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Have an INR student loan in the US? 6 reasons to refinance your foreign currency loan

Prodigy Finance - January 25, 2019

Refinance INR loan

You left your home country to pursue your postgraduate school at one of the US’s top schools. Now you find yourself living in the US, building up international work experience and establishing yourself as a young professional.

The problem is you’re still burdened with your Indian Rupee (INR), Euro (EUR) or Pound (GBP) education loan. For many international working professionals, paying off a foreign student loan doesn’t make sense. Your salary is in USD, you want to start building your American credit history and you’re thousands of kilometres away from your lender.

The good news? This can all change. Refinancing your GBP, EUR and INR student loan will be possible with cross-border lenders like Prodigy Finance.

If you plan to stay in the US for a few years after graduation, you might want to consider if refinancing your education makes sense for you. We’re unpacking some of the benefits of refinancing your foreign-currency student loan.

When should you refinance your GBP, EUR or INR student loan?

1. You want to remove the burden from your family

When you took out your GBP, EUR or INR student loan, there’s a good chance you were required to bring on a co-signer. This financial burden on your parents or other family members may have been necessary at the time but there is a way to relieve the stress. 

The financial independence that came with your graduation can continue into your education loan by finding a lender to refinance your loan and release your co-signer.

2. You have more than one student loan

There’s the chance you needed to take out multiple student loans to cover the cost of your studies and your living expenses. To make matters more complicated, some may be based in India and others in the US. 

The result? 

You’ll need to make multiple payments, made to different loan providers, in different currencies at different times in the month. Refinancing your loans means you can consolidate all your education loans into one, simplifying your payments. 

3. You’re paying FX fees and you’re worried about currency fluctuations

If you have a EUR, GBP or INR student loan in the US, you’ll have to pay FX fees to convert your dollars to rupees. There is always a commission for this transfer - sometimes up to 5%. 

Refinancing your loan and getting a new loan in USD means you’ll avoid that monthly FX fee by having a loan in the currency of your salary. Additionally, you can also avoid the monthly currency fluctuations and save yourself the worry.

4. You’re looking for a lender that is easy to contact

Your foreign-currency loan means your lender is on the other side of the world. Getting in touch to sort out problems or payments can be tough. 

When you refinance your loan with a cross-border lender, you give yourself the option to choose a provider that is in close geographic proximity or that operates entirely online like Prodigy Finance. 

5. You want a rate that matches your job

When you applied for your first student loan your profile was entirely different. Now you’ve got your degree and a new job - you’re ready to get a better rate. Refinancing gives you the option to trade in the old rate for a better one. 

Want more? By choosing the right provider you may also be able to get:

  • More flexible loan terms (think anywhere from 7 to 20 years).
  • A provider who allows you make early repayments without penalties.

6. You want to build your credit history in the USA

You’re starting your new life in the US. Have you considered the importance of your credit history

Whether you want to take out a personal loan, find a mortgage or get a credit card your US bank will check your credit score. They need to make sure you’re reliable when it comes to repayments. A strong credit score will influence their decision, and can even get you better interest rates in the future.

Loans from India, the UK or France can’t help you develop your US credit history. You’ll need to refinance with an international lender like Prodigy Finance, who work with local credit bureaus to ensure your student loan works towards building your US credit history.

Did you find yourself agreeing with any of these factors?

Maybe it’s time you looked into refinance.

Prodigy Finance Ltd is authorised and regulated by the Financial Conduct Authority.

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