Student Loans for Studying Abroad: Many students will have a dream to study abroad but some families can be able to afford it but some of them cannot. But students have many doors to move abroad for their higher studies in that one of the doors is taking an education loan.

And even students know that they can apply for higher studies through education loans, they do not have in-depth knowledge of these student loans for studying abroad. So in this article, we are going to know about the complete details of education loans for studying abroad like benefits, how to get a loan, eligibility criteria, and many more are discussed.

Types of Student Loans For Studying Abroad

If are you interested to study abroad and looking for a student loan then it is very easy to get before knowing all the complete details about student loans for abroad studies you need to know about the different types of loans that we have for studying abroad. Look into them one by one and select the one that is beneficial and suits best for you.

• Bridge Loans
• Pre-Admission Loans
• Refinancing Loans
• Pre-VISA Loans
• Consolidated Loans

How To Choose Education Loans For Studying Abroad

As the education loan will play a major role when you think to study abroad. And when you are choosing an education loan you need to consider some points with any bank that you take an education loan. All of them are provided below, checkout.

• Documents and Eligibility Criteria
• Rate of Interest
• Costs covered
• Tax Benefits
• Prepayment Terms
• Moratorium Period
• Service Charge
• Loan Processing Time
• Total Cost Over EMI

Benefits of Taking an Education Loan For Abroad Study

After the eligibility criteria, another important thing that you need to know is about the benefits that you have of taking an education loan.

• You will get complete financial freedom as the loan covers all the financial expenses that you need.
• It is very easy to repay the education loan as it has many types of payments like part payment, no margin money, and no prepayment charges.
• Taxes and other benefits are covered by both banking norms and government policies.
• Even you will get consolidation of loans and others.
• You will get 100% finance.
• Competitive Interest Rates.

Eligibility Criteria For Education Loan to Study Abroad

When you think to apply education loan to study abroad the first and foremost thing that you need to know is about the eligibility criteria that you need to have to get the loan to study abroad. Below are the conditions that every bank checks before granting an education loan.

• First, a student who is going to take a student loan should have their own nationality.
• If the student is below 18 years, then their parents can take the education loan.
• Applicants should provide banks with an acceptance letter from the educational institution.
• Candidates should have the best academic record at least 50% of marks and him/her should pass the international exams.
• Even candidates should have permits in place.

Documents Required To Apply for Student Loan For Studying Abroad

When you are getting ready to apply for a loan to study abroad, the first thing that you need to do is keep all the documents ready that are required to apply for an education loan. If you are not aware of those documents, you can check out the below list.

• Identification Documents
• Academic Documents
• Financial Documents
• Collateral Documents

Identification Documents (KYC Documents)

Here we are going to provide you with the identification documents that you need to submit to your bank. Make sure that all the documents should be completed KYC.

• Aadhar Card / Voter ID/ Driving License / Passport Copy
• Person of Indian Origin Documents
• Non-Residential Indian Documents
• Residential Proof
• PAN Card

Academic Documents

Look into the list of Academic documents that you need to submit to your bank to get an education loan.

• 10th Class Certificates
• 12th Class Certificates
• Graduation Certificates
• Post Graduate Certificates
• Before the 10th mark sheets if needed.
• Country-Specific Student Status Certificates
• Student VISA Documents
• Immigration Letters
• Australia GTE (Genuine Temporary Entrant) as per SVVF
• USA I-20 Certificate of Eligibility for Nonimmigrant Student Status
• UK (England) CAS (Confirmation of Acceptance for Studies)
• Confirmed Admission Letter
• If you have any Scholarships for foreign education records
• GMAT, ILETS, TOFEL, GRE, SAT Documents

Financial Documents

Have a look at the set of documents list taht you need to provide to your bank in order to process your education loan.

• If you have any job, submit salary proofs like Income Tax Computation Statement, and 3 months’ salary slips.
• Bank Statements of the last 6 months, if possible last 36 months.
• IT Returns Copy Statements of the last 2 years
• GST Returns Copy of last 2 quarters

Collateral Documents

Here is the list of collateral documents that you need to submit if you going with a secured loan. Try to take a secured loan if possible to get a low-interest rate with long tenure.

