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India’s 1st Loan Bidding Platform Makes Education Loans For Studying Abroad Easy

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India’s 1st Loan Bidding Platform Makes Education Loans For Studying Abroad Easy

You call the bank, yet again, in your journey to find the perfect education loan for studying abroad.

Yet another voice from the bank says to you:

● “We will reexamine your profile and get back to you.”
● “We’re yet to hear from our loan officer.”
● “We need the photocopies of your 10th class mark sheets again.”

Can this stop? Is this how the Indian student deserves to be treated, while they’re juggling swords in their quest for foreign study education loan?

In this guide, we’ll tell you how you can kick out the stress and anxiety as you find your education loan for studying abroad.

Banks Compete For Your Study Abroad Loan and You Relax

Taking an education loan for studying abroad is the most important thing for many Indian students who wish to study abroad. The process starts after you have selected the right university. Listing out banks, getting documents ready, and creating a financial plan are some of the many things that you and your family will have to go through. All this hard work kills the excitement of going abroad and starting a new journey. Not anymore. FundRight, India’s first loan bidding platform, solves all of your problems related to securing a perfect education loan for study abroad. The best part is you don’t have to leave your house. Let’s start by understanding the problems we can solve for you, as we have for countless students.

Why Getting An Education Loan For Study Abroad Is Difficult?

Below are the five most prevalent challenges while looking for an education loan to study abroad.

1. Running Around Multiple Banks

After you have made the list of the banks you will be applying for loans to, you will be reaching out to them. The most common issue here is there is not a lot of information on the websites of those banks. Personally visiting banks and explaining your situation is tiring, to say the least. You will have to show up there with some documents. Then, you have to wait till the person of interest is available to talk to. Many hours will go by the time you have explained your international student loan requirements. What’s worse is, you will not get any kind of real answer. Bank managers and their assistants are great at stringing people along by giving vague replies. Education loan for study abroad
Even though you have explained your profile to them. And that is just one bank.  

2. Weeks Of Delay Before You Get An Answer

Another common challenge that loan applicants face is the number of times banks and lenders take to give you a definitive answer. More often than not, you might have to follow up in person. Go to the bank physically, wait until the person in charge is available and remind them that you already spoke with them. Then you have to run your profile by them, in brief, one more time. You will be lucky to get a solid answer from them. Generally, bank employees bide more time by adding more forms and steps that you need to complete to get an answer. Being asked to go to another counter and fill out another form is quite common. The details like loan amount, rate of interest, etc., are provided to you after a few weeks of running to and from the bank or the moneylender. Generally, it takes 2-3 months (sometimes even more) to get the funds in your bank account.  

3. Lots Of Paperwork

If you don’t already, you will need a folder to arrange all your documents. You will need your property papers (in case of collateral loans), your current bank statements, clearance statements, etc., to get your loan approved. Obtaining each of those documents is compulsory for you to secure an international education loan for study abroad. But the challenge doesn’t end there. You will also have to submit any other document that the banks request. For instance, some banks require your academic profile before they approve your loan. Securing those documents in relevant formats will take you months at the least. In many cases, you have to make certain corrections if they are not right according to the bank. For timed documents, you have to redo them again and again as the weeks go by.  

4. High-Interest Rates

A student loan to study abroad doesn’t come cheap and the interest rates signify that. It is quite common for USA-bound Indian students to get loans at around an 8% rate of interest. The main reason for such high rates is that traditional banks will evaluate your profile based on outdated metrics. Metrics such as earning potential during the course and after graduation. All of the industries have changed drastically and so has the earning potential of members within. Most Indian students who want to study abroad don’t get the perfect education loan because they are stuck with other problems. Problems such as collecting documents for the banks, or researching different universities. The unfortunate thing is many students accept these unreasonable rates of interest as they are unaware of better options.  

5. Lack Of Unbiased Expert Guidance

Online forums, blogs, social media, etc., are flooded with questions from students who are looking for the best loan to study abroad. There is one thing common with all of them. None of their questions are answered by unbiased experts. Their answers mostly come from agents of oversea consultancies, and students who themselves don’t have a lot of ideas. The answers they get are biased and incomplete, often pushing them to make the wrong financial choice. Agents will try to sell you things that you don’t want by lying to you. Their whole aim is to make money off of vulnerable individuals. Students, although they want to help you, they only know the scenario of the university they joined. A complete, expert opinion is rare.

How India’s 1st Loan Bidding Platform Gets You The Best Education Loan For Study Abroad?

FundRight helps students in five ways.

1. Get Funding Options In Two Days

That’s right. FundRight will send funding options to your inbox within a day. All you need to do is answer a few simple questions so that our bidders get to learn a bit more about you. You have to do it just once and it takes a few minutes to complete. After assessing your profile, we will send you the best options that we think will be perfect for you. We consider only relevant metrics. We only care how meritorious you are and what your future career goals are. Because those are the only things that matter when giving out educational loans to study abroad.

2. Choose The Moneylender That Is Best For You

You get to choose. We will have 30+ lenders as of April 2022 and their number is constantly increasing. FundRight will have them competing for your approval. You can review the terms and conditions of each of them and make the choice that is the best for you. Unlike traditional banks, we believe in empowering the students. You can evaluate your financial options on the following basis.   1. Moratorium period: The time duration in which you are not obligated to pay. 2. Rate of interest: It compounds monthly. 3. Repayment period: Longer repayment period means you will have to pay less in one instance.   The best part is you don’t even have to leave your home. Just fill up your FundRight profile and we will get you sorted.  

3. Submit Your Documents Only Once

With banks, you will have to submit your documents every single time you apply to a new bank for a loan. You have to upload your documents once with FundRight. Unlike banks, you won’t have to go to different lenders and Non-Banking Financial Companies (NBFC). Here, lenders come to you. We will have your profile examined by our lenders so that they can give you their best offer. We will also keep your data secure and encrypted. The lenders in our network will only see the necessary details. The information that they need to decide if they can grant you an educational loan to study abroad. Nothing more.

4. Low Interest, No Collateral Loans

The reality is it is easy to get the following kinds of loans. 1. Low interest, but you have to put collateral. 2. No collateral loans, but with a higher rate of interest. Putting your land or house on the line for a degree is something that puts many Indian students in a difficult place. Even though the potential career opportunities for that course are massively high, it is too huge of a risk. On the other hand, high-interest loans are unfair for many reasons than one. It means you will have to pay more and your family will have to make larger sacrifices. Fortunately, FundRight comes in with a third, and the best option. You can easily save from 2-5% in interest on your non-collateral student loan for studying abroad as compared to other lenders.

5. Advice And Guidance From Experts

While you go through this process of securing funds to study abroad, you must have lots of questions. Earlier in this article, we have already explained the issues that you will encounter while relying on the wisdom of public forums. Here, we do things differently. We will put you in touch with experts who have helped countless students and alumni who have been in your shoes. They will answer any of your questions related to securing a student loan for studying abroad. They can also give you a deeper insight into how quickly you can repay your loan based on your field of choice. The answers you will get from them will be unbiased and will be centered around your best interests.

So…

FundRight gives you low interest, non-collateral loan options within 48 hours. Not only that, you don’t have to run from one bank to other, playing their game and leaving everything to fate. Plus, our experts will help you by answering all of your questions that will help you get the best education loan to study abroad. Start by creating your FundRight profile.
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Know Education Loan Tax Benefits: All About Section 80E of Income Tax Act

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Know Education Loan Tax Benefits: All About Section 80E of Income Tax Act

Studying abroad? How exciting! More global exposure, more cultures to know about, more people to learn from, and… And? And bigger tuition fees to pay, bigger education loans to take, and probably bigger interest to pay off.
Well, that doesn’t sound nearly as exciting as I thought. Yes, but the latter can be taken care of. Let us introduce you to this incredible provision in the Income Tax Act helping reduce interest on your education loan called Section 80E. 

With your higher education, you are starting a new phase of your life. Burdening it with the repayment of your education loan with a high RoI is the last thing you would want to do. So, take advantage of education loan tax benefits and learn about Section 80E of Income Tax Act. Read on and unlock the “not-so-secret” secret to massive savings on income tax against an education loan.

Table of Contents

  • What is Section 80E of the Income Tax Act?
  • Education Loan Tax Benefits Under Section 80E
  • Deductions/ Savings Under Section 80E of Income Tax Act
  • Who Can Claim Deduction Under Section 80E of Income Tax Act?
  • Important Documents to Claim Deduction Under Section 80E of Income Tax Act
  • How to Claim Savings?
  • When Will Section 80E Not Be Beneficial to You?

What is Section 80E of the Income Tax Act?

When you don’t want a large sum of your hard-earned money to go towards paying income tax, you try to find avenues that can help reduce this burden.
Now, even though completely avoiding paying tax may not be possible, you can still cause deductions on your interest repayment against education loans.

And for that, you must get a clear understanding of what section 80E of Income Tax Act is and how you can take advantage of it.

But it is so difficult to understand this jibber-jabber. Well then let us explain it in simple language. Basically, income tax deduction against education loans. That is what Section 80E of Income Tax Act provides.
But before we delve further into the nitty-gritty of this section, here are a few things you must know. With this information, it will become easier for you to understand the benefits of Section 80E.

