Studying abroad is an amazing experience but can be quite heavy on your pockets. Scholarships and grants are available but are highly competitive and rarely cover your entire expenses. A loan can cover up to your school’s complete cost of attendance, excluding any other aid you’ve received. Here is a list of top international student loans that will cover your study abroad cost.
This Blog Includes:
- What Does It Mean by Education Loan for Study Abroad?
- Advantages of Education Loan
- What are the Different Types of Education Loans?
- Student Loan for International Students in France
- International Student Loan Without SSN
- International Student Loan Norway
- Hong Kong International Student Loan
- International Student Loans in Italy
- Required Documents
- How to Apply for International Student Loans?
- Important Things to Remember While Obtaining an Education Loan
What Does It Mean by Education Loan for Study Abroad?
The education loan is designed specifically for students who have plans to complete their higher education abroad but don’t have the necessary funds to pay for the tuition fees as well as other expenses. Apart from the tuition fees, the education loan can also cover living expenses. supplies, books, and other fees that you might encounter while living and studying overseas.
The interest rate charged on the education loan amount will depend on numerous factors such as the bank you’re choosing, the specific education loan you’re choosing, the amount you have plans to obtain, and your university. The repayment period will also depend on various factors.
Advantages of Education Loan
This is one f the most important things you need to remember about the education loan. Sometimes neither the savings nor the family income will prove sufficient at funding the overall education loan. In such situations, education loans will undoubtedly prove beneficial for students who have plans to complete their higher education abroad. With the help of an education loan, you will be able to complete your education without facing any financial problems.
Many people think that taking a loan is like creating bad debt. However, keep in mind that when you take an education loan, you will be investing in yourself. This way you will get a job and pay your education loan back.
What are the Different Types of Education Loans?
There are two different types of education loans that you need to keep in mind. This way you will be able to prevent applying for the improper one.
In this specific type of education loan, the borrower will promise some specific assets of their in exchange for the education loan. When you choose a secured loan, you might need to mortgage your property to the financial company as well as the bank. But keep in mind that you cannot mortgage your agricultural land.
Also Read: All About Education Loans for Students
When you choose unsecured loans, you don’t need to secure the amount against any type of asset. Numerous financial institutions might provide you with unsecured loans as per different marketing packages. You also need to fulfil some specific contributions to receive an unsecured loan.
Student Loan for International Students in France
The high-quality education and inexpensive tuition fees of French universities are the key reasons why so many international students select France as their study destination. In 2018, over 325,000 international students choose France as their study destination. Here are some international student loans with collateral for France:
|Lender||Amount||Processing Fee||Payment During Study Period|
|State Bank of India, BOB||Up to INR 1 Crore||INR 11,800||No Payment|
|Axis Bank||Up to INR 60 Lakhs||Up to INR 17,500 + GST||Simple Interest|
|Avanse, Incred||Up to INR 50 Lakhs||1-2% of the loan amount||Simple Interest|
Here are some international education loans for students without collateral for France:
|Lender||Amount||Processing Fee||Payment During Study Period|
|State Bank of India, BOB||Up to INR 7.5 Lakhs||NIL||No Payment|
|Axis Bank||For selected universities up to INR 40 Lakhs, rest up to INR 7.5 Lakhs||Up to INR 20 Lakhs: INR 15,000/- (refundable). More than INR 20 Lakhs: INR 750 on every lakh above 20 Lakhs||Simple Interest|
|Avanse, Incred||Up to INR 40 Lakhs||1-2% of the loan amount||Yes, full EMI Repayment|
Also Read: TATA Capital Education Loan
International Student Loan Without SSN
If you want to know more about international student loans without SSNs, make sure you read the following points.
International Student Loan Norway
The Norwegian State Educational Loan Fund issues student loans in Norway (Lanekassen). There is no interest charged until the student graduates. The fundamental requirement for receiving Lanekassen assistance is that you are a Norwegian citizen. Foreign citizens, however, are also eligible for financial support.
