3 reasons why NBFCs are the right choice to get a student loan for study abroad.

The education loan system has helped millions of students to study at their chosen universities and colleges, and contribute to the society as practicing professionals. Even though the education loan system has developed fairly well to help a student to pursue tertiary education in India, things are different with a student loan for study abroad purposes.

The conventional education loan lenders in India follow a conventional way of financing the education of students outside of India, which makes it difficult to get loans from them for studies abroad. To solve this problem, many NBFCs have adapted to the changing needs of the society and thus they make the students’ dreams to study at foreign universities come true.

In this article, we will tell you 3 reasons why NBFCs are a better choice to get a student loan for studying abroad:

1) Collateral-Free Loans

Higher education in foreign places costs a lot of money. Many students who have the calibre to excel at their trades have no money to study at those prestigious foreign universities. Although government banks offer a student loan for study abroad purposes, they do so at one condition—the student needs to pledge assets as security if the education loan to be provided is more than Rs.7.5 lakhs.

NBFCs provide a better deal to students, who need an education loan and also do not have financial assets to pledge as security for that loan. Many NBFCs have no upper limit on the amount of money a student can borrow for his education in a foreign land. This makes NBFCs the right choice for financing their studies abroad.

2) Covers all Types of Expenses

When a student decides to study in a foreign university, he or she has to manage money for expenses like travel costs, the expenses of lodging and boarding in a foreign city, the library fee, the exam fee, the stationery and laptop expenses, and so on along with his or her course tuition fees. Government banks offer to cover these expenses but only up to 90-95% of the limit.

NBFCs offer to cover 100% of the student’s expenses throughout the duration of the course in a foreign city. This makes NBFCs the right choice again.

3) Provides Customer-Friendly Services

For a student loan for study abroad purposes to get approved, it has to pass many tests. Many foreign universities ask students to show proof of funds, which means proof of whether he or she has money to pay the tuition fees of the whole course. Government banks do not offer such services as proof of funds.

NBFCs, on the other hand, provide the service of proof of funds, and apart from this they also provide customer-friendly services like pre-visa loans, pre-admission loans and so on. This is one more reason why NBFCs the right choice for getting a student loan for a student’s studies abroad. So, these are 3 reasons why NBFCs are the right choice to get a student loan for study abroad purposes. We hope that after reading this article, you have a better understanding of selecting the right lender if you want to study abroad. We wish you all the best!