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Education Loans for Study Abroad
Even though it can change your life, choosing to study abroad is not always simple. Most students associate studying abroad with the prospect of gaining new experiences in a foreign land. However, this objective can be out of reach for students from low-income families.
There is now a way for people who desire to pursue higher education abroad but are having trouble finding the money to do so. We will go through every aspect of student loans for international studies in this article. whether it be the eligibility requirements, the loan application process, or the paperwork needed. We will also discuss a number of additional topics relating to student loans, such as the role of a guarantor.
Also read : Education Abroad Terms | Common Terms Related to Education Abroad
Advantages of education Loans for Study Abroad
Occasionally, the family's money and resources might not be enough to pay for the student's education. For a student loan in such circumstances, banks or other financial institutions must be contacted (NBFC). A student loan can be used to cover all or a portion of your educational costs.
A student who obtains a study abroad education loan is ensured that they will have enough money to finish their degree programme without running into any financial difficulties. Many people view loans as terrible debt. This phrase implies that you are taking out a loan for something whose value will eventually decline. Since it is an investment in the borrower, an education loan differs from other types of loans. You will eventually make far more money from this than you lent.
Top Education Loan Providers in India
| Name of bank | Loan Amount | Student loan interest rates per annum |
| State Bank of India | Up to 1.5 crores | 10.5% |
| Allahabad Bank | 50 lakhs | 7.15% to 10.5% |
| Axis Bank | 40 lakhs and beyond depending on requirement | Upto 4 lakhs- 15.2% Upto 7.5 lakhs- 14.7% Above 7.5 lakhs- 13.7% |
| HDFC | Upto 30 lakhs | 14% |
| Credila | No limit. Depends on requirement | 12.10%+ floating rate(depends on the risks points of the applicant) |
| Punjab N ational Bank (PNB) | Based on requirement | Upto 7.5 lakhs- 11.25% Above 7.5 lakhs- 11.85% for education at premier foreign universities- 9.85% |
| IDBI Bank | Depends on requirement | Upto 40 lakhs- 8.4% Above 75 lakhs-8.75% |
| Indian Overseas Bank (IOB) | Upto 40 lakhs | As per bank's discretion |
| Bank of Baroda | 1,50,00,000 | 8.50-9.15% |
| Avanse Financial Services | No limit. Depends on requirement | 11.5%+ floating rate(depends on the risks points of the applicant) |
| Syndicate Bank | up to 40 lakhs | 6.90 to 8.80% |
| Canara Bank | up to 40 lakhs | 6.90 to 8.80% |
Also read : How to Study abroad after 12th?
Documents Required for education Loan to Study Abroad
| Document type | Applicant | Co-applicant |
| Date of Birth | Birth Certificate, Passport, Voter card with DOB, College Passing Certificate, PAN Card, Driving license, Aadhaar Card | |
| Residence Proof (if owned) | Electricity Bill, Municipal Tax Receipt, Share Certificate, or Title Deed (with Flat No.) | |
| Residence Proof (for a rented property) | Registered Rent agreement (with utility bill), Landline phone bill, Post Paid Mobile Bill, Bank statement., Passport, Driving License, Voter ID, and Aadhaar card | |
| Aadhaar | Aadhaar card | |
| PAN Card | Copy of PAN / Form 60 if PAN is not available | |
| Signature | Signature verification from the bank, Passport, Driving License, and PAN Card (all IDs should match with your current signature) | |
| Relationship proof | Passport, Pan, Aadhaar card, Marriage certificate, Birth certificate, Legal heir certificate, Ration card, or any other acceptable documents | |
| Academic documents | 10th,12th, UG or PG mark sheets, degree or provisional degree certificate, and applicable entrance test scores | Registration certificates for Professionals (CA, Doctor) |
| Income proof - Salaried | Documents to establish 3 years of work experience where ever applicable and available | Latest 3 salary slips, Bank Statement of last 3 months, Form 16, Self-employed: 2 years ITR with the statement of income, Income certificate from Tehsil/collector's office |
| Office Address | NA | Form 16/ Salary slip/ Letter from HR/ Snapshot of site/Identity card |
| Admission proof | Invite/admission letter from University/college and Fee structure | NA |
Also read : Cheapest Countries for Indian students to study abroad
Technical Documentation Required for education Loan to Study Abroad
To avail student education loan to study abroad, a student must have other technical documentation mentioned as follows which is apart from the above documentation:
- Title deed: All pages need to be attached
- Copy of approved layout plan and permissions, this is specific and is on case to case basis
- Revenue document (Khata / Patta)
- Allotment Letter and NOC for BDA allotment
- Non Encumbrance certificate
- In case the apartment/flat is taken from a builder, a possession certificate is required
- Recent Property tax receipt
- Copy of Prior Sale deeds
- Conversion certificate
- Urban Clearance Certificate. This is also case-specific.
Legal Documentation Required for Education Loan to Study Abroad
Other than the standard and technical documentation a student also requires the following legal documentation to apply for education loan for study abroad:
- Sale /gift/partition deed in favour of customer – This should be for a minimum of 13 years
- Khata Certificate and extract in the name of the current owner
- Encumbrance certificate – Minimum 13 years reflecting all sale transactions
- Latest Property tax receipt
- Crowd Funded Companies as Loan Providers in India
Crowd Funded Companies as Loan Providers in India
The support of students is a focus for several businesses. To preserve security, these companies only provide loans to students enrolled in specific colleges. They offer loans in the country's local currency where the student will be enrolled in school. Returning the borrowed funds in the same currency is required.
| Institution Providing loan | Amount of Loan | Eligibility |
| MPower Financing | US $2001 - $ 100,000 |
|
| Avanse Financial Services | INR 10 Lacs – INR 75 Lacs |
|
| Spoctree | INR 8-15 lacs |
|
| Varthana | Up to INR 5 Lacs |
|
Also read : Study Abroad Scholarships
Things to Consider Before Applying for an Education loan to study Abroad
- Moratorium Period: The time during which the borrower is not required to pay back any money to the lender is called the moratorium period. This time varies for bank to bank and could be for a certain time period from the completion of the course.
- Loan Margin: Generally, banks do not give out the complete education loan, that is, they do not give 100 percent amount of the education loan. Most of the public sector banks issue 90 percent of the total education loan amount and the remaining 10 percent is to be managed by the student.
- Exchange Rate Effect: As a student you should always check the amount you will receive while disbursement because exchange rate can effect this amount.
Also read : Statement of Purpose | How to Write | Format
Eligibility for Student Loan in India
Checking your eligibility to qualify for an education loan should be your top priority. The standard terms and conditions that are typically followed by any bank when granting 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 needs to have an outstanding academic history.
- The applicant must have received admission to a respectable college, university, or institution abroad.
- The applicant's chosen course must be technical or professional in character because banks prefer courses that are employment-oriented.
- Underwriting norms are the guidelines established by lenders to ensure that only risk-free loans are made available. They are also significant since they are used to decide how much money the company is willing to loan and at what interest rate, as well as whether or not to offer a person a study loan for an overseas course of study.
After going through this blog, you will be able to select, find your eligibility and apply for an education loan if you are considering studying abroad. This will assist in making your journey of going overseas easier. It will be a smooth sailing now onwards, especially when your financial needs have been met.
Also read : Letter of Recommendation (LOR) for USA: Guidelines for UG & PG Courses, Writing Tips & Requirements
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