An increasing number of Indian students have been opting abroad universities to pursue their higher education. As per the reports from the Govt. of India in 2018, more than 7,50,000 Indians study in foreign universities. However, pursuing education from foreign universities does gives a jolt to the pockets of the parents. This is where Education Loan Schemes for Abroad come into the picture.
More and more families are opting for education loan to fund higher education abroad instead of investing their own savings. Latest reports display how students going abroad have been pushing the education loan disbursal in India. The State Level Bankers’ Committee (SLBC), Gujarat has reported a whopping increase of 69% loan in the disbursal from Q1 2018-19 to Q1 2019-20.
Is an Education Loan for Abroad Education Worth It?
A real challenge that families face before opting for an education loan is whether they are making the right decision or not. Abroad education comes with a lot of miscellaneous costs apart from the tuition fee and the hostel charges. Fortunately, Indian banks, both private and public, have devised their education loan schemes in such a way to accommodate all of these miscellaneous charges.
Some of the popular public sector banks (PSBs) offering such schemes are:
Even many private banks offer such schemes to aspiring Indian students. A few examples are:
These banks and NBFCs offer lucrative schemes to students having lower interest rates, large loan amounts, easy disbursal processes and also covering the travel expenses. Such education loan schemes turn out to be the best option when it comes to funding an expensive course.
Many times, parents dread going for an education loan and end up spending their savings on the child’s education, at times, digging up their retirement funds. Education loans prove to be an easy solution to such troubles.
What Challenges Await?
Pursuing an education loan is an easy and advisable option but there are definitely some challenges.
1. The biggest reason people refrain from opting for it is the fear of repayments. It is to be noted that banks give satisfactory time (more than the total course duration) to students to start their repayments. This provides a sufficient window for students to get a job to be able to pay the EMIs.
Moreover, abroad universities offer enough internships and job opportunities for students to earn money.
2. Another threat in the minds of people is the rising status of NPAs. However, NPA appears to be the smallest problem when you properly consider your decisions. There are many effective ways to prevent your education loan from becoming an NPA. These include simple methods like carefully planning the college and the course and multiple other solutions.
Also check, Tips to Plan Education Loan in a Better Way
Education Loan Disbursal is continuing to increase in India. The total disbursal has even more than doubled in some of the states. Despite the international challenges, students continue to show their faith in student loans, in order to get the burden off their parents’ shoulders.