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.   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.
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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.   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!