Borrowing an abroad education loan is one of the most crucial phases of the higher education process. Getting accepted into the university of your choice and getting to travel abroad are some of the most crucial and primary steps in the process of realizing your dreams.

Most students who plan on traveling abroad for their higher education are under the impression that an overseas education loan sanction is one of the last phases of the process of obtaining an abroad education loan. However, this is not true. The following episode of Loanflix Inshorts will help you understand this concept well.

The borrower’s presence is required for a number of other formalities while availing a student loan abroad, even after they have traveled abroad.

So what are some of the tasks that all candidates need to complete in order to ensure a continuous flow of their education loan for abroad studies?

This article aims to list three crucial tasks that the abroad education loan applicant must do before they fly to their study destination.

Power of Attorney

Handing over the power of attorney to your co-applicant or the nearest family member is one of the most important steps that ensures that the process of your education loan abroad goes smoothly, even after you have left the country for your course. 

  • By assigning someone to be the power of attorney to the co-applicant, you are handing them over the authority to undertake any pending task in the student loan process, so that you can continue with your course without any hassle.
  • There have been several instances when students who had applied for a higher education loan for abroad studies faced problems and were asked to come back to their home country, just so they could sign the loan papers.
  • So, handing over the power of attorney to one of your parents or close family members is very crucial, especially if you are flying abroad before the loan agreement is signed. 

Opening a Bank Account

  • It is important to open a bank account with your lending bank for the purpose of transferring your student loan for abroad studies if your course starts before the loan is sanctioned.
  • Candidates are required to inform their lending banks regarding their early travel plans and open a joint account with their co-applicant, in order to have an easy sanction process for their student loan abroad.

If you are facing any trouble in getting your lending bank to open the respective bank account, get in touch with WeMakeScholars. Our financial team can fast-track the entire process of foreign education loans by coordinating with the lending bank.

Mortgage Creation

  • Mortgage creation (deposit of title deeds, namely original ownership documents, like sale deed/gift deed/partition deed, etc., and link documents)  is an essential part of any higher studies education loan process that involves collateral security.
  • The agreement for a student loan for abroad studies cannot be made unless and until the mortgage creation phase is completed.
  • If you have borrowed a secured education loan to fund your higher education abroad, it is extremely crucial to ensure that the mortgage creation phase of your student loan for abroad is completed successfully. 

Common Mistakes Students Make Before Traveling Abroad

Students who want to start their education abroad fail to notice essential financial procedures that are important for their studies. Few of the common mistakes that students make before travelling abroad are:

  • Students who start their studies abroad without proper authorization of a Power of Attorney and incomplete mortgage applications, and joint account setup will encounter major problems in the future. 
  • Students have encountered situations that forced their parents or guardians to travel across long distances to resolve these problems after their departure.
  • Students need to plan ahead and talk to their lender early to prevent these types of errors. Your study abroad experience will remain uninterrupted when you finish these essential financial tasks before leaving for your international education.

Why Apply Through WeMakeScholars?

  • The points mentioned above are some of the most crucial steps involved in the process of availing a student loan for abroad studies.
  • When students are unaware of the entire process and approach lenders/banks individually, it is highly likely that their assigned loan officer may fail to inform applicants about the importance of the above-mentioned steps in the student loan for abroad studies process. 
  • When students approach WeMakeScholars with their concerns, our financial team tries to understand their plight and consults with the lending banks to relieve students of their concerns. Students who have already traveled to their destination without fulfilling these requirements can also approach our team for help. We will be glad to be of help!
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Conclusion

Students must complete their essential financial tasks before leaving to ensure a smooth study abroad experience. The Power of Attorney process, along with setting up a bank account and handling mortgage documentation, allows your education loan process to continue without interruptions. Your academic success abroad becomes possible when you handle these responsibilities at the beginning because they prevent any financial disruptions.