With an increasing number of people opting for admissions in foreign universities to pursue higher education, the demand for an education loan for abroad is hitting an all-time high since the onset of the pandemic. According to the Economic Times, Education loan companies – which include banks and non-bank lenders – have disbursed Rs 11,000 crore loans in the 12 months through September 2020. Due to the fear of losing jobs, difficulty in sustaining with the current CTC, and lastly stagnant scenario in terms of increments and promotions, many working professionals are looking forward to upgrading their skill set which would eventually help them in their career growth.
In countries like India where the average household income is around 32,800 (source: Economic Times), people are not able to bear the cost of studying abroad which ranges from 40 lakh to over a crore for a masters degree and 20 to 50 lakhs for other degrees and courses. In this scenario, people are bound to take an education loan.
But the real question arises- Where should we take an educational loan from? What are the different options available? Which lender is the best for me? and a lot of other questions. Don’t worry, you’ll find all the answers here but first, let us delve into the basic overview of loan structure.
Loans are of two types- Secured and Unsecured. A secured loan is basically the type of loan in which the applicant can guarantee collateral. Unsecured loans on the other hand can provide the loan on the non-availability collateral on some terms and conditions- co-applicant should have a minimum income, college/university should be on their list, to name a few. In short, every lender has its own rules and regulations. But to begin with, check if you have collateral or not. If yes, then you can opt for a secured loan where the Rate of Interest (ROI) is way lower as compared to unsecured loans.
After finding your category, the next step requires you to find the best lender amongst the categories (secured or unsecured) in which you belong. This is the most important task and if this step is carried out successfully, 70% of your task is complete. But there are so many options available in the market- under the secured loan category we have PSUs like Bank of Baroda, SBI, and even private banks like AXIS. Under the unsecured category, we have private banks like AXIS and HDFC, NBFCs like Credila, Avanse, Auxilo, Incred, and even International Lenders like Mpower and Prodigy. It is natural for the person seeking a loan to get confused. But the task is to make the process easier so that you can focus on your packing!
You can proceed in two ways. The first way is to do thorough research and find the best lender for you. Then you can visit their branch/website or inquire through a phone call to get an overview of the terms and conditions and the documents you are required to submit. Then you wait for the lender’s approval. This process might seem easier but it is surely not. We often find ourselves waiting in long queues just for a simple passbook entry, imagine how much time it would take, just to get a call back from a bank, updating us about the loan. This is a harsh reality of PSUs and even some private banks. The second and the most sorted process is to get in with an Educational Loan Counsellor (ELC) or consultants, who can help you in choosing the best option and help you with the documents and other procedures. Some of the best-known options are GyanDhan, Mentored Counseling, Saphairs India, to name a few.
Before giving you the best solution, it is important to know that it is purely research-based and not from a promotional point of view. The best and the most renowned option (highest rated in google) you can opt for is GyanDhan. GyanDhan is known for its speedy and customer-friendly services where you can get in touch with their counselor and they’ll sort everything out without charging a penny! They even provide door-to-door services in major cities. It is strongly advised to visit their website, as it is a one-stop solution for all your study abroad needs. Now you are advised to worry about other things as it was promised that finding a loan couldn’t be easier. Bon voyage!