Student education loan for study abroad -funding/bank loans
Most banks offer a student education loan,at very low interest rates,and the ability to pay back the loan after the course has been completed and after you receive your first pay check.Most banks would offer a substantial loan,but paying back the loan over a long period of time would be unwise,so a smarter thing to do is take a smaller educational loan,for a brief tenure.It goes without saying that the job you will be working will more than cover each monthly installment.some banks even off er a program where you can repay the loan on your convenience,and there is no strict EMI structure,you can pay according to your discretion,sometimes larger amounts,when you have a little more
A good practice would be to take 50% educational loan,and try to arrange the rest through family and personal savings,this way for every semester,when the money is to electronically transferred to the college for tuition or transferred to your personal accounts for your personal expenditure,the bank will “use” half of your money that you deposited and take the other half of their own.This in my opinion is quite a balanced way of going about your finances,and its easier to manage things.Taking a loan larger than 50% is not advisable,as paying it back would put undue pressure on the student,because other expenses like living and food,petty costs in addition to the educational loan emi is also present and it would certainly be a strain,for a long period of time,anywhere form 5 to 7 years.
Here are a few things to keep in mind about your education loan:
1.Payback your monthly emis on time to avoid penalties
2.Maintain a good credit rating
3.Set an amount that you wish to borrow for your education loan,and keep it as low as possible
4.Keep your debt level under limits so its easier to repay it when you start working