Overseas Education loan application process – often resembles a labyrinth. It is like gathering redundant documents with endlessness and fulfilling eligibility criteria.
Don’t worry! Search for the right education loan for studying abroad gets easier when you understand the common challenges. Let’s look at the issues you may face, and how to handle them.
Common Hurdles In The Education Loan Application Process
The process of applying for an overseas education loan is typically multi-step, with potential challenges at each stage. A partially completed application form, a misinterpretation of the repayment terms, etc. are some examples of these challenges. Delays can cause needless stress and missed deadlines for international students.
You can take proactive measures as soon as the obstacles are recognized early on. This will ensure a smooth application process so the most desired education loan for abroad studies can be guaranteed without unnecessary complications.
1. Missing Documentation
Incomplete or incorrect documentation is one of the most common reasons for delays. Lenders require detailed information, including proof of income, admission letters, and co-applicant details, and missing even one document can halt the process.
How To Avoid It
Create a checklist of required documents and double-check each item before submitting your application.
2. Low Credit Score
Your credit score reflects your financial responsibility, and a low score can delay the approval or lead to rejection.
How To Avoid It
Check the credit scores of all involved parties before applying and take corrective actions, like clearing debts or paying bills on time, to improve them.
3. Misunderstanding Loan Terms
Another common mistake is lack of proper understanding of the loan terms. These may include interest rates, repayment periods, or even hidden charges. If you ignore this, you might be in for a shock later.
How To Avoid It
Discuss loan terms thoroughly with the lender and read the fine print before signing any agreements.
4. Delays In Loan Approval
Loan approvals can sometimes stretch beyond expected timelines, causing students to miss fee payment deadlines.
How To Avoid It
Apply well in advance, preferably when you receive your admission letter, and follow up with the lender regularly.
5. Choosing The Wrong Loan Type
Loans are not all made equal. Picking a loan that isn’t designed with international education in mind may result in increased costs or insufficient funding.
Ways to Prevent It
Select loans intended for study abroad because they typically have better terms and advantages.
Advice For Preventing Loan Process Delays
- Get Started Early: After you get your admission confirmation, begin the application process for an education loan.
- Pick the Proper Lender: Search for educational loan firms that are known for processing applications in a timely, effective manner. Get Your Papers in Order: Collect all necessary papers, from bank statements to IDs, to college down on paper.
- Stay in touch: Stay in touch with the lender to avoid any delays or complications with your application.
- Get Professional Help: Make it easier and more reliable by turning to the advice of financial experts like Unipay Forex.
How Unipay Is Making The Process Smoother
Applying for a loan doesn’t have to be stressful. Overcome obstacles such as lacking documents, low CIBIL scores, and confusion regarding the loan terms and your overseas education loan will be yours quick and easy.
We at Unipay Forex simplify your task by providing you the best education loan for abroad studies. We make it easy to study by making applications pass through easy applications,expert guidance faster approve-able.
Process of Applying For Education Loan: FAQs
- What is an overseas education loan?
An overseas education loan is a type of financial product that allows you to pay for your tuition fee, accommodation, and more, in order to study abroad.
- What is the best education loan for studying abroad?
The best education loan for abroad studies can be found by comparing lenders on interest rates, repayment terms, loan amount caps and additional benefits such as moratorium periods. You may want to hire our services to help you find personalized solutions.
- Can I get a loan without a co applicant?
Some lenders have a co applicant free loan product, but your mileage may vary. The stronger your credit profile is, the more likely you are to get approved.
- How long does it take to get an education loan?
In some cases processing time can be longer, usually 2-4 weeks. Provided you can submit all necessary documents and select a lender that operates swiftly, the process can go faster.
- Are there any tax benefits on education loan?
Yes, you are entitled to claim the benefit of the same under Section 80E of the Income Tax Act for the interest paid on the education loan.
