Students who are willing to study in the US can reach us for Abroad Education Loan. Our consultants will guide you. Students can go for two types of overseas education loans i.e., Secured Education Loan and Unsecured Education Loan.
Common Problems Students Encounter When Taking an Education Loan
Though education loans are an excellent way to finance your education, the process isn’t always smooth sailing. Most students encounter some problems that slow down or even stall their study abroad dreams. Here are some common challenges:
1. Lack of Collateral
For secured loans, banks usually require fixed deposits or property as collateral. Students or their families usually don’t possess such assets to offer, and hence their choices are narrowed down to unsecured loans—usually with higher interest and tighter eligibility.
2. Low or Unstable Co-applicant Income
Banks normally insist on a co-applicant (such as a parent or guardian) having a stable source of income. If the salary of the co-applicant is low or sporadic, obtaining the loan gets tough, particularly for unsecured loans.
3. Poor Academic Record or Third-Tier College
If the student possesses ordinary marks or has gained admission in a lesser-known college, banks might perceive him or her as high-risk and reject the loan, anticipating negligible chances of future repayment.
4. High Interest Charges on Unsecured Loans
The private banks and NBFCs that provide collateral-free loans also tend to provide higher interest charges—sometimes even 11% to 14%—hence the cost of repayment during graduation.
5. Complicated Documentation
It is cumbersome, to say the least—proof of admission, income tax statement, property deed (for loans against property), guarantor’s details, and so on. Missing a single document can derail the process.
6. Protracted Loan Processing
Public sector banks, though providing better interest rates, are slow with sanction. For students who have pending visa interviews or college admission deadlines, the delay creates severe anxiety.
7. Lack of Awareness or Guidance
Students and parents lack awareness about the options available, terms of loan, or which bank to visit. Without guidance, they end up being rejected or opt for a loan that is not suitable for them.
We are specialized in providing student loan for foreign education. we are very well aware about these problems and its solutions as well.
Just connect with us, our team is ready
Contact Us – +91-8445249576