Section 80E Explained in a PhraseProvides income tax deduction against an
education loan
How to Take Advantage of Section
80E?		Claim savings under this section while filing your taxes
How Much Can I Save Through
Section 80E?		Depends on the size of your annual salary, income tax
bracket, and education loan
Who Can Claim It?Either the applicant (you) or the co-applicant
(parent/ guardian)
For How Long Can I Claim it?8 years
What Should be the Criteria for
the Purpose of an Education
Loan?		You can only claim it against an education loan taken only for the purpose of higher education.
Can I Take the Education Loan
From Any Bank?		What Should be the Criteria for the Purpose of an
Education Loan?
What is the Upper Limit on Savings Through Section 80E?No cap
Is Section 80E Always a Good
Option? 		Not always. Read below for further details.
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Education Loan Tax Benefits Under Section 80E

Now that you are aware of the basics of this provision, let’s understand how it is advantageous for you. And in which cases would it be a good idea to opt for this claim.
  • First and foremost - you get massive deductions on your education loan interest rate under this section.
  • The higher the percentage of income tax you are paying, the higher deductions you will be getting. This means if you or your co-applicant doesn’t have a high taxable income, claiming section 80E might not be very beneficial.
  • The tenure for the deduction claim is 8 years. So, to take maximum advantage of this provision, start repaying your education loan once you start earning a good salary rather than repaying it while you’re still studying. It will increase the deductible amount and help you not lose the golden years of this tenure.
  • Make sure to take a loan from an Indian financial or charitable institution recognized by RBI. You will not get these savings if you get a loan from a foreign lender.

Deductions/ Savings Under Section 80E of Income Tax Act

Education Loan

You took an education loan of 30 L.
According to the rate of interest (RoI), you’re paying an average annual interest of 3.1 L on this loan, which makes it a total of 25 L over the course of 8 years.
Overwhelming? Let’s use Section 80E.
Now,
● if you claim this entire annual interest of 3.1 L and
● you or your co-applicant falls under the 30% income tax bracket,
you may end up saving 1 LPA on your taxes.
So, over the course of 8 years, you will end up saving 8 LPA. 8 lakhs per annum!!!
Now if that isn’t a massive deduction then what is!

In Short:

All the interest during the loan repayment can be claimed as a deduction in your income tax.

The deduction can’t be claimed on the principal amount and only on the interest.

Who Can Claim Deduction Under Section 80E of Income Tax Act?

To be eligible to claim the deductions, you must qualify for the following criteria:

1. Deduction Amount

Since there is no cap on the deduction, any amount of interest repayment on an education loan is eligible. Depending upon various other factors, the entire amount of interest can be deducted from the taxable income.

2. Purpose of Education Loan

The purpose of an education loan should only be higher education from a recognized institution. Other than that, there are no conditions on it being India or abroad, UG or PG, and public or private institution.
Since you can take this loan for yourself, your spouse, children, or legal guardian, you, as well as your parents can claim the deduction.

3. Source of Loan

You must have taken the loan only from an RBI-approved Indian financial or charitable institution.

4. Interest Repayment Status

You can only claim the deduction once the interest on the loan has been paid.

NOTE:The information mentioned is only for basic understanding. If you wish to get amount-specific information, contact our expert Board of Advisors.

Important Documents to Claim Deduction Under Section 80E of Income Tax Act

You need proof in the form of documentation to take advantage of education loan tax benefits. Before you begin your claiming process, keep the following documents ready.
Loan sanction letter from an RBI-recognized financial institution
A bank/ financial institution issued repayment statement on the education loan
For salaried individuals – bank statements and Form-16

Helpful Tip:
File your claims online through the income tax portal. Using your PAN and password, log into the website to file an ITR.

How to Claim Savings?

Section 80E of Income Tax Act

Thanks to the accessibility of information and continuously evolving technology, the claiming process is fairly simple.

As mentioned above, you can file your ITR through the official website of Income Tax. but how can you claim Section 80E?


Here’s how:
● While filing your ITR, under Section 80E, mention the amount paid towards the interest of your or your child’s education loan.
● Then, deduct that amount from the taxable income.
● If you are a salaried employee, you can simply provide your employer with proof of interest payment before TDS.

When Will Section 80E Not Be Beneficial to You?

Although in the world of education loan tax benefits, Section 80E of Income Tax Act is common knowledge, it may not always be advantageous.
Here are some situations when claiming 80E would not be beneficial to you.

CircumstancesReasons
If, after studying, you will be working
abroad		Because you will not be filing taxes in India
If you are not in India during your repayment and your co-applicant is an NRI Because you will not be filing taxes in India
If your co-applicant doesn’t earn
enough		Lower salary → Lower tax filed → Less deduction on interest → Not very beneficial
Your co-applicant is about to be retired to is retiredBecause the taxable income reduces drastically after retirement due to the senior citizen quota.

Still confused?

We know what you are wondering.

If only there was the easiest way to get the best student loans with the maximum savings.

Well, there is.

The right way to fund your higher education. Save yourself from the confusing data that the internet bombards you with and avail the best education loan with FundRight.

Because you shouldn’t have to settle for anything less than what you deserve.

Contact us to know more.

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How do the Banks Decide on Education Loan Interest Rates?

How do the Banks Decide on Education Loan Interest Rates?

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How do the Banks Decide on Education Loan Interest Rates?

The rate of interest is what tips the scales for most students. 

This isn’t randomly chosen. Banks analyze a number of factors ranging from the economic conditions to your credit score to come up with the education loan interest rates. 

Education loans are one of the riskiest loans for banks. Students tend to default the most on repayment. This is why there is an intensive pre-approval check. 

But if you need your loan approved urgently, then FundRight’s services can help you with that. This one-stop solution gives you all the tools you need to decide on the right financing option.

Making an informed choice is crucial. That’s why you should read on.

What factors influence education loan interest rates?

1. Student’s Profile

The financing organization will look at your educational history. 

They will look at your scores in the 10th and 12th board examinations. 

And if you’re applying to a master’s program, they will need your UG scorecard as well. 

If you were working, then your salary during the employment period will also be considered.

2. Guarantor’s Profile

In case you cannot repay the loan, the bank needs a backup. So typically, an earning person can be your guarantor. Even if you were employed, a guarantor is needed. Their bank statements, salary slip, and credit score are all scrutinized.

3. MCLR

Full form: Marginal Cost of Funds Based Lending Rate

This is the rate of interest below which banks cannot lend loans. This was introduced to negate any chance of unfair interest rates being granted to the bank’s prime customers. 

The MCLR system was introduced in 2016. The rate changes monthly. So the rate of interest could still change per borrower.

The RBI can make exceptions to the MCLR rules. So you may be able to secure education loans at lower interest rates. 

current MCLR rates for some lenders
Here are the current MCLR rates for some lenders (April 2022).

4. Course and Institution

This is how the bank’s loan disbursement officer thinks. 

If you’re attending an A-Rank institution, then your employment opportunity is likely to be better. This means you are more likely to pay back the loan without defaults. So the interest rate will likely decrease. 

Likewise, the bank will also take the course into consideration. STEM graduates tend to be higher paid than Arts majors. So the banks will favor giving education loans for studies abroad to STEM majors. 

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5. Collateral

You need to arrange collateral for loans above a certain amount. If you’re unable to repay the loan, the banks will seize the collateral to repay themselves. In fact, Indian banks have always faced the problem of substantial NPAs in the education loans segment. Here’s some data from the pre-pandemic years.

NPAs in the education loans segment

This gives them a guarantee that they will be paid back either way. So they’re likely to decrease the student loan interest rate if the collateral is submitted. 

For non-collateral loans, NBFCs, private banks, and international lenders are your best options. Private student loan interest rates are typically higher because there is no collateral given to the organization. However, this isn’t always true. 

Find out more on collateral versus non-collateral loans. 

On FundRight, you can get a loan without collateral, that too at the lowest interest rate in the market. This means you save lakhs. And this isn’t all. FundRight is just one part of our suite of digital enablers for Indian students looking to study abroad. 

NBFCs have their own set of rules when it comes to deciding the education loan interest rates. They look at the country you’re traveling to on top of the course and personal information.

Personalized university selection | Best education loans

What are the types of student loan interest rates?

When you visit a bank’s website, you’ll see an advertised rate of interest. Most banks don’t usually give education loans at this interest rate. They’ll assess you on the criteria above and give you a new rate of interest. 

And here’s another curveball for you – there are various types of interest rates. Let’s discuss.

1. What is Fixed Interest Rate?

As the name suggests, this type of interest rate will remain the same throughout your repayment period. Changes in the market or economic conditions won’t affect the interest rate. This is a safe option. At the same time, there is no possibility for the interest rate to decrease, as there is with floating interest.

2. What is Floating Interest Rate?

This is an ever-changing type of student loan interest rate. The rate depends on the changes in the market conditions. 

Sometimes, the RBI encourages lending by giving banks a lot of money. This will result in a decrease in the interest rates. 

Financial strains in the country will lead to banks increasing their interest rates. The basis for the fluctuation is the base rate. 

Going for financial support with a floating interest rate is a gamble that sometimes pays off.

When should you opt for a floating interest rate?

For education loans abroad, it makes sense to choose floating interest rates only if the repayment term is long. Most banks offer a repayment period between 10-15 years.  

Why? Because the rates don’t drop or increase drastically. The rates are usually revised yearly or half-yearly. This is called the reset period and it’s decided by the bank. 

So if it increases in year 1, there’s a chance it could decrease in year 3. This all depends on the market. But if you’re planning to repay the loan within year 3, then you may not reap the benefits of lower rates of interest. 

However, for long-term repayment plans,  you can be fairly certain that the total interest rate would decrease. 

How to make a decision?

When applying for an education loan for studies abroad, you’ll need to consider a host of factors. To make the research easy for you, we’ve collated the information you’ll need. 

Here are the rates of interest and other terms offered by some NBFCs and banks.

rates of interest and other terms offered by some NBFCs and banks
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Applying for an Education Loan for Study Abroad? Do it Right

Applying for an Education Loan for Study Abroad? Do it Right

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Applying for an Education Loan for Study Abroad? Do it Right

For most Indians “studying abroad” and “education loans” come together.

An education loan for study abroad is one of the most important decisions.

But with so many banks and lenders, the selection isn’t easy. Sometimes, you might even have to compromise on your dream university.

Don’t worry, we have got your back.

FundRight can help you get a student loan for studying abroad with the lowest rate of interest with zero collateral.

How, you ask?

This is how. 

