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 an 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.
The first and foremost thing is to check whether you are eligible to apply for an 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
- 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
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
- 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
Top Education Loans Providers in India for Studying Abroad
HDFC Bank
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.
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.
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
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.
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.
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.
Study Abroad Education Loan from NBFCs (Non-banking financial companies)
Apart from the nationalized banks, student loans can also be availed from non-banking financial companies/institutions (NBFCs). Non-banking institutions offer complete tuition fees to the students. Borrowers need to provide collateral as security to the banks as the loan amount is generally more than INR 7.5 Lacs. Students looking for education loan for abroad studies can now have the option to secure a loan from NBFCs. Some of the NBFCs options are:
- Credila: Credila is part of the renowned HDFC bank and provides loans to Indian students wishing to study abroad. The loans are given at a competitive floating rate of interest and can be repaid within a period of 10 years.
- Avanse: Part of the DHFL group, it is considered as one of the most popular non-banking financial institutions in India. Student loans from Avanse cover tuition fees up to 100% and other expenses. Apart from this, the interest rates are floating and the processing fee can go up to 1 to 2 percent of the loan amount.
- International Student Loan Program (ISLP): This program is specially designed for international students who want to study in the US. Through this program, students can borrow an amount as little as $1500 and can extend the repayment period up to 25 years. The loan disbursed under this program covers tuition fees and other expenses.
- Global Student Loan Corporation (GSLC): The GSLC offers loans to international students to pursue their higher studies in the US without the requirement of any co-signer.
For any information call 999 333 6778
Apart from the nationalized banks, student loans can also be availed from non-banking financial companies/institutions (NBFCs). Non-banking institutions offer complete tuition fees to the students. Borrowers need to provide collateral as security to the banks as the loan amount is generally more than INR 7.5 Lacs. Students looking for education loan for abroad studies can now have the option to secure a loan from NBFCs. Some of the NBFCs options are:
- Credila: Credila is part of the renowned HDFC bank and provides loans to Indian students wishing to study abroad. The loans are given at a competitive floating rate of interest and can be repaid within a period of 10 years.
- Avanse: Part of the DHFL group, it is considered as one of the most popular non-banking financial institutions in India. Student loans from Avanse cover tuition fees up to 100% and other expenses. Apart from this, the interest rates are floating and the processing fee can go up to 1 to 2 percent of the loan amount.
- International Student Loan Program (ISLP): This program is specially designed for international students who want to study in the US. Through this program, students can borrow an amount as little as $1500 and can extend the repayment period up to 25 years. The loan disbursed under this program covers tuition fees and other expenses.
- Global Student Loan Corporation (GSLC): The GSLC offers loans to international students to pursue their higher studies in the US without the requirement of any co-signer.
For any information call 999 333 6778
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