Student Loan for Overseas Education

Financing Your International Education

Nowadays going abroad for studies is considered as a life-changing decision for Indian students, also the experience is worth it but for some students studying abroad is very expensive. As you all know with an increasing rise in the opportunities globally, more and more Indian students are looking to study overseas in top-ranking universities. Therefore, now we have various options for students who find it difficult to take education abroad due to high tuition fees, the standard of living, etc. There are two options available for students who are planning to study abroad, one is either you can opt for study abroad scholarships or you can go for study abroad loans. This means that these educational loans for study abroad will be provided by various banks, government funds, finance supporting organizations, etc., can remove your barriers to study abroad.

Types of Study Abroad Loans

Studying abroad can be a transformative experience, opening doors to global perspectives and personal growth. However, the costs associated with international education can be substantial, often requiring students to seek financial assistance beyond traditional scholarships and grants. This is where study abroad loans come into play, offering a variety of financial solutions to help make your educational dreams a reality. 

Federal Student Loans: You need to apply for these loans only when you are in need because these are need-based loans that can be applied through finance providing the university’s office and all you need to do is finish some necessary paperwork like FAFSA.

Private Loans: Students can apply for private study abroad loans for up to the amount they need and if in the future they have a leftover amount, then they can return it back to the fund providers, hence, you will be free from excess interest payment in the future.

General Loans: The only variance between study abroad student loan and general student loan is the type of payment, application, qualifications, and timetable. Also, these two loans are being treated differently by loan providers regarding their procedure, hence, it is significant for students to figure out every detail from banks or loan institutions before applying for a study abroad education loan.

Bridge Loans: Pre-application fees such as exams, interviews, applications, and student tours are all paid through bridge education loans to study abroad. These kinds of loans for study abroad for students just required proof of educational background & request to foreign institutions permitted by the bank from international students.

Prior Visa Loans: Preceding Visa, Education Loans for Study Abroad are given on the principles of conditional offer letters from financial institutions to continue with the student VISA application procedure. This is necessary before the student visa application process because in certain countries, students are required to verify that they have adequate funds available to proceed with their education.

Prior Admission Loans: Apart from education loans for study abroad and academic expenses, there are also such expenditures that require funds like in-flight charges, traveling abroad tariffs, and admission fees are known as pre-admission loans.

Combined Loans: Consolidated education loans for study abroad encompass all facets of education, incorporating accommodation, books, travel, stationery, deposits, insurance, and other essential study prerequisites.

Points to Remember

• Procurement of education loans for study abroad by students can be done in these courses such as medicine, engineering courses, science, architecture, arts, hotel management, etc.
• Borrowers are expected to take a margin of 5% to 15% for loans applied for studying overseas.
• You can pay the education loan in monthly installments by ECS or by means of Post-dated cheques to your bank.
• The advantage for the weaker section of the society students planning to study abroad is that the Central Government has presented an interest rate subsidy scheme for repayments done at the time of the moratorium period.
• The maximum amount of Rs. 20lacs will be sanctioned by the banks.
• Duration of the loan in a minimum of 5 years and a maximum of 25 years.

Eligibility Criteria for Education Loan: Study Abroad

• It is necessary for a student to be an Indian national to opt for an education loan, including candidates of PIOs and NRIs are also involved.
• You should have an acceptance letter provided by loan institutions.
• It is significant to have a visa and work permits in place, also student must pass the requisite international entrance exams.
• Applicants must be able to show financial viability for reimbursement of education loans for study abroad.

Top Education Loan Givers in India

When it comes to pursuing higher education and achieving your academic aspirations, financial support is often a crucial factor. In India, several institutions are dedicated to easing the financial burden on students by offering education loans. These top education loan providers understand the value of education and are committed to helping students access quality learning without worrying about funding.

Application for Study Abroad Loan: When it comes to funding your education abroad, applying for Education Loans for Study Abroad is a crucial step. This process ensures that you have the necessary financial resources to cover tuition fees, living expenses, and other related costs.

Documents required for study abroad loan

When applying for a study abroad loan, there are several important documents that you will need to provide to the lending institution. These documents are crucial in assessing your eligibility and determining the terms of your loan. The required documents may vary depending on the lender and the country you plan to study in, but generally, they include:

• Passport size photographs
• Admission letter
• Examination results like GMAT, TOEFL, IELTS
• Marksheets of previous universities and schools
• Financial documents
• Collateral papers
• Identity proof

Procedure to apply

• First, start with finding the course which you want to study as it is recognized by the banks.
• Find out the total loan amount that will be required.
• Compare various banks and financial aid providing institutions for studying abroad.
• Then students have to fill the loan application form and proceed towards their bank.
• After the fulfillment of your loan approval, a loan document will be issued by your bank.
• The document must be signed by students, which will allow the bank to disburse the amount in installments as per the norms of the university.

For more assistance please visit us study abroad consultancy.