Best education loan with FundRight

Now, let’s get you the perfect education loan.

How To Select The Perfect Education Loan For Study Abroad?

Before you go out and start applying for student loans, there are a few things that you must be aware of.

Here are the five most important things that you need to understand to select the best loan for you.

1. The Total Loan Amount You Need

You need money for your tuition, accommodation, travel, etc. The amount of money you get (or can get) plays a major role in your higher education. Your first step in the journey to get an education loan for studying abroad starts with selecting a budget.

It decides the country of study, the college you can go to, the course you can pick, the house you can live in, and more. It also decides another crucial thing.

It decides the level of financial sacrifices your parents have to make.

Here is how you can easily estimate the amount of loan you require.

  • Pick a college and a course, and find out the tuition fee.
  • Look up the cost of living for that town.
  • Add 20% of the cost of living as “miscellaneous expenses”.

Add it all up and you can get the approximate amount you need.

To keep your loan amount the lowest you need to choose the right university for you. Based on your merit and career choice, the right university will save you a ton of money.

We can help you select the right university. A university that will be the best investment for your career and gives you the best opportunities.

After you finalize the amount of your loan, you need to think of the repayment period.

2. Loan Repayment Period

You need to know three things.

  • Shorter repayment period = higher rate of interest.
  • Longer repayment period = more money as interest.
  • Moratorium period: The period of time in which you are not obligated to make payments (but the interest accrues).

Depending on your lender, your moratorium period could vary. Usually, it is one year more than your course duration.

Our recommendation is you take a shorter repayment period so that you will pay less in the course of repayment. However, you also need to consider your situation and make a decision on that basis.

The most crucial thing before you select a loan (or a lender) is the rate of interest.

3. Rate Of Interest Of The Loan

Your life depends on it.

Suppose you take a loan of ₹22 lakhs with a 300 basis point difference, you will be paying nearly 30% of the principal by the end of a decade.

That is a lot.

FundRight can save you between 2% to 5% on your student loan’s interest rate.

No hidden fees.

We will have 14+ banks, NBFCs, and international lenders bidding competitively for you.

But which lender will be the best for you?

You decide, because this is how Indian students find their best education loan.

4. Preferred lenders

You can get your education loan for studying abroad from banks and Non-Banking Financial Companies (NBFCs).

While choosing a lender, check if your university has any affiliations with your bank or NBFCs. It will get your loan approved fast and your interest rates will decrease significantly.

Another thing that you must check is margin money. That is the amount of money you can pay from your own pocket for your education. It varies between 5% to 15% depending on factors like choice of university and preferences of the lender.

Generally, banks and NBFCs choose who they give an education loan.

At FundRight, you choose your lender.

Rather than you competing for approval, FundRight gives you the freedom to choose a lender based on your requirements.

Before you take a loan, you must think about how you can pay it back.

5. Future Earning Estimations

You want to repay your education loan, right?

This is the most important part. Do a deep dive and analyze the career opportunities you might get through your field of study. The majority of banks and NBFCs evaluate this critically even if it is a collateral loan.

There is one disadvantage when you are applying for student loans for studying abroad from traditional banks. They are more likely to evaluate your field of study through an outdated lens and put more importance than necessary on that.

Most banks only recognize the top 1000 universities globally and approve loans based on that bias.

This is unfortunate, especially for truly meritorious students.

FundRight lets you find your best education loan based on your merit and nothing else. Because lenders bid on your loan, you benefit from the competition. Whims and opinions won’t sway the opinion of the risk assessment officer of any bank, when you look for your education loan via FundRight. 

We have discarded the blurred and outdated mindset while evaluating your profile. Our lenders only see the information necessary and nothing more.

Now, let’s jump into the application process.

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How To Apply For An Education Loan For Studying Abroad?

Before you go ahead and start sending out your applications to banks and NBFCs, you need to know the two kinds of loans;

Collateral and non-collateral loans.

1. What Is The Difference Between Collateral And Non-Collateral Loans?

A collateral loan is taken in exchange for a pledge of an asset owned by the borrower.

The non-collateral loan doesn’t require any type of collateral. Due to this nature, non-collateral loans generally have a higher rate of interest. On FundRight, you can find a loan without collateral, and still pay the lowest rate of interest in the market. Create a profile, let lenders bid, compare bids, ask for advice from our advisors, and select your best loan – that’s how things work on FundRight. 

Generally, students taking an education loan for studying abroad opt for a collateral loan as it is easier to obtain. The most popular benefits of it are that you can borrow a huge sum and with a low-interest rate.

But, there is a huge risk.

You will lose the collateral if you fail to pay it back as agreed. That means you can lose your property, land, house, etc. What makes it more difficult is you are completely vulnerable to any unforeseen situations like accidents, sickness, etc.

FundRight can help you with securing a low-interest loan without any collateral.

We are concerned with one thing.

Empowering students.

If your grades and scores are consistently high we will be worrying about your financial needs. FundRight helps students in need of an education loan to study abroad get low-interest student loans very quickly.

Let’s take a look at the documents that you need to submit before your application is examined.

2. Documents Necessary For Applying For A Student Loan To Study Abroad: Checklist

Keep this checklist handy while you apply for a student loan to study abroad.

Documents Necessary For Applying For A Student Loan To Study Abroad: Checklist

If you are applying for a loan to a bank, you will also have to

  1. Fill out the application forms by banks.
  2. Submit any additional documents that the banks need.
  3. Repeat this process with every bank.

With FundRight you will have to submit the documents once. You upload them, and you’re done. Plus, your information remains anonymized and secure. No more banking spam, because you have better things to do. 

Think of all the time and hassle you just got saved.

Keep in mind that all the details you will be submitting should be secured and private.

3. Protect your personal data

You will be submitting a lot of personal information. Data like your collateral details, academic details, bank statements, etc. With data breaches becoming more and more common, you should be careful about how your data is stored.

If your data is leaked, do not be surprised if a lot of third-party loan agents start calling you up.

FundRight keeps all your data anonymous to lenders.

Your lenders don’t need to know everything about you. They will only have access to the information they will need to approve your loan like your GRE and TOEFL scores.

But, how do lenders decide whether an applicant is eligible?

4. Eligibility Criteria For International Student Loans

The following things are thoroughly examined when considering your profile for a loan.

Eligibility Criteria For International Student Loans

As banks and NBFCs are legacy organizations, they will have their predefined markers. It can be difficult for you to secure a loan if you don’t meet those requirements. For instance, they might charge a higher interest if the university you are joining is not up to their mark.

FundRight’s lenders are unbiased.

On top of that, you get to select who gives you the education loan.

As of April 2022, we have 14+ registered lenders (more added every month) who are ready to help you give you a career boost. Just fill out your FundRight profile and select a lender according to your needs.

After you have applied for a loan, it should get approved as fast as possible.

5. How Long Does It Take To Get Your International Education Loan Request Approved?

The faster the better.

You are taking a loan because of an immediate requirement.

Depending on your lender it might take anything between 1-3 months before you get the money. The approval process of banks is usually slow as there is a lot of verification required. Expect it to be longer if it is a collateral loan.

FundRight approves your loan within 2 days.

Yep. Just fill up your profile and we will evaluate it and you will hear from us within 48 hours. You don’t have to call us for updates, we will drop you a message.

Get started now by learning more about FundRight.

FAQs About Education Loans To Study Abroad

1. Is Income Tax Returns (ITR) mandatory for international education loans?

No. More often than not the applicants don’t have a job.

2. Which bank has the lowest interest rate for education loans to study abroad?

It is hard to say as it depends on multiple factors like your university, course duration, etc. The best bet is to have multiple options and choose the one with the least rate of interest.

FundRight gives you the flexibility to choose between multiple lenders. 

3. What is the longest moratorium period?

Usually, it is the duration of the course plus another year. Your lender might increase that period if you request them under special conditions. For example, if you need more time to complete the course.

4. Can I get loans for short-term courses (less than a year)?

Banks generally don’t give loans for courses that are shorter than a year.

The good news is you can get loans for the short term from FundRight.

Create Your Account With FundRight Now

Get your education loan for studying abroad approved in five simple steps.

Get your education loan for studying abroad approved in five simple steps.

It’s literally that easy. Get started by creating your FundRight profile.

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Education loan for abroad studies without collateral vs with collateral: How to choose?

Education loan for abroad studies without collateral vs with collateral: How to choose?

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Education loan for abroad studies without collateral vs with collateral: How to choose?

A 9 CGPA out of 10. 1550 SAT score. A chance to study medicine at Harvard University. Yet Deepanshu Sharma is anxious.

He’s indecisive about an education loan for abroad studies without collateral or one with collateral. 

A collateral loan comes with a processing time of up to 20 days whereas a non-collateral education loan for abroad hikes the interest rate by up to 15%.

If you too are confused like Deepanshu, this guide will help you decide for yourself, how to answer the collateral vs. non-collateral education loan question. And that too in the next five minutes. The guide will offer data-backed discussions on:

  • Maximum loan amounts with/without collateral; do they wary?
  • Interest rates with and without collateral; how much will you pay?
  • Visa acceptance rates; does the category of your loan influence this?
  • Moratorium periods, do they differ for loans with/without collateral?
  • FAQs that will answer your burning questions

Note: the information is true at the time of writing. That’s April 2022.

Collateral vs. non-collateral education loan — a step-by-step comparison

What is the maximum amount you can get for collateral/non-collateral education loans?

  • Lenders offer up to Rs. 1.5 crores for collateral loans
  • Lenders offer up to Rs. 50 lakhs for a non-collateral education loan for abroad

(Note: actual loan amount can vary depending upon the lender, your chosen university, course, and past academic records.)

Why the difference? Lenders hold on to the ownership deed of the collateral until the loan is paid off in collateral loans. Thus, if you fail to repay, lenders can sell the asset and retrieve the money.

However, lenders have no such safety net in non-collateral loans. Thus, they offer lesser loan amounts in these loans. 

