Going abroad for higher education? But don’t know how to fund your studies? Don’t worry. This post covers all about how to get an education loan to study abroad.
Education loans help students fund their education in foreign countries irrespective of their financial status and fulfill their dreams of getting a quality education. Unfortunately, the cost of studying in a top-tier country and in a reputed university/college restraints a lot of students. Various banks and financial institutions lend education loans and study abroad scholarships for Indian students on different loan schemes. However, choosing the right one can make your task easier. This loan can be from INR 50,000 to INR 50 Lakhs, depending on your age, income, credit score, and type of job.
How to apply for an education loan to study abroad?
Follow these steps to apply for a loan to fund your studies in a foreign nation –
Research, Research, Research
Get all the information you can about the various education loans, which are of two types – Secured Education Loans and Unsecured Education Loans. Know the difference between education loans and which is better for you.
Secured Education Loan required you to provide any collateral like FD, Insurance Policy, or an immovable property against the loan offered. This type also has a lower interest rate, longer repayment duration, parental income is not necessary, a higher loan and you don’t have to pay during your study period.
The Unsecured Education Loan does not require you to offer any collateral. The interest rates are high, it is a more risky proposition for the bank, parental income is needed, some repayment has to be done while you’re studying, and comparatively, it has a shorter repayment period.
2. Check Eligibility
The criteria for every education loan are different. The requirements for getting a study abroad loan are –
- The candidate must be Indian.
- They must be 18 years old. If they are under 18, his/her parents will have to get the loan.
- The candidate should have an excellent academic background.
- The candidate must be accepted to a well-known university/college abroad.
- Banks prefer courses that are job-oriented, therefore, the candidate must choose a technical or professional course.
3. Get professional help
The process of getting a loan for abroad studies can be complicated. For that, you need a professional and trustworthy consultant. Nationwide Visas is one of the best Study abroad consultants in Delhi who have helped thousands of students get education loans and scholarships to study in foreign countries.
4. Select a lender and apply
The top education loan providers in India to study abroad include HDFC Bank, ICICI Bank, State Bank of India, Axis Bank, and Punjab National Bank. Some non-financial banking companies offering study abroad loans include Credila, Avanse, International Student Loan Program (ISLP), and Global Student Loan Corporation (GSLC).
5. Get the document checklist
Before you submit your education loan application, organize all the essential documents required to apply. Note that each bank has its own set of documents required to apply for an education loan for abroad studies:
- Properly filled application form
- Passport-size photos of the applicant and co-applicant
- Photo Identity of the applicant and co-applicant like PAN Card, Voter Id Card, Aadhar Card, Passport, or driving license.
- Proof of residence of the applicant and the co-applicant
- Academic documents
- Proof of admission shared by the college or university
- Bank statements of the last 6 months of the co-applicant
- Proof of income of the co-applicant
- In the case of collateral – property title deed, building approved plan, NOC for a mortgage from the builder of society, and so on.
- Income tax assessment order which should not be more than 2 years old
6. Online Submission of Documents
Now that you have collected the documents, submit them online, the processing will take 45 days to 2 months.
Loan coverage and the benefits
The education loan to study abroad covers your tuition fees, accommodation, uniforms, travel cost, laptops or computers, books, and more. A few banks also offer one-way travel tickets from India to wherever you are flying to study. You can apply for an education loan under programs like medicine, management, business, engineering, etc. Also, the Indian government has set up subsidized interest rates for students who belong to marginalized or financially weaker sections.
Nationwide Visas with 16+ years of experience in the immigration process can help you get the education loan to study abroad. From helping you choose the best option to filing your application, Nationwide Visas is your go-to stop for all immigration-related services. So what are you waiting for? Contact today.