We recently had a chat with Neeraj Saxena, the Chief Executive Officer of Avanse Financial Services to discuss the common mistakes that students make while applying for an education loan to study abroad.
Neeraj Saxena feels that students just generally do not plan their finances well. He says there are a lot of instances where they apply for a loan for a certain amount, but have it downsized completely because their financial requirement maybe for only half of what they are applying for.
In certain other instances, Neeraj Saxena tells us, students end up applying for loans that are much less than the amount they actually require. Students then are forced to come back in another six to eight months to enhance their loan amount. This is why he feels that students do not plan their loan amount well in advance- like they ought to.
He goes on to tell us that he finds that students do not really explore the option of scholarships
on offer. He unveils that if students apply for scholarships well in advance, they can save up well. Many educational institutions offer scholarships, which students should have a look at before admissions if possible.
Lastly, he says loan rejections are a possibility where the financial institution may feel that repayment can be an issue for the student due to a certain few factors. For example, Neeraj explains that- an average academic student looking to gain admission in an average educational institution with poor placement potential maybe assessed as a risk factor and might be denied the loan. He also points out that even in the case of a brilliant student looking to get into a college with week placement potential would be a bad match for a good loan. In this case, he says they would try to counsel the student to make him or her understand that their chance of getting a loan in this case is very poor. The student will have to make the right decision in this case to get the loan amount they desire.