Collateral versus non-collateral education loans - Interest rates

The interest rates for both collateral education loans and education loans for abroad studies without collateral vary for each lender. Here are three examples of interest rates for collateral and non-collateral loans from leading lenders:

Collateral versus non-collateral education loans - Interest ratesCollateral versus non-collateral education loans - Interest rates

Note: Actual interest rate varies depending upon the loan amount and tenure and the co-applicant’s CIBIL score, among others.

It’s a misconception that lenders always charge higher interest rates for non-collateral education loans for study abroad as they don’t have the security of the collateral. However, as you can see from the above-mentioned data, that’s not always the case. 

When you search for your loan using FundRight, you can actually get a loan without collateral, and the lowest interest rate possible. That’s because on FundRight, you create your profile and then let lenders bid on your loan requirement. Where there’s competition, the customer wins. 

There’s more. Among our lenders are international lenders who grant loans without collateral, and without charging a higher interest rate because of this.  

Create a profile, receive bids from lenders, and choose one. From log-in to loan approval in 2 days – this is possible, with FundRight.

How does the loan affect your chances of getting a visa?

Every country grants visas for education loans with collateral. 

However, there’s a misconception that non-collateral education loans for abroad could cause your visa application to be rejected. On an online forum, a user claimed their visa was rejected because of a non-collateral education loan.

How does the loan affect your chances of getting a visa?

However, the lender refuted the claim. Furthermore, we don’t have substantial evidence that the rumor is correct.  

The chances of visa acceptance also depend on the university you chose and the course duration, among others. Unbiased advice can help. On FundRight, we have a team of education and financial advisors who handhold you through each step of getting an education loan and getting your visa approved. Write to us at grad@gradright.com to know more.

Collateral versus non-collateral education loans - moratorium

Lenders offer a moratorium period of 6 months to one year after your course for collateral loans.

A moratorium period is a time period when you don’t have to repay your principal loan amount or the loan amount interest for the duration of your course and a grace period after course completion. Lenders offer a grace period so you can finish your studies, get a job, start receiving your salary and then start repaying the loan with ease. 

Thus, if you have a two-year course, you won’t need to pay for 3 years, i.e., two years of course and one year of the grace period.

Note: During the moratorium period the interest amount doesn’t get waived off but gets deferred. Thus, you must repay the accrued interest when your loan repayment begins.

However, you must start to pay the interest amount from the following month after taking the loan for non-collateral education loans for study abroad. You can begin repaying the principal loan amount after 6-12 months after the course is over depending on your lender. 

Here’s a table to explain key factors:

Collateral vs. non-collateral education loan — a step-by-step comparison
Note: These numbers are approximate and can vary from case to case.

collateral vs. Non-collateral Education Loan - FAQs

1. What’s the difference between collateral and non-collateral loans?

Collateral loans are where you offer a tangible or intangible asset (house, fixed deposits, non-agricultural land) to a bank or a financial institution for getting loans. 

Non-collateral loans are where you don’t need to offer any assets to get loans.

2.What’s collateral in a loan? How many types of collaterals are there?

Collaterals are tangible or intangible assets you must offer as security to the bank or financial institution to get loans over a specified amount. For example, public banks such as Bank of Baroda and State Bank of India demand collateral for loans over Rs. 7.5 lakhs.     

You can offer two types of collateral:

  • Immovable property: Flats, houses, non-agricultural lands (you must mention the boundary and layout specification) 
  • Liquid security: Fixed deposits, bonds, LIC policies

3. Which financial institutions offer collateral loans and which ones offer non-collateral loans?

All financial institutions including public banks, private banks, and NBFCs offer both collateral and non-collateral loans.

4. What are the covered loan amounts for collateral and non-collateral loans?

You can get up to Rs. 1.5 crores for collateral education loans. Furthermore, you can get up to Rs. 50 lakhs worth of education loan for abroad studies without collateral. 

5. What are the interest rates for collateral and non-collateral loans?

Interest rates for both collateral and non-collateral loans vary from lender to lender. Check the section on interest rates to have a better understanding of the interest rates.

6. Is collateral better than non-collateral?

If you don’t have any collateral to offer, you must go forward with a non-collateral education loan and bear the slightly higher interest rates that lenders may charge. However, that’s not always the case and depends upon other factors such as loan amount and tenure and the co-applicant’s CIBIL score. 

However, if you think you’d like to hold onto the rights of your assets and want a faster loan processing time, opt for non-collateral education loans. 

7. What are the possible reasons for education loan rejection?

Lenders reject loans because they can’t afford NPAs (Non-performing assets). 

Lenders may believe your loan can turn into an NPA for the following reasons:

Collateral or secured education loan:

  • Incomplete paperwork 
  • The offered collateral is agricultural land or B-Khata property (in Bangalore)
  • The lender isn’t satisfied with the proof of admission to the foreign college or university  

Non-collateral or unsecured education loan:

  • The university you’re getting admission to is ineligible for the loan
  • The student has a poor past academic record
  • The co-signer doesn’t have sufficient earning
  • The co-signer is already paying EMIs for other loans
  • The co-signer has a weak CIBIL score

Collateral vs. non-collateral education loan — which one should you choose?

The right answer, the winner of collateral vs. non-collateral education loans depends on your needs and preferences. 

If you want to opt for higher loan amounts and lower interest rates, go for collateral loans. If you want a faster processing time and don’t have an asset to offer as collateral, go for non-collateral loans.   

However, with FundRight, you can make the most informed decision by comparing bids from lenders. On FundRight, 13 lenders (more added each month) including banks, international lenders, and NBFCs compete for your loan. Thus, you’ll receive the best of terms and may even save on interest rates. 

The two international lenders on our platform (more added each month) offer education loans for abroad studies without collateral without increased interest rates as well. 

If you want more knowledge on collateral and non-collateral loans, write to us at grad@gradright.com to have a chat with our team of education and financial advisors.

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How to Secure an Education Loan for Study Abroad?

How to Secure an Education Loan for Study Abroad?

Study Loans

How to Secure an Education Loan for Study Abroad?

The biggest bottleneck for students who want to study abroad is funding. 

The cost of tuition for a two-year MS course at a top US university may reach $50,000. That amount is excluding the cost of living for two years ~$30,000.

$80,000 is ₹60 lakhs (at ₹75 to the dollar), a rather vast sum for most students and their parents.

The obvious solution is to take an education loan for study abroad. But there’s competition there too. 

The number of Indian students studying abroad is growing. 

The latest data from January 2021 shows that at least a million of them are engaged in pursuing college and university degrees away from their home. 

According to the MEA, 261,406 went abroad in 2020. It hit a road bump because of Covid and went down to 71,769 last year but is expected to go back up in 2022. 

This guide helps you understand:

  • how you can prepare yourself for the education loan search process
  • the factors that influence whether you’ll get an education loan to study abroad
  • the basic eligibility criteria for an education loan
  • the documents you’ll need when you apply for an education loan to study abroad
  • the key terms that you need to know during the search process

We examine every aspect of the process and guide you through the pitfalls.

Education Loan – Basic Eligibility Criteria

Education Loan – Basic Eligibility Criteria

Education loan – Documentation

  1. Duly filled out loan application form
  2. Copy of admission letter
  3. Passport Photos
  4. Residence Proof – Voter Card, Passport, Aadhaar Card
  5. Photo ID Proof – Aadhar Card, Drivers License
  6. Age Proof – PAN Card, Birth Certificate, Class X Certificate
  7. Recent salary slips of co-signer
  8. Recent ITR of co-signer
  9. Recent bank statement of co-signer
  10. Recent Form 16 of co-signer
  11. If the co-signer owns a business then the recent P/L  Account and Balance Sheet in lieu of Form 16. 

4 key factors you must consider while taking an education loan

An education loan to study abroad is a step in the right direction. Not only does it provide you access to the best educational institutions and the finest teachers, but also the highest paying jobs.

But a loan has to be repaid. The slightest error in judgment could end up costing several lakhs a few years down the line.

What must you look for in an education loan for study abroad?

1. Tenure

How long would the education loan for study abroad last? How long do you have to repay? The duration is known in banking parlance as tenure.

Banks rarely lend for a period above fifteen years. Thus if you avail of the loan at 20, you have till 35 to pay it off.

Should you opt for a long tenure or short? That depends on how much you can afford to repay.

What you specialize in and the average starting salary plays a large part in your decision.

If you are starting in software, your salary could be as high as $120,000 when you take your first job.

For a postgraduate in biosciences, that is nearer $50,000. That is a colossal difference and would certainly factor in your decision-making.

Should I not always opt for a longer tenure?

No.

A long tenure means more months of borrowing and consequently a greater amount paid as interest.

At 10%, the interest would equal the principal in 7 years. Any longer and you are paying back more interest than what you borrowed in the first place. 

You need expert help in making this decision. FundRight has experts who would guide you through the decision-making process. 

Build your profile and access 100% free, reliable, unbiased, and specific advice that helps you choose the right university, the right scholarship, and the right education loan. 

2. Moratorium

A student can’t start to repay the education loan for study abroad the month after he receives it (as is usual with home and auto loans).

He would need to first complete his education and then find a job.

For many, this would include many months as an intern with little pay.

That is why education loans have a moratorium period.

During this time, the student does not have to pay any installments.

That does not mean the principal is not getting charged with interest. Only that no repayment is being asked.

A moratorium can again be of two types—principal moratorium and interest moratorium.

The first means no principal has to be repaid. The student has to repay the interest component.

The second means a total moratorium.

Be clear about which type you are being offered. If it is a principal moratorium, then your parents might have to pay interest while you are studying. For some families, that might be a burden.

3. Interest Rate

Banks charge interest based on the reverse repo rate. It is the rate that RBI charges when it lends money to commercial banks.

Banks add on their overhead, profit margin, and also a risk margin (for non-recovery) and sell you the loan.

