Loan insights - USD vs INR

Educational loans can be availed in INR or USD! Below are some distinguishing factors between them

USD:
- Since the amount is in US Dollars, there are no conversion fees
- Foreign lenders offers loan amounts without collateral or co-signer(some may require). Loan sanctions entirely depend on the student's academic profile and the college he has got admission in
- You can build up a good credit score by paying monthly installments on time while studying
- The entire process of Foreign lenders is generally online and hassle free

INR:
- You will be responsible to pay the conversion charges from INR to USD. Some organizations add this conversion charges to loan amount while some others may require you to pay on the spot
- If your co-applicant can avail tax benefits by showing education loan under section 80E
- Rate of interest is quite high as compared to international lenders for non collateral loans ( approx 10–11% annually)
- You will be earning in USD and paying back in INR. By the previous trend of the rising prices of US$ to INR conversion rates, it may be beneficial to go for the loan amount in INR even though it may come with a higher interest rate

Irrespective of above factors, Rate of interest is the crucial factor. Even a 1% increase in the education loan interest rate has a substantial financial effect. In addition, pay special attention to any hidden charges.

Hope this helps!

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