Start with the written terms
An initial quote can help you explore options. The written offer is what lets you compare the details. Keep the loan amount, currency, course duration and likely release dates the same in your comparison, then note every assumption that differs.
For retail term loans covered by RBI’s rules, the lender must provide a Key Facts Statement before the contract. It sets out the key terms, APR and repayment information. APR includes interest and applicable charges; it is useful for comparing the cost of credit. Read the actual statement, including separately disclosed charges. RBI guidance on Key Facts Statements
Eight things to compare
| Check | Ask each lender |
|---|---|
| Amount and currency | How much is sanctioned, what can it pay for and what contribution must my family make? |
| Interest and resets | Is the rate fixed or floating? If it changes, which benchmark, spread and reset rules apply? |
| APR and fees | What is the APR? List processing, insurance, legal, valuation and other applicable costs without counting a cost twice. |
| During study | What must I pay while studying? How is unpaid interest calculated and added to the loan? |
| Repayment | When does repayment begin, what is the repayment period and what do the instalments assume? |
| Collateral and coapplicant | Who takes on obligations and what security must be provided? |
| Disbursal | What conditions must be met for each release? Can payment arrive before the university deadline? |
| Changes and early repayment | What happens if the course changes, the visa is refused or I repay early? Ask for the relevant written terms. |
Keep a separate list of costs outside the loan, such as the university deposit or travel you must fund before disbursal. Ask when each cost falls due. This prevents a loan that looks sufficient on paper from leaving a temporary cash shortfall.
Does a moratorium mean no interest?
No. A repayment holiday does not automatically mean interest is waived. For example, SBI’s Global Ed Vantage page says simple interest is charged during the course and moratorium, with accrued interest added to principal for repayment. Your own offer may work differently. SBI’s repayment and moratorium terms
Illustrative example: if ₹10 lakh is fully outstanding for two years at 10% simple annual interest and you pay none of that interest, the interest for that period is ₹2 lakh. If all of it is then added to principal, repayment would begin on ₹12 lakh. This is an arithmetic example, not a lender quote; staged releases, interest payments and different contract terms change the result.
Build your comparison sheet
| Item to copy from the written offer | Offer A | Offer B |
|---|---|---|
| Loan amount and currency | Record here | Record here |
| APR and quoted rate | Record here | Record here |
| Fees and upfront family contribution | Record here | Record here |
| Interest paid during study | Record here | Record here |
| Balance when repayment starts | Record here | Record here |
| Instalment amount and repayment period | Record here | Record here |
| First release date and conditions | Record here | Record here |
| Questions still unanswered | Record here | Record here |
Print this page and fill the sheet beside your two written offers. A lower monthly instalment can reflect a longer repayment period, so also compare total payments and the time you will remain in debt. If either rate is floating, ask for an illustration of how a higher rate could affect instalments or the repayment period.
Bring the unresolved questions to your lender or counsellor. Do not compare an indicative quote with a final offer as if both are equally certain.
Before accepting an offer
Nexthara can help you organise the questions and understand the application steps. The lender decides the terms and eligibility. If you are still collecting your paperwork, start with the education loan document checklist.
Questions students ask
Is the lowest interest rate always the cheapest offer?
Not necessarily. Fees, the outstanding balance, time before repayment and repayment duration also affect the total cost. Compare written terms for the same assumptions.
Can I use this worksheet for a foreign currency loan?
Yes, record the currency clearly. Also consider the currency in which you expect to earn and the cost of converting money. Do not assume today’s exchange rate will hold throughout repayment.
Does Nexthara choose the lender for me?
Nexthara helps you discuss options and application requirements. You decide whether to accept an offer after reading the lender’s terms.
A clear next step
Make it personal.
Talk through your course, budget and questions with Nexthara in Kozhikode, Kerala.
Talk to NextharaThis guide provides general preparation information. Lenders, universities and authorities set their own requirements. Follow the linked official sources for your application. Suggest a correction.