Are you confused on whether to secure admission for your higher studies first or to complete the loan procedure? Most financial institutions require confirmed admission to sanction your loan application. On the other hand, international universities prefer students who have the necessary funds in place for granting admission.
Most colleges will not provide you with a long time period before you have to pay the course fees after securing admission. As a result, you may have to rush during this little time to make arrangements for the funds.
Additional Read: Reasons Education loan is preferable than Personal loan
However, some lenders allow you to apply for education loans and seek approval before the admission is confirmed. This enables you to determine your exact eligibility for the loan amount. Here are benefits of applying early for a loan.
- With fund assurance, you have a better chance of securing admission in your preferred university.
- You will be able to know the exact amount you will have in advance, which helps in making your choice.
- A loan sanction letter is better accepted by foreign universities than a solvency letter.
- You may rest assured that you will be completely prepared when you have to pay the fees and apply for your visa.
You may have dreamt about pursuing a certain course from a specific college. However, the uncertainty of fund availability could mean that you might not be able to pursue your dream. Applying for an education loan before you commence the application process to various universities ensures that you will be able to follow through your ambitions. You will not have to settle for another college because of lack of funds or uncertainty about finances.
When you apply for a loan before securing admission, you will receive a conditional sanction letter. This offers confidence to apply to the best universities without any worries on how to sponsor your higher studies.
In case you do not secure pre-approval, you may have to opt for a personal loan to pay your fees in a timely manner. Such loans have certain advantages, such as no collateral requirement, quick and hassle-free approval, and longer loan tenure. However, the interest rates on personal loans are significantly higher than a student loan. This is because such loans are unsecured financing, which poses a higher risk to the lenders. Therefore, the financial institutions levy a higher rate of interest while sanctioning such loans.
Additional Read: What are Some of the Challenges of Taking an Education Loan?
The constantly rising education costs are causing worries to students who want to pursue higher studies in international universities. However, in the last few years, financial institutions are helping students follow their dreams by granting loans. If you wish to study abroad, it is recommended you seek pre-approval to ensure you do not have to rush at the last minute to raise funds to pay your fees.