Education Loans for Study Abroad
Education Loan for Abroad Studies: Studying abroad can be a life-changing decision, however, this doesn’t come easy. Those who want to pursue higher studies abroad, but finding it difficult to arrange for funds, now have the option to make arrangements for funding their education. In this article, we will cover each and every detail related to education be it the process to apply for a loan, eligibility or documents required for it. We will also cover various other aspects related to student loans like the Indian banks giving student loans or the role of a guarantor. We will cover each and every aspect for all those who are looking for an education loan for study abroad.
Eligibility criteria to apply for the education loan
The first and foremost thing is to check whether you are eligible to apply for education loan or not. Below provided is the usual criteria which Indian banks follow for checking the eligibility of the loan applicant is:
- The applicant should be a citizen of India.
- The applicant must have attained the age of 18 else his/her parents will have to take the loan.
- The applicant must have a good academic background.
- The applicant must have secured admission to a recognized foreign university/institution/college.
- The desired course which the applicant is going to study must be a technical or professional one, as banks give preference to job oriented courses.
What all documents required for applying for Education Loan for Study Abroad?
Before applying for an education loan, the applicant must be completely aware of the documents required to apply for a study loan for abroad. Following documents are required to apply for an education loan for abroad studies:
- Filled application form
- Photographs: Passport size photographs of the applicant and the co-applicant.
- Photo ID: Photo ID of the applicant and the co-applicant. It can be a PAN card, driving license, Voter ID card, Aadhar Card, or Passport.
- Residence proof: Resident proof of the applicant and the co-applicant
- Academic documents:
o Mark sheet and certificates of the applicant
o Mark sheet (Score Report) of IELTS/TOEFL etc. whichever is applicable
- Admission proof: Admission letter shared by the university or college.
- Bank statements: Last six months bank statements of the co-applicant
- Income proof: Income proof of the co-applicant
- In case of collateral (immovable property), it can be flat, home, or non-agriculture land the following documents are required:
o Property title deed
o Building approved plan
o NOC for a mortgage from builder or society
What is the procedure for getting an education loan for Studying Abroad?
From loan application to approval and disbursement, the entire loan process is time taking, so it is always advisable to apply for a loan a little early. Follow these steps for applying for a student loan:
- Check the course in which you are going to study is recognized by the banks or not.
- Figure out how much loan amount you require and how much you are going to arrange on your own.
- Compare the student loan provided by all banks for studying abroad and go for the one which caters best to your needs.
- After finalizing the bank and the loan amount, fill out the application form for loan and approach your bank.
- As soon as your loan is approved, the bank will issue a loan document that includes various elements of the loan.
- After signing the loan document, the bank will disburse the amount in installments or as asked by the university.
Top Education Loans Providers in India for Studying Abroad
HDFC Bank is one of the largest private banks offering education loans abroad. The maximum loan amount offered by the bank it up to INR 20 lakhs. In order to avoid the last-minute rush, the bank offers study loans abroad even before the student has secured admission at the university.
State Bank of India
SBI offers a maximum amount of INR 30 lakhs as an education loan for studying abroad with a loan margin of 15%. The Interest rate charged on the loan amount is up to 2% on the current base rate of SBI. Further, the loan repayment tenure can be 1 year to 15 years.
Axis bank offers study loans abroad at competitive interest rates. A margin of 15% has to be arranged by the borrower if the loan amount exceeds INR 4 lakhs. The bank offers a maximum of INR 20 lakhs and covers different costs like tuition, accommodation, and books.
Punjab National Bank
PNB Udaan is the education loan scheme offered by the Punjab National Bank to students going to study abroad. The bank offers foreign education loans for students going to pursue graduate, post-graduate, job-oriented professional and technical courses. The borrower needs to show a loan margin of 15% for the loan amount of above INR 4 lakhs. Also, the bank offers the base rate as the interest rate on loans taken for pursuing an education at the top 200 universities across the world.