GradRight | Best Education Loan to Study Abroad

For most Indians “studying abroad” and “education loans” come together.

An education loan for studying abroad is one of the most important decisions.

But with so many banks and lenders, the selection isn’t easy. Sometimes, you might even have to compromise on your dream university.

Don’t worry, we have got your back.

FundRight can help you get a student loan for studying abroad with the lowest rate of interest with zero collateral.

How, you ask?

This is how. 

Now, let’s get you the perfect education loan.

How To Select The Perfect Education Loan For Study Abroad?

Before you go out and start applying for student loans, there are a few things that you must be aware of.

Here are the five most important things that you need to understand to select the best loan for you.

1. The Total Loan Amount You Need

You need money for your tuition, accommodation, travel, etc. The amount of money you get (or can get) plays a major role in your higher education. Your first step in the journey to get an education loan for studying abroad starts with selecting a budget.

It decides the country of study, the college you can go to, the course you can pick, the house you can live in, and more. It also decides another crucial thing.

It decides the level of financial sacrifices your parents have to make.

Here is how you can easily estimate the amount of loan you require.

• Pick a college and a course, and find out the tuition fee.
• Look up the cost of living for that town.
• Add 20% of the cost of living as “miscellaneous expenses”.

Add it all up and you can get the approximate amount you need.

To keep your loan amount the lowest you need to choose the right university for you. Based on your merit and career choice, the right university will save you a ton of money.

We can help you select the right university. A university that will be the best investment for your career and gives you the best opportunities.

After you finalize the amount of your loan, you need to think of the repayment period.

2. Loan Repayment Period

You need to know three things.

• Shorter repayment period = higher rate of interest.
• Longer repayment period = more money as interest.
• Moratorium period: The period of time in which you are not obligated to make payments (but the interest accrues).

Depending on your lender, your moratorium period could vary. Usually, it is one year more than your course duration.

Our recommendation is you take a shorter repayment period so that you will pay less in the course of repayment. However, you also need to consider your situation and make a decision on that basis.

The most crucial thing before you select a loan (or a lender) is the rate of interest.

3. Rate Of Interest Of The Loan

Your life depends on it.

Suppose you take a loan of ₹22 lakhs with a 300 basis point difference, you will be paying nearly 30% of the principal by the end of a decade.

That is a lot.

FundRight can save you between 2% to 5% on your student loan’s interest rate.

No hidden fees.

We will have 14+ banks, NBFCs, and international lenders bidding competitively for you.

But which lender will be the best for you?

You decide, because this is how Indian students find their best education loan.

4. Preferred lenders

You can get your education loan for studying abroad from banks and Non-Banking Financial Companies (NBFCs).

While choosing a lender, check if your university has any affiliations with your bank or NBFCs. It will get your loan approved fast and your interest rates will decrease significantly.

Another thing that you must check is margin money. That is the amount of money you can pay from your own pocket for your education. It varies between 5% to 15% depending on factors like choice of university and preferences of the lender.

Generally, banks and NBFCs choose who they give an education loan.

At FundRight, you choose your lender.

Rather than you competing for approval, FundRight gives you the freedom to choose a lender based on your requirements.

Before you take a loan, you must think about how you can pay it back.

5. Future Earning Estimations

You want to repay your education loan, right?

This is the most important part. Do a deep dive and analyze the career opportunities you might get through your field of study. The majority of banks and NBFCs evaluate this critically even if it is a collateral loan.

There is one disadvantage when you are applying for student loans for studying abroad from traditional banks. They are more likely to evaluate your field of study through an outdated lens and put more importance than necessary on that.

Most banks only recognize the top 1000 universities globally and approve loans based on that bias.

This is unfortunate, especially for truly meritorious students.

FundRight lets you find your best education loan based on your merit and nothing else. Because lenders bid on your loan, you benefit from the competition. Whims and opinions won’t sway the opinion of the risk assessment officer of any bank, when you look for your education loan via FundRight. 

We have discarded the blurred and outdated mindset while evaluating your profile. Our lenders only see the information necessary and nothing more.

Now, let’s jump into the application process.