Borrowing an education loan abroad can be one of the toughest challenges especially if it is backed with extravagant interest rate. Therefore, before seeking a financial institution for study abroad education loan, your foremost goal should be looking for options that allow reduced EMI payments and a lower interest rate. This blog post discusses some of the important tips to consider for negotiating a better interest rate on your education loan abroad.
1. Build a Strong Profile
If you are applying for higher studies, it is important that you take a keen consideration of your academic records, the college you wish to go to or choose to study as they will highly influence the rate of interest. Try to keep your profile impressive so that banks are willing to provide low-interest rates on loans as they are convinced of your capabilities to return the money back. Major financial institutions for Study abroad look at Your GPA, Your GRE/GMAT score, Your Course of study, level of Study, University of Study and Country of Study.
2. Do Your Research
Sometimes it is better to do your homework before asking the bank to lower your interest rates on education loan abroad. Analyze if you can provide collateral or your co-signers’ income. Factors like what is the tenure of your repayment can also help you to negotiate the interest rates with the banks. Also, it is important to check the rates of various banks and NBFCs and find the one with lower interest so that you can use their names to negotiate with their competitors. If you have an impressive profile, there are chances that you win the negotiation.
3. Apply Early
Students with good GRE score are always recommended to apply to banks for study abroad education loan before securing an admission in a college. This gives them the advantage to compare different banks and more time to negotiate for an education loan abroad with a low-interest rate. Applications in the last minute for education loan abroad may not be left with the best choices.
4. Calculate the Expenses Carefully.
Before making any final decision, it is important to calculate your expenses as precisely as possible because the loan amount can make a huge difference in the processing fees. In ascertaining the expenses carefully you can as well choose Unsecured loan options as they provide less loan.
5. Balance Transfer.
Sometimes it is advisable to transfer your education loan from one bank to another because if you get a lower rate from the bank you would be transferring from after refinancing can help you save money. Furthermore, in some cases you might have to transfer your home loan where in you might get the advantage of a lower interest rate.
The Bottom Line!
Although these factors can help you save money on interest rates, the entire process of comparing banks, and getting a lower interest rate can get confusing for students applying for education loan abroad. To help candidates get through this process we at Edu Loans provide a single-window platform online where students can compare different banks and NBFCs and get the best loan as per their convenience. We also have a team of best education counselors who help students with the entire loan process and guide them throughout the task so that they get hassle-free finance at the cheapest rates. To connect with us please register on our website or msg us using the instant chat feature and we will be happy to help you with your dreams.