Education Loan for Abroad Studies for Indian Students - Guide

Team JagVimal 23 Mar 2023 622 views
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EDUCATION LOAN FOR ABROAD STUDIES:

Although choosing to study abroad might change your life, it's not always an easy choice. For the majority of students, the prospect of studying abroad holds the promise of a fresh perspective on life in a foreign land. However this objective could be beyond the means of certain pupils from low-income households. It is now possible to establish plans for paying your education for those who desire to pursue higher education overseas but are having trouble finding the money. This post will go through every aspect of student loans for international studies. We will also discuss other topics relating to student loans, such as the function of a guarantor or Indian banks providing student loans, in addition to the application procedure, eligibility requirements, and paperwork needed.
For all those seeking an education loan to study abroad, we will cover every element.

EDUCATIONAL LOAN ADVANTAGES:

It's possible that the family's finances won't always be able to support the expense of the student's education. In these situations, requesting a student loan from banks or other financial institutions is necessary (NBFC). To cover all or a portion of your educational costs, you can use a student loan. With a study abroad education loan, a student is ensured that they will have the funds necessary to finish their degree programme without running into any difficulties.In many cases, loans are considered to be bad debt. This phrase means that you are taking out a loan to pay for something that will eventually lose value. The fact that an education loan is an investment in the borrower sets it apart from other types of loans.

ELIGIBILITY REQUIREMENTS FOR BORROWING MONEY FOR EDUCATION:

Checking your eligibility to qualify for an education loan should be your first priority. The standard terms and conditions that are typically followed by any bank when providing an education loan are listed below. Please be aware that each bank may have its own qualifying requirements, which must be followed when applying to that specific bank.

  • The applicant must be a citizen of India.
  • The applicant's parents must take out the loan if the applicant is under the age of 18.
  • The applicant has to have an outstanding academic history.
  • The applicant must have received admission to a respectable college, university, or institution abroad.
  • The applicant's selected course must be technical or professional in character, as banks favour programmes that are focused on obtaining a job.

In order to ensure that only risk-free loans are made accessible, loan providers adopt underwriting rules. These are crucial in determining whether or not to provide a student a study loan for an abroad course of study, as well as how much money the company is willing to loan and at what interest rate.

APPLICATION PROCESS:

The entire loan procedure, from loan application to approval and distribution, takes time, therefore it is always best to apply for a loan a bit early. Applying for a student loan requires the following steps:

  • Verify whether or not the banks accept the course you intend to enrol in.
  • Determine the amount of the loan you need and the amount you will arrange on your own.
  • Evaluate the student loans offered by several banks for studying abroad and choose the one that best suits your requirements.
  • Fill out the loan application form and go to your bank after the bank and the loan amount have been decided.
  • The bank will produce a loan paperwork with all of the loan's components as soon as your loan is authorised.
  • The bank will distribute the money in instalments or as requested by the university once you sign the loan agreement.

DOCUMENTS REQUIRED FOR THE APPLICATION:
The applicant must be fully informed of the documentation needed to apply for a study loan abroad before applying for an education loan. When applying for an education loan for study abroad, the following paperwork is needed:

The applicant must be fully informed of the documentation needed to apply for a study loan abroad before applying for an education loan. When applying for an education loan for study abroad, the following paperwork is needed:

  • Fill out an application
  • Passport-size photos of the applicant and the co-applicant are required.
  • Both the applicant and the co-applicant must present a photo ID. It might be a passport, PAN card, driver's licence, voter ID card, or Aadhar card.
  • Residency evidence Proof of residency for the applicant and co-applicant
  • University-level writing
  • Applicants' transcripts and credentials
  • Score report for the relevant exam, such as the GRE, GMAT, TOEFL, IELTS, etc. (Other crucial factors to take into account when applying for a loan are your overall academic standing and work experience.)
  • The institution or college will provide the admission letter as confirmation of enrollment.
  • Deposit receipts: financial records from the co-last applicant's six months
  • income evidence the co-evidence applicant's of income (A foreign education loan can be obtained depending on a number of variables, including the financial situation, location, and assets of your co-applicant).
  • In the event of collateral (immovable property), which might be an apartment, a house, or non-agricultural land, the following documents are necessary:

          title deed for a property
          plan authorised by the building
          a mortgage NOC from a builder or society

Best Education Loan Companies in India for International Studies:

  • ICICI Bank: The bank provides loans up to Rs 1 crore with an interest rate that starts at 9.50% annually for overseas courses. As extraordinary collateral, new real estate, FDs, and cross-collateralization with existing mortgage loans are all allowed. For undergraduate and graduate programmes, respectively, the ICICI education loan has no collateral cap of Rs 20 lakhs and Rs 40 lakhs.
  • HDFC Bank: One of the biggest private banks providing loans for international education is HDFC Bank. The bank only offers loans up to a limit of INR 20 lakhs. Even before the student has been admitted to the institution, the bank provides study loans overseas to prevent the last-minute rush.
  • State Bank of India: With a lending margin of 15%, SBI would lend up to INR 30 lakhs as an education loan for international studies. On the current SBI base rate, an interest rate of up to 2% is applied to the loan amount. The loan payback period might also range from 1 year to 15 years.

 

Our FAQ's

Top International Education Loan Programs for 2023: The SBI Global Ed-Vantage Program is offered by the State Bank of India. Baroda Scholar Program, The Bank of Baroda. The PNB Udaan Scheme, from The Punjab National Bank. IBA Model Loan Package For Higher Education Abroad: Canara Bank.

approved programmes leading to graduation, postgraduate, and professional degrees offered by accredited institutions and universities accredited by the UGC, government, AICTE, AIBMS, ICMR, and other organisations.

In comparison to private banks & NBFCs, public sector banks give the State Bank or BoB the lowest interest rates on loans for international education. Bank of Baroda offers the most affordable education loan for studying abroad if your university is included in BOB's premium list of universities. The State Bank of India, on the other hand, provides the most affordable student loans. Nevertheless, the amount of the low-cost student loan in India is determined by a number of variables, such as the applicant's profile, the financial situation of the co-applicant, the target nation, the intended field of study, etc.

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