Currently, the reverse repo rate stands at 3.35%. Banks lend at rates between 6.5% and 11%.

Choose between fixed and floating rates depending on your ease of repayment and financial condition.

A fixed-rate interest would never vary during the loan tenure.

A floating rate would change once every quarter, depending on the prevailing reverse repo rate.

The fixed-rate seems more attractive since you know your total outgo the day you sign the loan. But a floating rate lets you take advantage of low-interest rate regimes.

If you opt for a fixed-rate education loan for study abroad, it would be at least 400 basis points above the floating rate. But many prefer it since it brings certainty.

4. EMI

Equated Monthly Installment is the payment you will make to the bank every month.

There are two ways in which EMI calculation happens.

Fixed Installment

This is rather easy to understand. The loan principal and the entire interest are calculated. The amount is divided by the number of months the loan will be repaid.

Sohail takes an education loan for study abroad of ₹40 lakhs in 2020.

The interest rate is 7% every year, and the tenure is 10 years. Repayment would begin after a 2-year moratorium.

The total amount to be paid back:

₹4,000,000 (principal) + 2 * 0.07 * ₹4,000,000 (interest during moratorium) + 8 * 0.07 * ₹4,000,000 (interest during repayment) = ₹6,800,000.

EMI = ₹6,800,000 ÷ (12 * 8) = ₹70,833.

This would always be greater than reducing the balance EMI. Let’s see how.

Reducing Balance

Assume you take a loan from the bank you pay back with an EMI.

The installment contains a part of the principal and a part of the interest. The principal, therefore, reduces as you pay for years.

Since the principal reduces, the overall interest burden also goes down substantially.

Repaying your education loan for study abroad

We cannot calculate it with an easy formula. However, you can find plenty of EMI calculators on the net.

If Sohail repaid the above by reducing balance, the monthly outgo would reduce substantially.

Assuming ₹4,000,000 (principal) + 2 * 0.07 * ₹4,000,000 (interest during moratorium) = ₹4,560,000 is the total outstanding when Sohail begins repayment.

Reducing Balance EMI would be about ₹62,170.

Fixed interest vs. Floating and the type of EMI can get really confusing. Get professional advice from the team at FundRight and be sure that you are not going to end up paying more in the long run.

4 factors banks consider while granting an education loan

The education loan market is complex. It is quite tough to receive a loan unless you meet stringent criteria.

You need to understand why it is so painstaking.

Indian banks are flush with funds. Yet they scrutinize every loan application with a microscope.

That is because they are afraid of Non-Performing Assets which is banking lingo for people who did not pay back their loans.

NPA reflects on the permanent record of a bank manager, and thus they are careful. No one can blame them for ensuring they get the overdue promotion or salary hike.

You can make it easier for them to grant you a student loan for study abroad.

What do they look for?

1. Credit History

If you are asking for a bank loan for education, ensure that you have a spotless credit history.

But can you have a credit history if you are only 20? Yes, absolutely. It makes sense to work towards it from your eighteenth birthday (when you become old enough to take a loan).

Get a postpaid mobile connection. Pay the bills by the due date.

If you use app-cabs, opt for rides with a service that offers a postpaid scheme. All you need is to provide a PAN number for basic KYC.

And the best way, ask your parents to get you a credit card in your own name.

Quite easy to get one if you make a fixed deposit and ask for a card in return. A ₹1 lakh FD will be enough to get you a card with a limit of ₹70,000. Make purchases and pay them back within the due date without fail. In a year, you would have a credit rating of at least 800 (out of a possible 900).

Demonstrating to a bank that you have repaid a loan of ₹5,000 exactly on schedule is better than zero credit history.

2. Universities

Banks like the education loan process to be simple. That cuts down the manpower and time involved.

That is why they maintain a list of pre-approved universities. There is no possible way of knowing which institutions they approve but it is safe to say that the top 300 universities make the cut.

What does not make it to the list?

  • Community colleges are the first to be left out. These are higher education institutions in North America that offer simplified two-year courses.
  • The other is educational institutions in lesser-known places, mostly erstwhile Communist Bloc—Latvia, Lithuania, etc.

If you are applying for a 4-year undergraduate course or a 2-year post-graduate course or a Ph.D. in any of the well-known universities and colleges, there is nothing to worry about.

3. Repayment Capacity

The bank does not care if you are a brilliant student. Of course, that helps your cause but does not address their chief concern—will you be able to repay the loan?

If you scored above the 98 percentile in the Joint Entrance Examination, did M.Tech from IIT, Kharagpur, took a ₹50 lakhs loan, and end up with a Ph.D. from MIT in the preservation of water table in tropical climatic zones, your first job would probably be with an NGO.

You would finally end up as an IAS officer in the Ministry of Water Resources, River Development, and Ganga Rejuvenation.

In the best-case scenario, you will become a tenured professor at a European university by age 40. 

That does not inspire confidence in lenders who want you to repay fast.

But if you did an undergraduate degree in Data Science from Berkeley, you would probably head to a Wall Street investment bank or at least Amazon HQ in Seattle.

A salary of $100,000 and a sizable signing bonus, at age 22, is not out of the question.

No prizes for guessing whose education the bank would like to bet on.

4. Collateral and Guarantor

Banks like to be sure that someone or something will pay them back. That is why they want assets in place of the loan.

With a home loan, the home itself is the asset they hold. Same for cars and bikes.

But with education, that is not possible.

Hence, they want collateral, such as a house or non-agricultural land.

In case you default, they would sell off the asset and recover the investment.

Which collateral do they like most? A fixed deposit of the amount they are loaning out.

They can access it with no problem, and the cost of liquidation of assets is minimal.

Banks like to call a guarantor a co-signer.

A co-signer is usually a person who is a relative (parents, parents-in-law, or spouse) and promises to repay the amount due if you default.

Of course, they need to show a source of income that would allow them to do so.

Banks would want collateral, a guarantor, or both, depending on the case.

Every bank has separate criteria in this matter.

FundRight - the easy way to get a loan to study abroad

So many banks with so many different rules. A riddle, wrapped in a mystery, inside an enigma.

Some would want collateral and some might replace it with a guarantor but some others would prefer a guarantor who has a secure job and does not work as a lawyer (believe it or not that is an unspoken criterion at many banks).  

Why not log in to FundRight and create a profile. Our network of domestic and international lenders is increasing every month. Remember, when lenders compete for your loan, you get the best terms. 

Let the lenders bid for your loan instead of cooling your heels in one bank lobby after another.

You would have to wait for several weeks to avail of a loan ordinarily. With FundRight that is cut down to as little as a couple of days. 

Your data is safe and secured on FundRight. No one would harass you with spam messages asking if you would like a home or car loan. 

Find your best education loan for study abroad

3 FAQs on getting your best education loan to study abroad

A. Are unsecured loans possible?

Indian banks cannot provide unsecured loans above a few lakhs.

Those who have a well-paying job can get a credit card with an ₹4 lakhs limit, but that comes with a usurious interest rate of 48% per year.

Needless to say, such a rate would make your loan of ₹30 lakhs into a crore before you emerge from the moratorium period and start earning.

That is not to say private lenders can’t give unsecured loans.

You have to research and find out if any such lenders are available. But be prepared to pay more interest because unsecured loans have a heavy default rate and other customers must make up the shortfall.

To know more about collateral v/s non-collateral loans, read our guide.

B. Does the guarantor need an ITR?

Yes, they require an ITR for several years. This is to demonstrate that they have a steady source of income.

C. Can I get a student loan for study abroad without a guarantor and collateral?

If you are asking a financial institution registered as a bank under RBI, then no. Banks have to adhere to national and international laws while lending.

That does not mean a private lender or an NBFC or a crowd-funded site cannot fund such a loan.

Summing it all up…

Education abroad opens up career possibilities that just are not present in India. Studying abroad can mean a work visa later on. Employers find it easier to sponsor those who are already abroad. 

For those in STEM, universities abroad have funding and equipment that no Indian university has. An affordable student loan for study abroad is all that stands between you and your dreams. 

Let FundRight help you have easy access to an education loan for study abroad.

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Does High GRE Exam Score Influence Your Education Loan for Studying Abroad?

Does High GRE Exam Score Influence Your Education Loan for Studying Abroad?

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Does High GRE Exam Score Influence Your Education Loan for Studying Abroad?

Is GRE exam a gateway to studying abroad, or a barrier?

The shortest, truest answer is: it shouldn’t, but it does. 

But then, you’re not here for a short answer. And truth—sadly, in the disorganized study abroad education loan market in India—is subjective. 

To help you find the answer for yourself, we’ve put together this guide. 

In this guide, we’ll answer questions like:

  • Does a high GRE exam score improve your chances of getting an education loan for studying abroad?
  • What’s the lower GRE score for which you can expect to get an education loan for studying abroad?
  • Does your GRE exam score influence whether you can get a scholarship or grant for studying abroad?
  • What exactly is a poor, average, good, and great GRE exam score?
  • Whether a high GRE score will guarantee that you get an education loan for studying abroad and admission to a top-rated university?
  • What is ETS? (This is important, read on.)
  • Can a bank deny you a loan based on your GRE exam score?

Does a high GRE exam score influence your education loan for studying abroad?

The best answer you can hope for is—It can. But it shouldn’t. 

Whether a bank considers your GRE score as a make-or-break factor on the loan decision, depends entirely on factors beyond your control. Stuff like:

  • Does the bank believe you’ll get an admission offer from your university of interest?
  • Does the bank follow an internal policy of only entertaining loan applications from students whose GRE score is above a defined minimum?
  • Does the bank have enough loan applications to meet its financial disbursement targets? (if no, expect their appetite for risk to rage on).

If you’d let us be philosophical for a moment, shouldn’t we ask whether your GRE exam scores should be allowed to influence your future?

GRE scores aren’t always fair

Here’s the one big question you want to be answered in plain English—will my GRE score influence the bank’s loan decision?

