Education is not limited to the nation’s border. Many students move worldwide to study their favorite subjects in their favorite universities. While the cost of higher studies has surged drastically, education loans is a viable option for abroad studies. Education loans help pay their tuition fees and repay their loans conveniently once they receive a job.
Compared to other forms of loans, student loans are costly, although there are a few ways to reduce the loan cost and get the lowest student loan interest rates.
How to get an affordable education loan?
Education loans fulfil the financial requirements for abroad studies. Suppose you are planning to study abroad and looking for the lowest interest rates on education loans. In that case, the following factors can help you get a student loan at an affordable interest rate.
- Maintain a healthy credit score
While you can get student loans with a poor credit score, the rate offered may be high. To get affordable loans, you must have a healthy credit score. The banks and financial institutions verify your creditworthiness through CIBIL score. You can build a decent credit score to get loans at attractive interest rates by effectively managing your finances and timely repayments.
- Make automatic payments
Automatic payments can be initiated by anyone who acquires an education loan. Most lenders offer a discount on automatic loan repayments. In addition, you won’t have to worry about defaulting a payment or missing the due date. It will also help you build your credit score and get the lowest interest on education loans for abroad studies.
- Pay your EMIs on time
Several lenders reward you for timely payment. If you pay your monthly EMIs on time, you may get a rebate on your student loan interest rate or enjoy a longer repayment tenure. Being consistent will keep you in a stronger position to negotiate your loan interest rate later.
- Refinance your loan
Refinancing means transferring your student loan to get a lower interest rate and extended repayment tenure. However, you need a decent credit score and complete your graduation. A good financial situation will help you refinish your student loan and fetch you the lowest interest rates on education loans.
- Acquire a student loan for shorter tenure
Numerous lenders and banks offer lower education loan interest rates if the tenure is short. It lowers the risk of defaulting on payments since the applicant remains in debt for a shorter period. However, a shorter tenure means higher monthly EMIs, so you must also oversee your financial capabilities before opting for a tenure.
- Apply with a cosigner
An applicant may not always have a good credit score, but if they apply with a cosigner, the bank may offer reduced interest rates since it provides security to the lender. However, since both applicant and cosigner are equally involved in the education loan, defaulting on repayment will affect the co-signer’s credit score.
Following the above factors, you can get an education loan for studies abroad at an affordable interest rate from a leading bank like IDFC FIRST Bank, offering education loans to cover more than 3200 universities globally with interest rates starting as low as at 9.5% per annum. In addition, you also get unsecured loans of up to Rs. 75 lakhs for over 18,000 courses with a seamless application and approval process. IDFC FIRST Bank offers much more beyond education finance solutions and provides help and guidance to students on decision-making on destinations, institutes and courses with IDFC FIRST Bank UNI app https://firstuni.in/