• DE-mat account statement (min: 12 months, max: 36 months)
• Insurance policy receipt and original policy certificate
• Property tax statements
• Lease Agreement/Property Deed/NOC from society-builder/Allotment Letter by Govt./Municipal Authority
• Original FD/Gold Deposit/RD/Bond certificate
• Certificate of third-party guarantee (with signature and verified by appropriate authority)
• Interest statement of last 6 months
• PAN card, if you don’t have yours, submit Co-applicant mandatory
• Aadhaar Card/ Passport Copy/Driving License/ Voters ID
• Residence proof like rent agreement/residential lease/electricity bill-phone bill/LPG bill
• Property tax statements

Note: All the above documents are provided based on Overall banks requirements, recheck the documents with your bank that are required to apply for the education loan.

Best Loan Provider Banks For Studying Abroad

We are going to provide you with a list of banks in the below table that provides you with education loans for studying abroad easily with secure and low-interest rates. Even not only bank providers but also there are several nonbanking financial institutions that give you education loans but they will have high interest rates and low loan tenure.

If you prefer banks then check out the interest rate, and loan amount for some top banks.

Government Subsidy Schemes For Abroad Education Loan

If you are an Indian, and if you are taking an education loan, then it might be a challenge to take an educational loan to study abroad as a normal family cannot afford it. But, the Indian government’s providing some schemes to unprivileged students.

Using these schemes poor students who have Interested to study abroad can go and study. Have a look at those schemes below.

• Padho Pradesh
• Dr. Ambedkar Central Sector Scheme
• NBCFDC Loan Scheme
• CSIS Subsidy Scheme

Padho Pradesh

Padho Pradesh is an interest subsidy on loans that are provided for economically backward classes only for the students who are aspiring to study for a master’s abroad. 6 lakhs is the limit of family income to apply to this scheme. And students who got selected will get a 100% subsidy.

And the benefit of this subsidy is the complete interest of your education loan for the duration course will be paid by the government through this subsidy.

DR Ambedkar Central Sector Scheme

Normally, the government has introduced this scheme for unprivileged students from the EBC and OBC categories. And if the loan is below Rs.20 lakhs then the government will pay 100% interest wavier through this subsidy. Benefits are the same as the Padho Pradesh subsidy.

NBCFDC Loan Scheme

NBCFDC is nothing but the National Backward Classes Finance & Development Corporation Loan Scheme that was provided by the government of India that provides education loans to the unprivileged students of backward categories. And maximum loan amount that a student gets is Rs. 20 lacks with a 4% interest rate.

If the applicant is female, then the interest rate is only 3.5%.

CSIS ( Central Scheme of Interest Subsidy) Education Loan Scheme

Central Scheme of Interest Subsidy Education Loan Scheme is provided by the Government to people who are economically backward. This scheme not only provides an education loan but also provides you with interest subsidies for a certain period.

Difference Between Secured and Unsecured Loans – Which is Better?

Thinking about what is secured and unsecured loans by looking at the heading. Then dont worry secured is the collateral loan, and unsecured loan is the non collateral loan. Many of you will not know about the difference between these two loans. By knowing the difference only you can able to choose the right one for you.

So, without any delay, have a look at the benefits of both loans and choose one that is suitable for you.

Collateral Education Loan

Collateral Educational Loan is nothing but a secured loan as collateral is nothing but assets that are provided to the bank against the repayment of the loan. If the applicant fails to pay the loan lender will be safe. And these collateral loans are mainly for loans that are in high amounts.

And the benefits and conditions that you have by applying for this collateral loan are

• The rate of Interest will be less.
• Allows a High amount.
• Needs NOC from Society.
• The repayment Period will be longer.
• Parental Income is not necessary for approval
• The approval rate is higher than normal.
• Applicants can offer any collateral like FD, Land, immovable property, policy, and others.

Non-Collateral Education Loan

When it comes to the non-collateral education loan it is the loan that was given directly without any security for the lender. And this education loan is given for small amounts. In this case, the loan will be sanctioned only if the applicant meets the eligibility criteria that we provided above.