If you are a student in Norway and are a foreign citizen with legal residence, you may be eligible for financial aid if you meet one of the following criteria:
- Copy of the document from the Norwegian Directorate of Immigration (UDI) that you have been granted protection i.e Asylum in Norway
- Copy of the decision from the Norwegian Directorate of Immigration (UDI) for special humanitarian considerations or particular attachment to the country
- Marriage certificate if you are married to a Norwegian citizen
- Right of residency as a family member or EEA citizen
- Copy of a valid residence permit
- Grade transcript or diploma for education you have completed in Norway
Hong Kong International Student Loan
Hong Kong students studying abroad are mainly self-funded or supported by family, or they may receive fee waivers or discounts from their university, as well as scholarships or awards.
However, in many instances, these earnings are insufficient to meet all expenses. International study loan understands that many students require additional support and provides loans to Hong Kongese students to assist in their educational pursuits.
Below are the eligibility criteria for international students if they are applying to Canadian or American universities:
- Students must attend an eligible school in the USA or Canada
- Must be enrolled as an undergraduate or graduate student and pursue a degree, certificate, or license
- Students need to apply for consigner
- The consigner must be a US citizen or permanent resident, with good credit and who has lived in the USA for at least 2 years
International Student Loans in Italy
There is two educational study loan for international students available:
- Unsecured Education Loans
- Secured Education Loans
Education loans that require collateral are known as secured education loans. As a result, if you apply for a with-collateral education loan, you must hold an asset as a mortgage until the loan is fully repaid. A fixed deposit or an immovable property can be used as collateral.
|Lender||Amount||Interest Rate||Processing Fee||Payment During Study Period|
|State Bank of India, BOB||Up to INR 1.5 Crore||8% – 9%||INR 11,800 + Property Evaluation Charges||No Payment|
|Axis Bank||Up to INR 60 Lakhs||11% – 13%||1-2% of the loan amount||Simple Interest|
|Avanse, Incred||Up to INR 40 Lakhs||12% – 14%||1-2% of the loan amount||Yes, full EMI Repayment|
Unsecured education loans are ones for which the borrower will not be required to provide any form of collateral. Unsecured school loans are simple to obtain, but they come with high processing costs and interest rates.
|Lender||Amount||Interest Rate Range||Processing Fee||Payment During Study Period|
|Axis Bank, ICICI||Up to INR 40 Lakhs(Only for a few universities)||11.5% – 13%||INR 750 on each lakh above INR 20 lakh||20 years|
|Avanse, Incred||Up to INR 40 Lakhs(Dependent on co-applicant income)||12% – 14%||1-2% of the loan amount||10 years|
Also Read: Education Loan for Germany
Here is the list of documents that you need to submit while obtaining an education loan:
- KYC documents
- Application form
- Passport photos
- Academic transcripts
- Birth certificate
- Income proof
- Residence proof
- Collateral documents
- University acceptance letter
How to Apply for International Student Loans?
Step 1: Check the eligibility: Start applying for the international student loan and use the loan comparison tool if any on the page. After that, it will show you if any companies are able to lend to a student in your position
Step 2: Application: You can then proceed with your application if you have been matched with a lender. Even if you are not a US citizen, the application process is quick. You must submit all required documentation and paperwork to the loan firm, which will determine whether or not you are authorised.
Step 3: Documentation: Following are the documents you must provide to the lender
- ID Proof
- Proof of Residence
- Academic Records
- Valid Passport & Visa
- Proof of admission to your university
- Extra-curricular certificates if appropriate
Step 4: Approval: You will be advised of the interest rates (fixed or variable rate) and repayment terms once your application has been conditionally approved. Your loan application will be authorised and funds will be disbursed if you agree to the terms. This takes about 6 weeks as usual.
Important Things to Remember While Obtaining an Education Loan
While applying for an education loan for your higher education purposes, here are a couple of important things you need to keep in mind:
- Loan margin
- Moratorium period
- Effect of exchange rate
Yes, you can get a 100% loan to study abroad, but it depends on the eligibility and academic score of a student.
ICIC Bank Campus Account.
PNB Student Savings Account.
Steps to Open Punjab National Bank Savings Account.
HDFC Zero Balance Account.
HDFC DigiSave Youth Account.
Students can apply for education loans from the Central Bank of India with interest rates as low as 6.85% to pursue their studies both domestically and overseas. Also, the bank provides discounts to female students.
This was a list of Top International Student Loans! If you are someone looking forward to pursuing your career abroad, sign up for the free career counselling session at 1800 57 2000 and gain an opportunity to talk to our Study abroad mentors at Leverage edu