But you won’t find a plain answer anywhere—not on Google, not on YouTube, and certainly not on the lips of your loan agent.

That’s because the plain answer is boring and dissatisfactory. 

This is certainly an interesting question, and certainly one that draws strong opinions

Problems with GRE exam scores

In the same article, Clayton writes that GRE exams are “like taking a cancer test that was invented in the 1940s.”

Opinions aside, you have to live with the GRE exam. 

Prepare for it, respect it, and celebrate it.

Until the vagueness comes back to haunt you, as you wonder whether your GRE score will influence the bank’s decision to grant you an education loan to study abroad.

But we’ll tell you all. So that you can anticipate, and give yourself the best chance to:

  • Not waste your time with a bank that might eventually reject your loan application because of what they believe is a below-par GRE score
  • Not squander an opportunity to secure a low-interest, highly-flexible education loan for studying abroad, irrespective (and not because) of your GRE exam score.
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Are there any guidelines for the suitable use of your GRE score?

First, a word on ETS. 

What’s ETS, you ask? 

It’s the world’s largest private nonprofit educational testing and assessment organization. GRE exam is one of the many tests this organization administers. 

ETS and GRE

ETS’s guidelines dictate:

  • How an institution can interpret your GRE scores correctly
  • Which purposes your scores can be evaluated for
GRE score influence on education loan?

Anyway, what does ETS define as fair use of your GRE scores? Here’s a screenshot from their website. 

Interestingly, ETS also defines what’s an unfair use of GRE exam scores. 

GRE score shouldn’t influence education loan

You see, nowhere does ETS comment warrant the use of GRE scores to evaluate the creditworthiness of a candidate. 

So, perhaps the only correct answer to your question—does a high GRE exam score improve your chances of getting an education loan for studying abroad?—is NO. 

But in real life, the answer is—yes, it may. 

A high GRE score gives you the edge, particularly when the bank’s comparing your application with another student’s application. 

That’s yet another reason to rely on a platform that makes lenders compete for your loan, so you get the fairest terms. Of course, we mean FundRight. 

FundRight for your best study abroad education loan

Why does a bank ask for your GRE score when you apply for an education loan to study abroad?

There are valid reasons for this. 

Banks would, naturally, not want to spend administrative man-hours evaluating applications of students who score below-par GRE scores. 

That’s because banks believe that such students won’t get admission to a reputed university. And even if they do get admission to some university, that university won’t assist the student with a high paying job. 

Most banks only trust a tiny list of universities while evaluating a student’s career prospects. 

So, it’s almost certain that your GRE score will be considered. The trouble is that you can’t predict where your application will be accepted or rejected based on logic, or the whims (and misinformation) of the evaluating officer. 

Don’t take a chance. Trust the secure and unbiased medium—FundRight.

What does a bank consider a good GRE exam score?

Banks and NBFCs don’t disclose exactly how they interpret your GRE score. However, you might draw an inference from this.

What’s a good GRE score?

The most reliable method of interpreting the goodness of your GRE scores is to use the Interpreting Your GRE Scores guide from ETS. 

General Test Performance Information (Based on the performance of all test takers who tested between July 1, 2017, and June 30, 2020) 

GRE Mean and SD

Will a high GRE score guarantee admission?

No, it doesn’t. 

To be more precise, a high GRE score can ‘guarantee’ admission to any mediocre institute (that would admit you even if you’d scored half the marks), but that’s not what you mean by ‘admission’, right?

Apart from your respectable GRE score, you’ll need

  • a great GPA (Grade Point Average)
  • an extraordinary SOP (Statement of Purpose)
  • a convincing letter of recommendation
  • (preferably) work experience

Note that low GRE scores don’t mean that all is lost. Persist. Find a good enough university. 

You know a dozen, but there are 1000s. 

You can’t handle this information. 

You need AI at your service. 

You got it. 

It’s SelectRight. 

Do banks check the GRE score to evaluate applications for education loans to study abroad?

While a bank will ask for your GRE exams scorecard, they won’t deter you from applying for an education loan even if you don’t have your scorecard yet. Eventually—though—you’ll need to submit it.

What is the lowest GRE score at which a bank will process an education loan application?

That’s tough to say. 

Traditionally, the belief has been that the following GRE scores (25th percentile or lower) mean a student is unlikely to be admitted to a good university. 

  • GRE verbal scaled score of 145
  • GRE quantitative scaled score of 147

Can a bank deny you an education loan based on your GRE exam score?

It can’t. Unfortunately, you’d never actually know why a bank rejected your education loan application. That’s because banks don’t declare a rejection reason officially (even though your loan agent might say something to appease you).

We’ve explained earlier how ETS defines appropriate uses of GRE score, and ‘to evaluate a student’s credit-worthiness isn’t an approved use.

We guess the more important question for you is – will you sue the bank if it denies your education loan for studying abroad? No.

The right question is – what can you do to give yourself the best chance of getting a loan, and that too at the lowest interest rate, and with the most flexible terms.

We’re biased, but we aren’t lying when we recommend FundRight. We built this platform just so students won’t have to plant all their eggs in a tiny basket. 

Instead, why don’t you let lenders compete for your loan? Try now; it’s worked for 1000s of students, sure you’ll find your best education loan for studying abroad here.

Some other questions you might want to be answered.

Does your GRE exam score influence whether you can get a scholarship or grant for studying abroad?

A high GRE score doesn’t guarantee you a scholarship. However, it can improve your chances significantly. A low GRE score, however, isn’t a deterrent, as most of the important scholarships consider factors more important than your GRE score. 

Also, your GRE score is unlikely to influence whether you receive a grant or not, because grants are meant to be need-based, not merit-based.

How to find the right university based on my GRE score?

A detailed answer is nearly impossible. Because there are 1000s of great universities in the USA alone! And the score ranges differ based on the postgraduate courses (MS or MBA).

We recommend you don’t rely on outdated information on the web. Instead, first identify a shortlist of 20 universities, and then find out their past acceptance scores for them.

Is 300 a good GRE score for MS?

We just can’t say! Sorry, we’d rather be right than agreeable. 

300 might get you an admission offer from Louisiana State University [QS World University Rankings 2022 Rank 800+] but won’t get you into Florida State University [QS World University Rankings 2022 Rank 475].

Is 300 a good GRE score?
Is 300 a good GRE score?

Is 325 a good GRE exam score?

In comparison to 300, yes 325 opens up dozens of universities for you, from among those ranking among the top 500 universities in the world. 

Wrapping Up…

We hope this guide helped you with the answers you needed. We’ve tried to be as objective as possible, and hope you found this guide helpful. 

For more specific queries, don’t hesitate to ask our financial and education advisors. Write to us at grad@gradright.com.

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Are you Searching for Education Loan for Studies Abroad? These Tips can Ease the Stress

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Are you Searching for Education Loan for Studies Abroad? These Tips can Ease the Stress

The GMAT results are out. With a score of 310+, you are sure that at least five of the top 20 US universities would accept your application.

The other big question surfaces: How do you fund the program? 

You’ll need $40,000 for a two-year study-abroad program. That translates to a whopping ₹30 lakhs.

The cost of education is not your problem. After all, a degree from a well-known university abroad improves your employability by many folds. It could even be the ticket to settling down abroad with a permanent visa. 

The problem is this. Education loans for studies abroad are tough to crack, particularly using traditional search tactics (ask a senior, ask a consultant, visit the neighbourhood bank).

The loans market is disorganized, correct information is inaccessible, and sellers (lenders) enjoy inordinate leverage over buyers (students). 

We developed this guide to answer these questions:

  • What’s the standard funding strategy for most students?
  • What are the loopholes and knots in the traditional loan-search process?
  • How does FundRight categorically eliminate all these problems?
  • How can you keep stress-gremlins at bay, as you search for your best international education loan?
  • How, and where to find a scholarship or grant suitable for you?

Let’s begin.

How to secure sufficient funds for study abroad?

Most students rely on a hybrid strategy—fund a part of the education by scholarships or grants, and the remaining by an education loan. 

1. Scholarships and Grants

This is so obvious, we don’t even mind repeating. 

A scholarship is a financial aid granted to a student. It is based on merit. A grant is however need based and might not be reserved only for the brightest students. 

Large scholarships are, however, elusive. Stiff competition, lower probabilities. Any scholarship that pays for the entire cost has thousands of applicants from around the world. 

Many scholarships are targeted (e.g. scholarship for Commonwealth students, scholarship for women, scholarship for students of color, scholarships for LGBTQ+ students). Such a targeted scholarship could ease your scholarship-search burden.  

Who sponsors these scholarships? 

  1. Government
    The first is government scholarships.

    The most suitable example is the Fulbright Student Scholarship, a highly prestigious award. It is funded by United States Cultural Exchange Programs. Of the 8,000 Fulbright Scholarships awarded every year, 4,000 are for international students.

    Another example is the GREAT Scholarship offered by British Council that offers £10,000 to a student pursuing study in 41 empanelled UK universities.

     

  2. Institution
    An example:
    – 1 in 5 students at Harvard pays nothing.

    – 55% receive some amount of financial relief.

    – In the 2020-21 academic year, 47% of students at Oxford received full or partial funding.

    The All Souls Hugh Springer Graduate Scholarship, Clarendon Fund, Oxford-Reuben Scholarship, and at least a dozen more scholarships are applied automatically when you apply to this august institution.

     

  3. Others
    Besides governments and institutions, private individuals and companies also offer scholarships. Some examples:

    The Tata Scholarship offers funds to Indian students who have been accepted for undergraduate studies at Cornell University.

    The K.C. Mahindra Scholarships pay ₹ 4-8 lakhs to deserving students who have secured admissions abroad.

    The Narotam Sekhsaria Scholarships provide up to ₹ 20 lakhs to scholars studying at 55 universities. 

