6 terms associated with the education loan for abroad studies

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6 terms associated with the education loan for
abroad studies Education loans
help students with money to fund their higher
education, and thus, helps them in becoming
excellent professionals and achieve success in
their trades. Even though education loans have
become accessible, many students still dont have
knowledge about the terms associated with
education loans. They often search education
loan abroad or other associated phrases to know
about terms related to such loans. In this
article, we will shed light on 6 such
terms.   Eligibility criteria Lenders will give
you an education loan for abroad studies if you
clear all their eligibility criteria. These
conditions that govern whether or not lenders
give an education loan to a student are called
eligibility criteria. Some of the most common
points in the eligibility criteria for a student
to get an education loan abroad are being an
Indian citizen, attaining minimum 18 years of
age, and possessing a reasonably strong academic
record.
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Co-borrower Lenders do not give education loans
directly to students. They draft the education
loan in the name of the students co-borrower. A
co-borrower is an adult who repays the education
loan if the student defaults on the repayment. A
students co-borrower can be their father or
mother or legal guardian or spouse. A co-borrower
is also called a co-signer.   Processing
charges Every time a lender processes an
education loan for abroad studies, they levy
various charges on it. Those charges are
pre-processing charges, processing charges,
service fees, statement of accounts, and so on.
Choose a lender that levies a lesser number of
these charges on your education loan. And also
keep in mind that you get a loan that has a
lesser amount of money charged under the name of
these charges.   Moratorium period Lenders do
not expect students to repay their education
loans as soon as they earn their degrees. They
offer a grace period to help students prepare
themselves for the responsibility of repaying
their education loans. It is called the
moratorium period. Usually, a moratorium period
lasts up to 1 year from the time the student
completes their education, or up to 6 months from
the time the student starts working at their
first job, whichever happens earlier.
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Repayment tenure Most students cannot pay back
their loans in one single installment. This is
why lenders devise a repayment tenure for the
student to repay the education loan gradually.
The repayment tenure of education loans taken in
India can last as long as 15 years but not
beyond that.   Equated Monthly Instalments or
EMIs The small, fixed amount of money that
students pay every month to clear off their
education loans gradually is called Equated
Monthly Instalments or EMIs. Some lenders offer a
service called step-up EMIs. Here, the student
pays a lesser amount of money as EMI initially,
and as they start earning handsomely, the EMI
value is increased to help repay the education
loan swiftly.   So, these are the 6 terms
associated with education loans for abroad
studies. We hope that now you have finer
knowledge about education loans. All the best!