I'm planning to go overseas to study for a year. What's stopping me is lack of money. 0% loans are not available for overseas unis. Could anyone advise on how I could get a loan with low interest rate. Student loan if possible.
"Monthly-Rest (also known as monthly-reducing)
When you pay an instalment, the amount comprises:
a payment for the interest charge, and
a payment towards the principal (the loan amount).
Monthly-rest means that the principal amount you pay every month is deducted when calculating the interest rate for the following months. Interest is thus computed on the principal outstanding at the start of each month."
So, if you (depending on the loan agreement with the lender) make pre-payment to reduce the principal amount (i.e. when you receive bonus), you could pay less interest and shorten the loan repayment duration. But of course lenders will have lock-in periods stated in the loan agreement and will charge you a certain amount/percentage if you fully settle / make pre-payments before a certain number of months/years.