And also we will how this non-collateral loan works and whether is there any benefit applying to for this, most people who have no security will apply for this loan.

• The rate of interest will be higher compared to secured loans.
• The repayment period will be shorter.
• Compulsory parental income proof is needed.
• There are fewer chances to get a loan.
• Repayment should be done in the study period itself.
• But it does not require any collateral.
• The loan amount will be approved based on the bank norms, course, and institution.

Know more about non-collateral education loans on How to Get Education Loan for Abroad Studies without Collateral

The loan amount for this collateral and non-collateral educational loan differs from bank to bank so you need to check with the bank when you select the bank. As we have explained about both collateral and non collateral loans, read them carefully and choose the one.

Process of Getting an Education Loan For Study Abroad

Getting an educational loan to study abroad is not an easy thing. It has a lot of procedures to follow and it takes a lot of time. If you are unaware of all that process have a look into the below steps we have given starting from loan application to disbursement.

• Firstly, when you are looking for a loan, you need to check in which college you are thinking to get admission fees according to your rank and check whether that college is registered with banks or not.
• Next, you need to know about where you can get money with low interest and how much moratorium period they are providing.
• Do not stick to one bank, do proper research and compare the banks.
• After finalizing the bank, fill out the application form and keep the documents required ready that are needed according to their requirements.
• Once after approving your loan amount, the bank will give you a loan document, and sign it.
• Then the bank will disburse the loan amount in installments or according to the needs of the university.

As it has so many processes, is the reason we recommend you apply for an education loan to study abroad as early as possible. Even you can know the complete process of applying through How to Apply for Education Loan for Abroad Studies.

What are the Expenses That Are Covered by Education Loan For Study Abroad

Many students know that they can get an education loan to study higher abroad. But they think that they only provide the loan for the institute fee. And they do not know that some of the expenses that are related to education are also covered by this education loan.

So we are going to have a look at those expenses.

• In educational loans, you can pay examination fees, tuition, and admission fee.
• You can even buy stationery, books, and equipment that are related to your course.
• If the student opted for the insurance then even that can be paid through an education loan.
• If the institution has any tours or research instruments that will be covered in the education loan.
• Even airfare will be covered by an education loan to study abroad.

Common Things to Remember While Taking an Education Loan For Abroad

If you are a student who is aspiring to study abroad and looking for an education or student loan then you need to remember certain things. Look below to know those common mistakes taht every student do. Get knowledge about them and you will be safe from those mistakes.

• Normally, when you are taking an education loan, most of the private sector banks only provide you 90% of the loan and you need to bare that 10% by yourself. So when you are checking out the bank for an education loan, check whether the loan margin is 100% or not.
• Before taking the money at the time of disbursement, always calculate the amount they provide because any change in the exchange rate can affect your amount.
• Before taking the loan amount itself, check with the bank about the moratorium period. Because it varies from bank to bank, take a loan from the bank which will last upto some time after completion of your course.

Still, if you would like to know more about Study Abroad Education Loan, you can check out the link.

FAQs on Education Loan For Abroad Studies

1. Do I need to provide collateral for the abroad education loan?

No, it is not necessary to provide collateral for the abroad educational loan as many institutions will not ask for it. But still, if you have a chance of providing residential or commercial property or any fixed deposit, you can happily provide them and get a high amount for low-interest rates.

2. What is the maximum loan amount that you get for studying abroad?

Normally, education loans have no limit as different banks provide different amounts of loans based on their terms and conditions, but most of the banks offer 20- 30 lakhs.

3. Can I get a 100% education loan to study abroad?

Yes, you can get a 100% education loan to study abroad.

4. Can I get a student loan to study abroad?

Yes, you can get a student loan to study abroad as long as you meet the eligibility requirements.

Key Outcomes

Hope that the information we have shared on Student loans for studying abroad is beneficial for you. By studying all the terms and conditions that we have mentioned above, apply for education loans and avail all the benefits that you get. If you like it, share it with your friends who are looking to apply for an education loan.

Do not apply without proper research about education loans to study abroad. If you are looking for other similar articles like What is Education Loan, and How to get an educational loan after 12th, check out our main page Student Education Loan on our official website.

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