An abroad study loan provides financing to students who wish to pursue higher education in foreign countries. After the student is done with their studies and has gained employment, they can start repaying the loan. A study loan is a very effective way of achieving the optimum funding for students who wish to pursue education abroad but are held back due to a lack of funds. If you plan to get a study abroad loan, then following certain do’s and don’ts will be very helpful. Let’s take a look at them in this article.

Do’s while applying for a study loan

1. Do opt for a lender that covers comprehensive expenses

When you decide to move abroad for studies, there is a multitude of expenses that you will have to deal with. It is, therefore, a wiser move to opt for a lender that covers these expenses such as rent, insurance premium, travelling costs, and so on.

2. Do check if collateral-free options are available

With some lenders, you may not have to provide collateral. The collateral is an asset such as a life insurance policy, land, car, and so on that, you provide to the lender as security against the loan. If you are not willing to provide the security, then you should definitely check if collateral-free options are available and go ahead with them.

3. Do check the loan sanctioning time

It is always preferable to opt for an abroad study loan lender that has a quick sanctioning time as this lessens the chances of any delay occurring in the admission process.

4. Do opt for a lender that offers 100% financing

The loan lender you choose should offer you 100% financing because it will remove the need for you to arrange for any margin money.

Don’ts to follow when applying for an abroad study loan

1. Don’t forget to double-check the application form

The loan application form is usually quite simple and easy to fill up. However, in a hurry to submit the form, one may end up committing some mistake or the other. Therefore, you should always double-check the form before submitting it.

2. Don’t opt for an abroad study loan with rigid repayment options

A loan that offers you rigid repayment options is better avoided as it makes repaying the loan a bit difficult. With flexible repayment methods, you have more ways which in turn ease the process of repaying in general.

3. Don’t forget to read the terms and conditions

The terms and conditions of each lender are usually different. The terms may also differ depending on the borrower’s requirements. That is why before you submit your loan application form or accept the loan offer, do read the terms and conditions.

Also, do remember that different foreign destinations may have different admission timelines. For example, if you search for ‘study loans Australia’, the admission timeline you see would vary from that of a study loan for the UK or Ireland. So, do proceed with the loan after having understood the same. We hope this article has been helpful for you!