Student fee financing and study abroad loans indeed become the bridge to your dreams. However these dreams have a repayment tenure.
Education is a means for you to enlighten your mind, yet it also has to put food on your plate at some point and repay the loan that you have taken.
Once you graduate your journey of making your loan repayments begins. Don't be stressed. You can do it.
Paying it back is prudent and builds a very good credit score for your future borrowing, since you will eventually take new loans to buy a bike, a car, a house and other consumer durables.
We at Creditap require you to think of loan repayment at the earliest.
Here is how you can start repaying.
- Parents will pay part of the loan, you repay the rest: there are many loans which allow parents to begin repaying part of the loan, so by the time you finish your degree and get a job your parents will pass on the repayment to you. In this case your father or mother is the co-applicant and you become the primary payer once you get a job.
- Part time jobs: if you are up to it then get a part time job abroad. Start working 20 hours a week, when classes are in session, and 40 hours a week, when classes are not in session, which gives you enough money to save as a lump sum to pay the interest and the principal. This gives you enough savings to pay up on your loan after two years. You can easily save up to Rs 7.50 lakhs per year just with a 20 hour work week.
- Getting a job after your studies: Remember to take a loan on the basis of your belief that you will be able to repay the loan after your education. Within three to six months of completing the course you will be asked to begin paying the loan. The average salary abroad can range from $75000 to $150,000 per year if you are in technology and $50,000 if you are in the arts.
With this salary you can repay your loan in under three years. In India the average salary for an engineer is Rs 5 lakhs per year as a starting package. If you have taken a loan for a course that costs Rs 30 lakhs then you must set aside a large portion of your loan for repayment in India.
- Refinancing of the loan: Did you know that you can, after a year of paying your loan, refinance your loan with another bank, the interest rates will be cheaper and the payment and foreclosure terms will be better. Creditap can help you with it and do call us for the same.
- Getting a job if you come back to India and repaying: If you are back to India then your salary will be around $30000 to $50000 as an engineer or more. If you are coming back with a management degree then the salary would have to start from $20000 to $30000. If you are paying a Rs 70 lakhs loan then you have to keep aside at least $10000 every year or Rs 12 lakhs to repay your loan and pay back with interest in ten years.
- Nothing like a parent and a student putting resources together: Remember that studying abroad is expensive. It's better that both parents and students work together in order to pay the loans back. Once the loan kicks in after you find a job, please set aside Rs 12 lakhs a year from your earnings (depending on the size of the loan) to pay back the burden. In most cases parents repay the loan.
- Taking help, is there recourse: The only way that this process will end is in your bank acquiring your parental property or your property. There is no shame in this, yet it is an emotional decision.
Every year there are more than 250,000 students that go abroad. Around 95 percent of the students take a loan, so why stop yourself, come over to Creditap and we shall help you with a loan that is tailor made for your purpose.