How to Apply for Education Loan for Abroad Studies?: Indian banks are offering education loans to students who want to do abroad studies. The quality of education offered by universities in countries like the USA, Australia, Canada, the UK, Germany and others is unmatchable. So students try for education loans to study abroad.
The following is the list of documents needed to apply for the education loan for abroad studies, eligibility conditions, and the detailed process to apply for an education loan for abroad studies.
Benefits of Education Loan for Abroad Studies
Studying abroad can be a life-changing decision, but it is not easy. As there are few compromises you have to do and arranging funds is also difficult. Don’t worry about financing, as several banks offer education loans for eligible students.
In many cases, the family’s income and other resources are not enough to cover the student’s education expenses. In those cases, banks and other financial organisations like NBFC are helping students. You can use a student loan to pay for all or part of your education expenses. Students who take a study abroad education loan are guaranteed to be able to finish their course without facing any financial issues. Loans are bad debts. This implies that you are borrowing money whose value will diminish over time. An education loan is unique from other loans as it is an investment from the point of the borrower.
Eligibility Conditions for Education Loan
To get eligible for the education loan to study abroad, you need to fulfil the following eligibility criteria:
- The student must be an Indian national.
- If the candidate is under 18 years, then their parents have to take the loan.
- The candidate should have a strong academic score.
- The student must have received an admission letter from a reputed overseas university, institution or college.
- As banks favour courses that are job-oriented, the applicants have to choose technical or professional courses only.
Documents Needed for Applying For Education Loan to Study Abroad
Before applying for an education loan, students have to gather all these mandatory documents.
- Filled application form
- Passport-size photographs of the applicant and co-applicant
- Identity card of the applicant and co-applicant. It can be a PAN card, Aadhar card, voter ID, driving license or passport.
- Resident proof of the applicant and co-applicant.
- Academic certificates:
- All mark sheets and certificates of the applicant.
- Score report of GRE, GMAT, IELTS, TOEFL, etc whichever is applicable.
- Admission letter issued by the university or college.
- Last 6 months’ bank statements of the co-applicant.
- Income proof of the co-applicant.
- In the case of collateral, you need to have a property title deed, building approved plan, and NOC for a mortgage from a builder or society.
How To Get an Education Loan for Abroad?
The quality of education offered by universities in foreign countries is unmatchable and hence students are searching for how to apply for education loan for their abroad studies.
Education Loan for the USA
Top banks in India are giving education loans to the intended students who want to go for higher studies in the USA. Students can get education loan at attractive interest rates. Many banks have designed education loan plans for the USA-going students. You can get both unsecured and secured loans to study in America.
Student Loan for the UK
Indian banks offer education loans for the UK that cover common expenses like living expenses, tuition fees, down payment, travel expenses, and so on. Banks provide up to 1.5 crores, however, you can increase the amount based on your requirements.
Education Loan for Australia
Lenders offer up to 1.5 crore secured education loans and 50 lacks unsecured loan for Australia. Australian universities ask students to pay 1-year tuition fees and show 1c year of living expenses for COW and an immigration letter. You are given all these expenses before the Visa process.
Education Loan for Germany
Germany country has several public universities that offer free education. Even if you don’t need to pay fees, you will have living expenses, admission fees, travel expenses, etc. Depositing 1-year living expenses is the condition to study in Germany. Students have to deposit around 10 lacks as blocked accounts in German banks. You can take a loan for those expenses.
Loan for Canada
Countries like Canada ask students to arrange living expenses and 1-year tuition fees. Which can be around 15 to 20 lakhs. Hence students opt for education loans for abroad studies. Students can get up to 1.5 cr secured loan and 75 lacs unsecured loan from banks.
How to Apply for Education Loan for Abroad Studies?
Actually, the loan is time taking process. So it is better to start the education loan process early. Follow these steps to apply for a student loan for abroad studies.
- Firstly, visit the bank.
- Check whether the course you choose is organized by the banks or not.
- Find how much loan amount you need and how much you are taking a loan.
- Compare the student loan provided by different banks for your course and choose the best one that offers less interest rate.
- After finalizing the loan amount and bank, fill out the application form and approach your bank.
- Submit the needed documents.
- Once the loan is approved, the bank will issue a loan document.
- After signing the loan document, the bank will disburse the amount in instalments to the college.
FAQs on Application Process for Education Loan For Abroad
- Which bank is best for education loan abroad?
The different banks that are offering education loan for abroad studies are here. You can choose the best bank that fulfils your requirements.
- HDFC Bank
- Axis Bank
- ICICI Bank
- State Bank of India
- Punjab National Bank
- Union Bank of India
- How much education loan can I get for abroad?
Students can get around 1.5 crore unsecured education loan for their courses to study abroad.
- Can I get a 100% loan to study abroad?
Yes, you can get a 100% education loan for your higher studies in foreign countries.
- Does an education loan affect a visa?
No, the education loan process doesn’t affect visa.
Summary
Hoping that the details covered here about the application procedure for the education loan to study in abroad are useful for you. You can get more related articles on our site. Bookmark our page to know How to Get Education Loan for abroad Studies without Collateral, Which Bank has the Lowest Interest Rate on Education Loan, and How to Get Education Loan After 12th.