STUDY ABROAD EDUCATION LOAN

Living and studying in the US can be a dream come true for many students around the world. However, it can also be a very expensive experience. Many students often rely on education loans to finance their studies abroad. In this article, we will discuss how to get an education loan for MS in the USA or any other study abroad program.

Loan Application Process

The loan application process generally starts in October, and there are three main steps involved:

Documentation: You need to submit all the required documents to the lender, such as your admission letter, academic records, and financial statements.

Evaluation: The lender will evaluate your application and determine whether you are eligible for the loan or not.

Proof of Funds: You will need to show proof of funds to the university or college before you can get the loan.

Six Key Points to Remember Before Applying for a Loan

Before you apply for an education loan, there are six key points you need to remember:

Loan Amount:

Different lenders have different terms and conditions, and not all lenders will give you the same loan amount. You need to determine how much money you need and find a lender that can meet your requirements.

Rate of Interest:

Private banks like NBFC usually have a higher rate of interest than public banks. Public banks provide a higher loan amount than other lenders.

Loan Tenure:

 Private banks usually give eight to ten years to repay the loan, while public banks give 15 years to repay the loan.

Processing Time and Fees:

 Private banks and NBFCs usually take more time to process loan applications and charge higher processing fees than public banks. However, if you apply for a loan via Gyan Dhan, the processing time will be much lower, and in some cases, you can also get a rebate on your processing fee.

Expenses Covered:

Lenders will never give you the full amount of loan you need. There is always a deficit amount that you need to arrange yourself, which is called Margin Money. The margin money for public sector banks is around 8-10%, while there is no margin money in NBFC.

Moratorium Period:

 A moratorium period is a particular period during which the borrower does not have to repay anything. Public banks usually provide a moratorium period of six months plus course length, while private banks and NBFCs charge simple interest during the study period.

Different Lending Options

There are different lending options available depending on whether you have collateral or not:
Collateral: If you have collateral, you can directly approach a public sector bank. The rate of interest, loan amount, moratorium period, processing time and fee, expense covered, and loan tenure are better in the case of public sector banks and NBFCs.

Non collateral

If you don’t have collateral, you can apply for an education loan from private banks, NBFCs, and international lenders. In this case, you need a co-applicant. Private banks prefer NBFCs, and NBFCs prefer international lenders. The rate of interest and processing fee are lower in the case of private banks compared to NBFCs.

lenders consider the following points:

Co-Applicant’s Income:

If you get a loan on behalf of your parents, you need to fulfill the minimum income requirements of the lender.

College and University:

Lenders have their own lists of approved colleges and universities. If you need to take a loan from a lender, you need to check if your college or university is on their approval list. Apart from the points mentioned above, there are a few other factors that you should consider while

Gyan Dhan .

Gyan Dhan is a financial technology company that helps students in India to obtain education loans for their studies, especially for higher education abroad. They offer a range of services including loan counseling, loan application assistance, and scholarship guidance to help students access the funds they need to pursue their academic dreams.

To contact Gyan Dhan, you can visit their website at www.gyandhan.com and use their contact form to get in touch with their team. Alternatively, you can email them at [email protected] or call them at +91-888-222-9988. They also have offices in several cities in India, including Delhi, Mumbai, Bangalore, and Hyderabad, where you can visit them in person for assistance.

Applying for an education loan for MS in the USA.

Credit Score:

Your FICO rating is a proportion of your reliability. A high credit score indicates that you are a responsible borrower and are more likely to repay your loan on time. Most lenders check your credit score before approving your loan application.

Interest Rates:

 lender to lender Interest rates can vary. Make sure to compare the interest rates of different lenders before selecting one.

Repayment Terms:

You should also consider the repayment terms offered by the lender. Some lenders offer flexible repayment options, such as interest-only payments during the study period or a grace period after graduation before the repayment begins.

Loan Disbursement:

You should also check the loan disbursement process. Some lenders disburse the entire loan amount at once, while others disburse it in installments based on the actual expenses.

Conclusion

Getting an education loan for MS in the USA can be a daunting task, but with the right information and preparation, you can make the process smoother. Remember to do your research, compare different lenders, and consider all the factors before making a decision. If you feel stuck at any point, do not hesitate to seek free assistance from platforms like GyanDhan. Good luck with your loan application and your dream education!

frequently asked questions

Q: Why is getting an education loan for MS in the USA important?

A: Getting an education loan for MS in the USA is important because the cost of education in the USA is generally high, and an education loan can help cover the expenses. Additionally, an education loan can also help build your credit history and improve your chances of getting a job after graduation.

Q: When does the application process for an education loan generally start?

A: The application process for an education loan generally starts a few months before the start of the academic year for which you are seeking the loan. It is important to start the application process early to have enough time to gather all the necessary documents and complete the application.

Q: What is margin money in the context of an education loan?

A: Margin money, also known as a down payment, is the amount of money that you are required to pay upfront when taking out an education loan. This amount is generally a percentage of the total loan amount and is paid to reduce the risk for the lender.

Q: What are some other factors that you should consider while applying for an education loan?

A: Some other factors to consider while applying for an education loan include the interest rate, repayment period, and any associated fees. It is important to compare different loan options and choose the one that best fits your financial situation and future plans.

Q: Where can you seek free assistance for an education loan application?

A: You can seek free assistance for an education loan application from various sources such as your college financial aid office, non-profit organizations, or government agencies. These resources can provide information on loan options, help you complete the application, and provide guidance on managing the loan after graduation.