2. Student Loans

Education loan for studies abroad are a popular retail banking product in India.

Public sector banks, e.g. State bank of India, Punjab National Bank, Bank of Baroda, and Canara Bank, offer loans for 6.9% to 9.95%.

ICICI Bank offers loans of ₹ 1 crore and HDFC Bank offers ₹ 45 lakhs.

Availability isn’t the problem. Still, you can’t expect to saunter into a bank branch, declare your funding requirement, and enjoy small talk with the manager while a staffer readies your dossier. In reality, you’ll probably spend weeks in the loan-search process. You’ll:

  • Flitting across bank branches
  • Talk to half a dozen loan agents every other day
  • Lose your sanity blocking unsolicited callers 
  • Get used to ceaseless waiting without updates from bank staff
  • Eventually, be disappointed by an arbitrary application rejection

FundRight brings down the curtains on this obscene tragedy. 

Think of FundRight as your ticket to your best student loan for study abroad. An affordable, favorable, quick, zero-hassle, and transparent education loan, from the most reputed lenders, domestic and international.

Is FundRight different from what you’d do usually–apply for an education loan at multiple banks? Yes, and here’s how:

  • On FundRight, you don’t chase banks; lenders bid for your loan.
  • One profile connects you to 14 lenders (we add more every month)
  • Your sensitive information remains inaccessible to lenders until you show interest in their offers; bye-bye spammers
  • FundRight is free. No sneaky charges, no misinformation, no secrets. 100% free. 
  • Not only do you get the choicest offers, but also a team of experts who help you select the one that is best for you.

There’s more. 

Study loans for abroad—stuff you ought to know

  1. Moratorium
    Usually, when you take a loan to buy a car or house, the repayment starts immediately.
    That is a problem for students. They have to complete their education and only then can begin to repay the loan from their salary.
    Hence, there is a gap between receipt of the education loan for abroad and the date repayment is going to commence. This is known as the moratorium period.

  2. Tenures
    You could choose to repay the student loan for study abroad in six years. Again, you could, but might not be able to, unless you net a substantial starting salary. That is why banks offer a tenure of 15 years in most cases.
    This tenure includes the moratorium period.

  3. Co-signer
    Banks hate defaults.
    That is why they insist on co-signers for education loans for studies abroad. A co-signatory guarantees the repayment of the loan in case you default.
    Usually, a family member is the co-signatory.
    The co-signer needs to have a steady source of income and have solid roots in society.

  4. Collateral
    Education loan for studies abroad without collateral is possible but unlikely. 
    If the co-signatory has a high net worth, large income (as shown by ITR for the past few years), and owns the immovable property, the bank might not ask for collateral.
    Otherwise, they might require a sum to be held in fixed deposit at the branch or demand a property deed as collateral.
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Do bank loans have any drawbacks?

An education loan for study abroad carries an interest component on repayment. Over years, that might accumulate and become too large to repay. A loan of ₹40 lakhs is substantial, and it is not ideal to begin life with such a burden.

However, for further education, it is necessary and an acceptable liability.

The biggest problem with banks is that they are unwilling to finance education that they deem is unprofitable.

While a student of Comp Sci might easily get a foreign education loan if they were to study at the University of Southern California, someone wanting to do an MBA in Finance from Durham University will be refused.

The rationale? There are too many MBAs fighting over jobs and Durham University lacks name recognition.

While that holds water from the lender’s point of view, it is a sure-fire dampener for the student.

FundRight – How to find your best education loan for study abroad?

The Gordian Knot.

Ancient Greek lore has it that Phrygians wanted a king. Anyone wanting to be the anointed one would have to untie an inextricable knot.

Many failed. Alexander arrived and cut through it with his sword.

FundRight is our attempt to do what Alexander did, to the education finance industry. 

1. From seller-advantage to buyer-advantage

FundRight lets banks bid to provide you with an education loan for study abroad.

If you were running after a lender for a loan, you lose momentum. Let them come to you and put their money where their mouth is.

When you choose FundRight for your international-education loan, you give yourself the best opportunity. Because when banks compete for your loan:

  • they release their best offer, which could mean a cheaper loan, and
  • they don’t rely on myopic opinions of your academic and career prospects, which means a higher approval percentage.

2. 14 lenders, one loan application

As a student, you have to create a profile, and then FundRight does all the heavy lifting.

The toughest part of getting an education loan is cooling your heels in grubby banks lobbies waiting to meet the manager.

Even when it happens, he has a surly expression and wants to be thanked. You did the hard work and burned the midnight oil! Your father is the guarantor who would pay back every penny if needed. Why does the manager need to be thanked?

None of that with FundRight. 

3. From profile to loan, in 2 days

The process is so easy, you could wiz through it half-asleep. 

  1. Register on FundRight
  2. Complete your profile
  3. Receive bids for your loan
  4. Compare and select
  5. Upload your documents

All done; now watch as the lender does the rest, until the money is disbursed.

All done, within 2 days!

All done, without trudging miles from bank to bank in a searing Indian summer.

How to eliminate stress from your education loan search?

Do these 3 things. 

  1. Begin early. 
  2. Don’t chase banks, let banks bid for your loan. 
  3. Know your scholarships and grants options. 

This, and some patience, will sail you safely across the choppy waters that lead to the best education loan for study abroad.

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Best Education Loan For Studies Abroad

How To Crack Your Best Education Loan For Studies Abroad?

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How To Crack Your Best Education Loan For Studies Abroad?

Sushil Kapoor is looking downcast during our Zoom call. In Philadelphia–where the 27-year-old works for an analytics firm– it’s a balmy 24°C day. Yet Sushil sounds like he’s in the clutches of a bleak Alaskan winter. In 2017, Sushil took a rather hefty ₹35lakhs education loan for studies abroad (MS in Comp Sci at Purdue University). 

Now, 2 years after having graduated, and in spite of having a decent job, a chunk of Sushil’s salary disappears as loan settlement. He can only afford a one-room studio apartment. 

Sushil is not alone. There are thousands of Indian students in their late twenties with the same predicament.

Sushil will probably pay off his loan by the end of the 15 year payback period, but he’d have lost lakhs in avoidable interest payments. That’s not the worst life, but it could have been way better. 

How to negotiate the best education loan for studies abroad so you don’t fall into a debt trap like Sushil? Read on. 

In this guide, we’ll answer:

  • Why should you negotiate like a Fortune 500 CEO for every half percentage of loan interest rate?
  • Why shouldn’t you accept the obsolete system of education loans? 
  • Why is it not okay for banks to take weeks to process your loan application?
  • How can you secure your sensitive information from misuse?
  • How does FundRight help you crack your best loan for international education?
Best Education Loan For Studies Abroad

How to crack your best education loan for studies abroad?

1. Negotiate as if your life depends on the rate of interest

Perhaps you believe you’ll get your education loan for 10% interest. That’s not the worst, if not the best. 

Don’t let percentages fool you. 

Your education loan is likely to run into tens of lakhs. Even half a percentage point matters. 

  • For every 50 basis point difference on an ₹10 lakhs student loan for studies abroad, you are paying ₹ 5,000 more every year. Over a decade that is ₹50,000. 
  • Think of a ₹22 lakh loan with a 300 basis point difference in education loan interest rate. The payout is ₹6.6 lakhs more—about 30% of the principal.

Thankfully right now, education loans for abroad are affordable because Reserve Bank lending rates are low.

But don’t bank on it. As the economy shifts into high gear post-Covid and averages 9% growth, there will be inflation and rates will rise again to make lending costlier.

The FundRight Advantage

On FundRight, you begin by creating your profile. In this, you detail your foreign education plans and funding requirements. Then, public and private lenders bid for your loan. 

Someone needs your business more than the others. That’s where you’ll save anything between 2% and 5% of the interest rate. And no hidden costs are tucked away in the fine print.

If your grades are consistently high, even an education loan for studies abroad without collateral is within your grasp. Factor in the opportunity cost of your collateral; don’t waste a seed when it can flourish into fruit. 

2. Don’t settle for the vanilla loan product

The lending market in India is a shape-shifting labyrinth. 

Credit cards were once the exclusive preserve of those who banked with StanChart and Citi. Today, you buy your gizmos on interest-free EMIs. Then you use postpaid credit money to buy over-sweet (and overpriced) cappuccinos at the neighbourhood cafe.

Strangely, education loans are still stuck in the 90s. Obsolete, inefficient, and opaque education loan processes have prevailed. Until now. 

The FundRight Advantage

If you were to request loan quotes from, let’s say, 10 banks, you’d lose your sanity. 

FundRight eliminates this hassle. 

We provide access to over 13 lenders (more added every month). Who are these lenders? Banks, NBFCs, international lenders looking to invest in education loans for studies abroad. One profile, visible to all lenders, so that you don’t go crazy answering the same boring questions on half a dozen calls a day.

3. Expect quick responses; as quick as 2 days

Banks do not approve foreign education loan requests immediately. They ponder over applications of study loans for abroad education. 

And then they ask questions; lots of them. Like… 

  • Who will be the co-signer?
  • What assets do they have?
  • How do we know you will not go abroad and default?
  • What sort of salaries do recruiters pay to students they hire from this university?
  • Are any of your friends looking for a loan too?

Most educational loans are approved at the branch level. The branch manager would rather lose a customer than risk adding non-performing assets to the balance sheet. The result is a scary rejection rate, almost extortionate interest rates, and inflexible repayment terms. 

The FundRight Advantage

You get a response in as little as 2 days. This is no joke. In 2 days, you can secure your education loan for studies abroad. Your local bank branch won’t even learn to pronounce your name correctly in such a short timeframe. 

4. Protect your sensitive information from prying eyes

As it is, the education loan process isn’t customer friendly. Surely, you shouldn’t have to reveal unneeded financial information. Surely, your information mustn’t be used for any purpose other than what it was acquired for. Does this happen?

