RELEASED DATE 23/03/2020
Bank loans for abroad studies is offered by banks to finance the students attending overseas education programmes. The abroad education loan will cover the tuition fee and living expenses by academic years. Before applying for an overseas education loan, parents should keep in mind the following steps:
Make a clear financial plan
Investing in their children’s overseas education means parents will have to financially stick to their children throughout the course (which may last 2-5 years). For that reason, making a detailed and clear spending plan is critical. In addition to knowing exactly the total costs for the course (including tuition fee, transportation, accommodation and food), parents may need to take account of potential risks, and their ability to repay. So, it is important to consider the offset between their borrowing needs and the family’s financial capability so as not to ‘live beyond your means.’
Borrow from trusted banks
In their effort to provide credit support to young people who wish to study abroad, most of the banks, such as BIDV, VietinBank, Techcombank, etc. have their tailored overseas education loan packages in place with various offers and under ranging conditions. Examine the options and select a credible bank with the conditions which you find the most suitable for your family’s condition. Furthermore, an overseas education loan from a more credible bank with stronger financial potentials may contribute to a higher rate of visa approval.
Research the banks’ policies of overseas education loan
Attractive overseas education loan packages are offered by many banks, for they are from such a meaningful programme targeting talents while supporting their families financially. Let’s highlight several banks in Vietnam who are offering the most reasonable overseas education loans currently:
- BIDV is offering an overseas education loan package for up to 80% of the total costs, loan tenure up to 10 years and interest rate of only 7.5% p.a.
- VietinBank is offering the loan amount up to 80% of the total costs and 100% of the amount needed as a proof of financial support. They allow the loan tenure up to 120 months with 7.7% p.a.
- Techcombank offers loans up to 85% of the total course costs. With loan tenures ranging from 3 to 120 months, the interest rates are from 10.99% p.a.
Another issue to be concerned about by parents is the principle loan repayment term, which can be paid off only after a certain period of time, when their child has graduated, found a job and been able to cover some repayment responsibility. Some banks offer a grace period accordingly, i.e. BIDV is allowing up to 5 years; VietinBank allowing up to 6 months, etc.
Abroad education does not only go along with fresh cultural experiences but also brings about attractive career opportunities after graduation. Should our young citizen be confident enough of their educational pursuit and inclusion ability, as well as willing to seek opportunities, the families may prove their financial and repayment capabilities, and the bank will have their backs, financially. Abroad education loan is definitely a helpful tool for families to open up a better educational future for the sake of their children.