You call the bank, yet again, in your journey to find the perfect education loan for studying abroad.
Yet another voice from the bank says to you:
- “We will reexamine your profile and get back to you.”
- “We’re yet to hear from our loan officer.”
- “We need the photocopies of your 10th class mark sheets again.”
Can this stop? Is this how the Indian student deserves to be treated, while they’re juggling swords in their quest for foreign study education loan?
In this guide, we’ll tell you how you can kick out the stress and anxiety as you find your education loan for studying abroad.
Banks Compete For Your Study Abroad Loan and You Relax
Taking an education loan for studying abroad is the most important thing for many Indian students who wish to study abroad.
The process starts after you have selected the right university.
Listing out banks, getting documents ready, and creating a financial plan are some of the many things that you and your family will have to go through.
All this hard work kills the excitement of going abroad and starting a new journey.
FundRight, India’s first loan bidding platform, solves all of your problems related to securing a perfect education loan for study abroad.
The best part is you don’t have to leave your house.
Let’s start by understanding the problems we can solve for you, as we have for countless students.
Why Getting An Education Loan For Study Abroad Is Difficult?
Below are the five most prevalent challenges while looking for an education loan to study abroad.
1. Running Around Multiple Banks
After you have made the list of the banks you will be applying for loans to, you will be reaching out to them. The most common issue here is there is not a lot of information on the websites of those banks.
Personally visiting banks and explaining your situation is tiring, to say the least.
You will have to show up there with some documents. Then, you have to wait till the person of interest is available to talk to. Many hours will go by the time you have explained your international student loan requirements.
What’s worse is, you will not get any kind of real answer. Bank managers and their assistants are great at stringing people along by giving vague replies.
IAT: Education loan for study abroad – FundRight
Even though you have explained your profile to them.
And that is just one bank.
2. Weeks Of Delay Before You Get An Answer
Another common challenge that loan applicants face is the number of times banks and lenders take to give you a definitive answer.
More often than not, you might have to follow up in person. Go to the bank physically, wait until the person in charge is available and remind them that you already spoke with them.
Then you have to run your profile by them, in brief, one more time.
You will be lucky to get a solid answer from them. Generally, bank employees bide more time by adding more forms and steps that you need to complete to get an answer. Being asked to go to another counter and fill out another form is quite common.
The details like loan amount, rate of interest, etc., are provided to you after a few weeks of running to and fro the bank or the moneylender.
Generally, it takes 2-3 months (sometimes even more) to get the funds in your bank account.
3. Lots Of Paperwork
If you don’t already, you will need a folder to arrange all your documents.
You will need your property papers (in case of collateral loans), your current bank statements, clearance statements, etc., to get your loan approved.
Obtaining each of those documents is compulsory for you to secure an international education loan for study abroad. But the challenge doesn’t end there. You will also have to submit any other document that the banks request.
For instance, some banks require your academic profile before they approve your loan.
Securing those documents in relevant formats will take you months at the least. In many cases, you have to make certain corrections if they are not right according to the bank. For timed documents, you have to redo them again and again as the weeks go by.
4. High-Interest Rates
A student loan to study abroad doesn’t come cheap and the interest rates signify that.
It is quite common for USA-bound Indian students to get loans at around an 8% rate of interest. The main reason for such high rates is that traditional banks will evaluate your profile based on outdated metrics.
Metrics such as earning potential during the course and after graduation. All of the industries have changed drastically and so has the earning potential of members within.
Most Indian students who want to study abroad don’t get the perfect education loan because they are stuck with other problems. Problems such as collecting documents for the banks, or researching different universities.
The unfortunate thing is many students accept these unreasonable rates of interest as they are unaware of better options.
5. Lack Of Unbiased Expert Guidance
Online forums, blogs, social media, etc., are flooded with questions from students who are looking for the best loan to study abroad.
There is one thing common with all of them.
None of their questions are answered by unbiased experts.
Their answers mostly come from agents of oversea consultancies, and students who themselves don’t have a lot of ideas. The answers they get are biased and incomplete, often pushing them to make the wrong financial choice.
Agents will try to sell you things that you don’t want by lying to you. Their whole aim is to make money off of vulnerable individuals. Students, although they want to help you, they only know the scenario of the university they joined.
A complete, expert opinion is rare.
How India’s 1st Loan Bidding Platform Gets You The Best Education Loan For Study Abroad?
FundRight helps students in five ways.
1. Get Funding Options In Two Days
FundRight will send funding options to your inbox within a day.
All you need to do is answer a few simple questions so that our bidders get to learn a bit more about you.
You have to do it just once and it takes a few minutes to complete.
After assessing your profile, we will send you the best options that we think will be perfect for you. We consider only relevant metrics. We only care how meritorious you are and what your future career goals are.
Because those are the only things that matter when giving out educational loans to study abroad.
2. Choose The Moneylender That Is Best For You
You get to choose.
We will have 30+ lenders as of April 2022 and their number is constantly increasing.
FundRight will have them competing for your approval. You can review the terms and conditions of each of them and make the choice that is the best for you. Unlike traditional banks, we believe in empowering the students.
You can evaluate your financial options on the following basis.
- Moratorium period: The time duration in which you are not obligated to pay.
- Rate of interest: It compounds monthly.
- Repayment period: Longer repayment period means you will have to pay less in one instance.
The best part is you don’t even have to leave your home. Just fill up your FundRight profile and we will get you sorted.
3. Submit Your Documents Only Once
With banks, you will have to submit your documents every single time you apply to a new bank for a loan.
You have to upload your documents once with FundRight.
Unlike banks, you won’t have to go to different lenders and Non-Banking Financial Companies (NBFC). Here, lenders come to you. We will have your profile examined by our lenders so that they can give you their best offer.
We will also keep your data secure and encrypted.
The lenders in our network will only see the necessary details. The information that they need to decide if they can grant you an educational loan to study abroad. Nothing more.
4. Low Interest, No Collateral Loans
The reality is it is easy to get the following kinds of loans.
- Low interest, but you have to put collateral.
- No collateral loans, but with a higher rate of interest.
Putting your land or house on the line for a degree is something that puts many Indian students in a difficult place. Even though the potential career opportunities for that course are massively high, it is too huge of a risk.
On the other hand, high-interest loans are unfair for many reasons than one. It means you will have to pay more and your family will have to make larger sacrifices.
Fortunately, FundRight comes in with a third, and the best option.
You can easily save from 2-5% in interest on your non-collateral student loan for studying abroad as compared to other lenders.
5. Advice And Guidance From Experts
While you go through this process of securing funds to study abroad, you must have lots of questions. Earlier in this article, we have already explained the issues that you will encounter while relying on the wisdom of public forums.
Here, we do things differently.
We will put you in touch with experts who have helped countless students and alumni who have been in your shoes. They will answer any of your questions related to securing a student loan for studying abroad.
They can also give you a deeper insight into how quickly you can repay your loan based on your field of choice.
The answers you will get from them will be unbiased and will be centered around your best interests.
FundRight gives you low interest, non-collateral loan options within 48 hours.
Not only that, you don’t have to run from one bank to other, playing their game and leaving everything to fate.
Plus, our experts will help you by answering all of your questions that will help you get the best education loan to study abroad.
Start by creating your FundRight profile.