early as possible. It is a good idea to start the loan application process well in advance of your date of joining at any foreign university. This means that you will have to start doing some research even earlier. Different lenders have different eligibility requirements, borrowing terms, interest rates, etc. So, take time to research different options and apply for a suitable loan scheme. You can consider availing an education loan from Avanse Financial Services, where you get flexible repayment options and competitive interest rates.

Understand the EMI Commitment

Before you apply for a loan to study abroad, make sure you understand the impact of the loan on your future finances. Use an education loan EMI calculator to get an idea of the EMI that you will be liable to pay each month. This will help you determine if the loan you are planning to avail is affordable for you in the long run or not.

Check Eligibility and Documentation Requirements

Each lender will have different eligibility requirements. In terms of documentation, you are generally required to provide identity proof, proof of admission to a recognised foreign university, along with financial documents, like income proof, tax returns, and collateral documents for borrowing large sums of money. Ensure that you meet the eligibility criteria and gather all the necessary documentation before applying for the loan.

Consider a Co-Signer

Having a co-signer can significantly increase your chances of securing an education loan. Most lenders may require a co-signer for the loan, especially if you do not have a strong financial background or substantial income. Applying with a guarantor or co-signer will help you lower your interest rate and avail more favourable borrowing terms.

Opt for a Loan with a Flexible Repayment Plan

Look for loans that offer flexible repayments, such as deferred payments or long repayment tenures. With an education loan from Avanse Financial Services, the repayments for the loan begin only after you have completed your course and after a set moratorium period has passed.