Pursuing higher education abroad can be a life-changing decision for most of you, however, this doesn’t come easy. Pursuing a full-time course from foreign universities comes with an exorbitant load of finances. Sometimes students find it difficult to arrange for funds to fulfil their educational expense. In this blog, we will cover every aspect of student loan and how to get an education loan along with eligibility criteria and documents required for the same.
This Blog Includes:
Types of Loans
Education loan is taken by students to provide a range of services and continue their education with the least financial load. Before you move on to figure out how to get the education loan, take a look at some of the common types of education loans to study abroad:
- Bridge Loans: This pays for students’ pre-application expenses like application, examination, interview and student tours.
- Pre-Visa Loans: These are used as proof of funds availability for abroad loans and that students will not become a liability for the host nation for both accommodation and fees.
- Pre-admission Loans: This includes not only academic expenses but also, in-flight and overseas travel expenses and cost of admission processes before the commencement of the higher studies.
- Refinancing Loans: These can be taken to repay the loans taken before and students can also choose to refinance to extend their loan tenure.
- Consolidated Loans: It covers a combined set of educational expenses including exam, tuition, books, educational equipment, travel, accommodation, deposits and insurance.
The process to get a loan is generally more tedious than the domestic one. Even though different banks may have their own set of requirements but some conditions remain the same for all courses. Based on the pattern followed by most of the banks, we have curated a list of eligibility standards:
- Applicants have to be a citizen of India. PIOs and NRIs can also apply for study loans in India.
- Acceptance/offer letter by the university or college that the student is going to join.
- Candidates should have their student VISA in place at the time of loan application.
- Applicants should also show financial viability to repay the study loan.
Apart from meeting the eligibility criteria, students must also know the documents required for education loan. Knowing about what is required to apply for a study loan to study abroad, beforehand, is a smart move that can save a lot of your time later.
The question ‘how to get an education loan’ actually indicates that the person wants to know the procedure for the same. Let’s take a look at these:
- Select the bank and the loan scheme you want to take.
- After confirming both the things, contact the bank to confirm documents required to avail the loan facility.
- After the submission of documents, the bank will evaluate your profile and sanction your loan accordingly.
While sanctioning loans to students planning to study abroad, banks usually check the kind of degree students are planning to pursue. Usually, courses which offer a good ROI like Engineering, Management or MBBS are preferred by banks for sanctioning loan. Here are some degrees and specialisations for which the education loans are easily provided:
|Degree Levels||Undergraduate, Postgraduate, Doctoral and Diploma Courses|
|Courses||Computer Science Engineering, Mechanical Engineering, MBA, MBBA and other Engineering courses|
Top Education Loan Providers in India
Even though there are many student loan providers in the Indian market that offer varied options to students, some banks stand out by providing the best facilities. A few of such banks are enlisted below.
- PNB Education Loan
- Syndicate Bank Education Loan
- Vijaya Bank Education Loan
- ICICI Education Loan
- IDBI Education Loan
- Bank of Baroda Education Loan
- Canara Bank Study Loan
- HDFC Education Loan
- Allahabad Bank Study Loan
Collateral for Education Loans
Another important aspect of getting a loan is the ‘collateral’, which are assets or guarantees that are to be submitted to the bank in exchange for the loan amount. Collaterals are not mandatory for smaller amount of loans but essential to get a higher amount of loans.
Also Read: Education Loan without Collateral
We hope that all your queries pertaining to the question on how to get an education loan for studying abroad are solved through this blog. If you require more extensive abroad admission support, like choosing the right university, identifying the suitable loan and creating the perfect application to target your dream universities, our counsellors at Leverage Edu can help you.