Studying abroad is a dream come true for many Indian students. However, the cost of education abroad can be very high, and not everyone can afford it. Indian parents pitch in with their savings and also resort to educational loans to bridge any gap. Such study loans help students in paying for their education and other living expenditures like tuition and other fees. In an email conversation, Rajesh Kachave, Chief Business Officer-Student Lending and Insurance Business, Avanse Financial Services, offers crucial advice for students looking for loans for international education. Excerpts:

Is June-September an important period for students going abroad for studies? What important things need to be kept in mind by students during this period?

The June-September period is an extremely crucial timeframe for students aspiring to study abroad for two major reasons – some are all set to fly abroad for the fall intake, and some start preparing to fly overseas a year in advance. For the fall intake, they should start preparing at least a year before to be completely ready with all the nitty-gritty of their study-abroad journey. For flying abroad during the fall intake of 2024, students should start planning in July-September 2023.

What are some of the key things that lenders consider while providing loans to students?

Students are usually first-time borrowers, and education loans are their first step towards financial independence. Therefore, robust research and analysis are important for making a well-informed choice. Specialised education-focused NBFCs have emerged as alternative lending institutions that provide hyper-personalised education financing solutions to enable students to fulfil their academic aspirations. At Avanse, we believe in assessing the aspirant’s profile thoroughly rather than depending only on the co-borrower’s financial background. As a part of this approach, we evaluate the student’s past academic performance, entrance test scores, the pedigree of the university/institute and courses and more such parameters to derive an employability potential score.

What are the most important things to keep note of while taking an education loan for studying abroad?

For students planning to study abroad, securing an education loan is often a crucial step towards financing their academic aspirations independently. Hence, it is essential to make a well-informed decision. Students must conduct thorough research to understand the nitty-gritty related to such loans. This will not only debunk all the misconceptions related to student loans but also allow students to choose the best possible financing solution to pursue their education.