The secret pleasure of the banking industry is cold calling. Once they have your details—credit report, income, assets, and so forth they would go on making unsolicited calls for selling home and car loans.

It is annoying and subscribing to the Do Not Disturb list does nothing to prevent their solicitation. Of course, your inbox will be stuffed with spam emails.

The FundRight Advantage

On FundRight, your profile remains anonymous to lenders. They don’t need, and can’t access your sensitive information on FundRight. All they see is the information they need to propose a loan offer. Nothing more, nothing less. Neither will FundRight nor will any of our lenders ever access or use your data for any purpose other than connecting you to your best education loan. 

5. Expect unbiased advice

Loans are complex financial products. The paperwork can run into a binder full of pages. The fine print can be astonishingly complex.

Most recipients are so stressed about receiving an education loan for studies abroad that when they finally get one, they are too exhausted to read the T and C carefully.

That’s why they get slapped with penalties, fines, and excess interest right, left, and centre.

Is it unethical? Maybe. But after all, it was all there, but they never bothered to read it.

Extrapolate it to five lenders.

  • Are you going to read two dozen pages of legalese?
  • How are you going to compare them without an expert lawyer by your side?
  • Besides, don’t you have to worry about acing the scholarship essay or getting an F-1 visa?
The FundRight Advantage

When you receive loan offers from any lender on FundRight, you can consult our team of financial and education advisors. They’ll break down the loan terms, help you compare offers, and assist you in cracking your best education loan for studies abroad. 

What else do you get with FundRight?

A lot.

1. Lenders who understand the modern student’s expectations

Most lenders have a blinkered view that would put a horse to shame. They’re familiar with a few prestigious universities (out of 1000s). And they deprioritize applications for study loans for other universities. 

  • USC, NJIT, Columbia University—you are sure to get a loan.
  • Brown and Northwestern—yes, but with a bit of grimace.
  • Tulane—goodbye and see you next time.

Yet Tulane in New Orleans has been alma mater to 155 Fulbright scholars, 17 Rhodes Scholars, 23 Marshall Scholars, and two Nobel Laureates in medicine.

On FundRight, your profile is evaluated purely on merit. It’s not viewed through the blurred lenses of outdated local bank branch managers. 

2. A dashboard that saves you hours

You build your profile. You upload basic documents. You receive bids. You compare, select, and that’s it. 

No struggling to coax idle bank officials to hasten up their luncheon. 

No toiling in serpentine queues. 

No tiresome photocopying and printing routines.  

No creating profiles on e-banking channels of major banks. 

A single, modern, user-friendly dashboard on FundRight, that’s it.

3. A system that trusts data, and nothing else

A dozen expensive international universities, an army of ‘education counselors’ (in plain English–commission agents), and a network of myopic lenders can rig the system.

We want to break this stranglehold and make education truly democratic. The FundRight process is institution agnostic, bank-agnostic, and immune to the intrigues of education counselors. This is your safe space where you can and will crack your best education loan for studies abroad.

4. Lending solutions for short term courses

Banks do not cover the cost of short-term courses (duration less than a year).

Maybe you have a post-grad degree in statistics from a top IIT and need to go abroad to learn more about data analytics. You have honed in on a few PG Diplomas in Data Science that last 6 months but need ₹10 lakhs to finance your education and boarding.

At FundRight, you can find loan offers for such short-term courses.

The final word on how to crack your best education loan for studies abroad

On FundRight, you’re safe. Completely safe from the nexus of commission-crazed loan agents and misleading education consultants. On FundRight, multiple lenders compete for your loan. So, you’ll get the cheapest and best education loan for studies abroad, flexible repayment terms, and unbiased education/financial counseling. FundRight is 100% free. Our goal is to wipe the fog off your spectacles as you try to make sense of your foreign education funding options in a treacherous marketplace. 

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GradRight's FundRight - World's First Education Loan Bidding Platform

GradRight: A Higher Education Global Fintech PlatForm From India For The World

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GradRight: A Global Fintech PlatForm From India For The World

In an exclusive interview with Outlook Money, Aman Singh & Sasidhar Sista, Co-founders, GradRight demystify financing for higher education abroad.

Aman Singh and Sasidhar Sista, Co Founders, GradRight

Tell us about the education loan landscape in India.

  • Since 2001 when India started education loans the loan book has increased 60 times to INR 60,000 crores in 2020 at a CAGR of 22%. 
  • While some public sector banks have struggled with high NPAs because of government mandates, the private sector has thrived. 
  • A leading private lender started in 2008, has grown at 66% CAGR to build a loan book of more than INR 60,00 crores. 
  • With the expected increase of Gross Enrollment Ratio from 25% to 50% over the next decade, coupled with the increasing cost of higher education our outstanding loans may rise to INR 3 lac crores. 
  • There are significant opportunities in this sector if you notice the number of new NBFCs entering the space and the increased VC participation in the last five years.

What is the ideal approach to taking an education loan?

  • Start with a real education budget that should account for the total money students can spend from savings, plus education loans. 
  • If the budget estimate is too high, a student will end up with a university that she cannot fund, too low and it may lead to the student missing out on choosing a better university for her career. 
  • Then estimate the total cost of the program including tuition fees, living costs in the city the college is located along with expenses such as the cost of books, electronics, initial room set up, local trips, health insurance, airline expenses, visa application, health check-ups, university applications, and counsellor fees. 
  • In the U.S. the living cost in New York is nearly 1.5 times the living cost in Philadelphia.
    Parents occasionally underestimate the cost by INR 10-15 lacs. 
  • Remember to analyze college choices based on true return on the program from a financial lens and avoid being driven by biases, peer pressure, and hearsay. 
  • Be careful in evaluating placement statistics that may not be a true indicator of their earning opportunities. 
  • Students can schedule a free call with a GradRight financial advisor to get the right estimate.

How can a student get the best education loan?

  • Without GradRight, loan application and approval can take 7 days to 2- 3 months, depending on the lender, processing of collateral, and the time required for the follow-up. 
  • Start the loan process in advance, preferably immediately after getting test scores. 
  • Various types of loans are available with differing interest rates and payback times based on academic profiles and parents’ financial profiles. 
  • GradRight’s FundRight is the World’s first student loan bidding platform where 12 public and private, domestic and international banks and NBFCs compete transparently to offer the best education loan based on their credit policies, student profile, and college choices. 
  • Students complete their entire loan process online and get the best loan for their profile.

What are the insights that one can use to get the best deals?

  • Taking care of some nuanced factors can contribute immensely to getting an awesome loan.
  • Students with test scores (GRE, GMAT, SAT, TOEFL, IELTS) are three times more fundable. Each bank recognizes a set of global universities for their placements. 
  • Sometimes, even with an average score, students can get a great admit and thereby, a good loan. 
  • Banks prefer the US, and Canada the most.
    UK, Singapore, Australia, Germany, and Ireland are also considered positively. 
  • The maximum unsecured loan amounts one can get will vary based on the country you choose to study in. 
  • Parents’ credit or financial discipline will have an impact on what you can get as an education loan, as most of the lenders will ask for them to be co-applicants. 
  • Having too many active EMIs will also deter banks. 
  • Our SelectRight platform can help students choose the most bank-fundable universities for their unique profiles. 

What is your mission at GradRight?

  • Our vision is to build the leading education fintech company dedicated to making education accessible and affordable. 
  • Our mission is to enable students to maximize their Return on Education(RoEd) by ensuring that they can study at the Right College at the Right Cost.

How are you adding value to the banks?

GradRight's FundRight - World's First Education Loan Bidding Platform
  • “We are very glad that GradRight has picked up really fast. In 2020, GradRight was one of the first partners we signed up with for one of our new initiatives. Fast-forward to today, GradRight is among our top partners. I’m very happy with how our relationship has developed with our combined vision of helping out students & being an instrument of change in their lives.” – Mayank Sharma, Country Head, Prodigy Finance.
  • GradRight is already the preferred sales and service partner for all its lending partners. 
  • Since the launch of FundRight, only 10 months ago, we have received INR 2500 crores in loan requests and helped secure close to INR 400 crores in loan approvals. 
  • Banks attribute GradRight in helping them find exceptionally fundable students in one place and cut up to 75% of the cost of sales and pre-disbursement services. 
  • With a first principle approach, GradRight created an education loan journey for banks and students that drove up the approval rates for banks and created unseen access to high potential students across hundreds of Indian cities and towns at once.

How are you adding value to the students?

  • “Anyone considering graduate student loans should seriously check out GradRight. Seeing a bevvy of options from different banks laid out so comprehensively and conveniently was a huge source of relief and led me to options I would not have found otherwise!” -Raghav Adlakha, Alum, Harvard Kennedy School.
  • With GradRight’s FundRight, students have saved INR 30 crores in interest expense to date. 
  • We are making higher education financing more accessible. 80% of our students come from 2000 plus, Tier 2 and 3 cities of India with limited access to education loan options. 
  • We have increased the chances of securing a loan by 500% by bringing all the top education loan providers on one platform. 
  • With GradRight students are choosers and not beggars for financing their higher education.
    All this is possible because of the commitment of our Student Success team led by our colleagues Shivani Mani, Hasil Gora, Prachi Singh, Aayush Nagpal, and Lovish Rawal. 
  • “There’s information asymmetry in the student loan market in India. The loan journey hence becomes overwhelming. At GradRight, the Student Success team is driving rational program choices, financial awareness, and well-negotiated loan decisions/terms for our students. We want to make them feel comfortable with the loan choices they make alongside GradRight.” – Shivani Mani, Student Success

What are your future plans?

  • To power students’ financial transactions, we will soon launch, World’s first student-centric score, GradRight Credit Rating API. This will unlock the next level of efficiency and value for all stakeholders in the ecosystem. 
  • We will scale up FundRight in India and expand our services in Asia and the Middle East. 
  • SelectRight will be a game-changer in the sector and will enable students to make better decisions on selecting high return programs.
GradRight team

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