India is ranked third amongst countries whose students are pursuing their education abroad. Every year over 150,000 students pursue various undergraduate, postgraduate courses abroad. Among various perks; practical learning and global exposure attract many students to overseas education. Studying abroad comes with great concerns related to the cost of studying abroad. Available Scholarships have various limitations which leave Education loans an easier way to study abroad and pursue their degree in their desired university. Let’s check on various conditions and available loans to study abroad.
According to the growing trend of studying abroad, there are various countries for pursuing higher education. The cost of studying abroad can go up to 15-25 lakh rupees per year. The cost of studying abroad can depend upon the country, the courses, duration, and living in the country. Banks are offering educational loans to students to pursue their dream. The study abroad market is flayed by 12% every year. Students coping up with the financial burden can rely on banks which can provide them with easy loans to study abroad. Banks offer loans to study abroad based on the needs of the students and their capabilities to afford that loan.
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Important Points to Note
There are various things that you should keep in mind before applying for loans to study abroad:
- The money which has been taken from the banks is supposed to be returned with a marginally increased interest of 10-15%.
- Education loans to study abroad exceeding 6.6 lakhs requires some documents of determined property for assurance and collateral reasons.
- For some banks, there is a period of relaxation where students can start paying back the amount after they begin their employment.
- The co- applicant’s financial statements are required to be submitted along with the loan application for a better understanding of their financial background.
- The amount of loan which was applied can vary with the amount of loan received. Check all your details very carefully before applying.
- The most crucial part of the loan procedure is to check your KYC. It helps the bank having an assurance of faith in the customer.
Loans to Study Abroad- Term and Conditions
- Educational loans are provided under the tag “Study Abroad” which includes various countries. A loan could be applied even before deciding to go further with the respective country for pursuing higher education. The final loan procedure will be designed according to the need of the student, the course, country.
- The loan which is sanctioned is provided in Indian Currency INR and is mandatory to be repaid in Indian Currency only.
- The loan depends on the factors like the duration of the course, grace period after the loan, the capability of the co-applicants, and future aspects of the study procedure.
- Some Banks often credit the tuition fee directly to colleges/universities or through a service mediator. The tuition fee is always given in installments considering the requirement of the college.
Loan Coverage and Benefits
Costs that are covered in the loan are tuition fees, extra expenses like hostel, uniforms, travel expenses, equipment (laptop or computer), books, library expenses. Some banks also provide one-way travel tickets from India to their respective country. Students can apply for education loans to study abroad for various programs like business, management, medicine, engineering courses. The government of India has come up with subsidized interest rates for students coming from marginalized and economically weak class.
Must Read – Education Loan without Collateral
While applying for student loans, applicants must check whether they are eligible to apply.
- Applicants applying for loans to study abroad are required to be Indian citizens, with a minimum of 18 years of age.
- Co-applicants are required to hold an account in Indian banks.
- Applicants are required to submit confirmation from the college/university before the sanction or approval of the loan.
- Co-applicants are required to have a stable financial condition to support the loan.
- The financial stability of the co-applicants is the most important criteria for the approval of the loans to study abroad.
- Applying for loans to study abroad, choosing the right university to pursue a suitable course is a long and exhausting procedure. You have to make sure that you make the right decision for your life. We at Leverage Edu help you make better decisions. We provide the best guidance and support and help you reach your goal.
The following are the banks that provide educational loans for students to study abroad. Students must read through the amount offered, interest rate, repayment tenure, and collateral security to choose which loan suits their needs.
- State Bank of India
- Axis Bank
- HDFC Bank
- Bank of Baroda
- Allahabad Bank
- Punjab National Bank
- IDBI Bank
- Canara Bank
- ICICI Bank
Apart from various banks, many institutions and non-banking services also provide student loans to study abroad. The following are a few popular loans offered by non-banking financial institutions.
- Avanse Financial Services: Avanse study loan can be taken by students with a minimum loan amount of Rs 1 Lakh and can be maximized accordingly. Being one of the most reliable student loans, it offers pre-admission loans, pre-visa disbursement loans, fast-track loans, and also covers pre-admission costs such as application fees, tests fees, or consultation fees.
- HDFC Credila: HDFC Credila offers student loans for over 35 countries. Applicants can customize their EMI options along with flexible repayments. Credila Education Loan amount begins from a minimum of Rs. 1 Lakh and can extend up to a maximum of Rs 40 Lakhs.
- Global Student Loan Corporation (GSLC): The GSLC offers student loans for people who want to pursue higher education in the US. the loan majorly depends on the borrower’s ability and a U.S based co-signer for sharing responsibility. The loan covers 100% fees amount, transportation, accommodation computer/laptop expenses, and miscellaneous educational costs.
- International Student Loan Program (ISLP): The ISLP also offers student loans for studying in the US. students can receive a minimum loan of Rs. 10,95,532 which can be repaid during the tenure of up to 25 years. The loan amount mostly covers university tuition fees, health insurance, living, and miscellaneous expenses.
Applying for loans to study abroad and choosing the right university to pursue a suitable course is a critical and strenuous procedure. To make sure that you make the right decision for your life, our expert mentors at Leverage Edu help you make better decisions and provide the best guidance and support and help you reach your goal. Sign up for a free session today!