3 questions to ask lenders when you plan to take an educational loan

Higher education has helped millions of students learn their choice of courses and become successful professionally. Though, there has always been one obstacle in the course of gaining higher education: money needed to fund its costs. Lenders came up with a solution for this problem—education loans. It doesn’t matter whether you want to study in India or abroad; education loans help you fund your higher education anywhere. Say, you want to study in Singapore, but you do not have money to cover your education costs there; you just have to search a phrase like ‘study loans Singapore’ on Google to find out about lenders who would finance your studies there. As there are so many lenders in the market ready to give you education loans, you may end up taking a loan that doesn’t provide services as you expected it to. To help you with selecting the right lender for yourself, we have curated a list of questions that you should ask them.

1. What kind of education costs will be covered?

Ask the lender, “What kind of education costs will be covered?” For instance, if you decide to study in Singapore, you will need money to travel to Singapore, and sustain a decent lifestyle there for the duration of your course. You will also need money to cover the exam fees and prep classes fees to appear for different exams like IELTS, GRE, and so on.

Once you gain admission into a Singaporean university, you will need money to pay the course tuition fees, the university library fees, and buy books, stationery, and a laptop.

Ask your lender whether they will cover all of these costs in your education loan for abroad studies.

2. How much interest rate will be charged?

The interest rate charged on a student’s education loan decides how much money he will pay from his pocket for settling it off gradually. The lower the interest rate, the lesser amount of money the student will pay as interest on the loan, and the more money he will save in the long run.

Usually, the interest rate charged on education loans in India lies in the range of 9 to 14 % per annum. Ask your lender to keep the interest rate of your education loan as less as possible.

3. What are the loan processing time and fees?

Students have to pay their course tuition fees before due dates to gain admission in a course at their choice of university. They need money punctually for that purpose. So, a lender that offers to process the educational loan application as fast as possible will be more endearing to them.

On a similar note, students do not want too many charges being levied on their education loans. Such charges drive the total amount of money borrowed higher. Students want education loans that aren’t too heavy to repay.

Ask your lender, “How much is the loan processing time and fees?” This will help you select the most suitable lender for yourself.

So, these are the 3 questions you should ask lenders when you plan to take an education loan for abroad studies. Have a nice day!