Finance is a huge part of an Indian student’s study abroad application journey as the tuition fees and living expenses are much higher than in India. Student loans to study abroad are a great aid for Indian students as they enable students to pursue their dreams of overseas education. Yet, very few students know the basic student loan eligibility that is important irrespective of the country or university that you apply to. Let’s know them in detail through this blog!
This Blog Includes:
- Eligibility Criteria to Apply for Education Loans
- Documents Required for Education Loan in India
- Procedure for Getting an Education Loan
- Top Education Loan Providers in India
- How to Improve Chances of Getting a Student Loan to Study Abroad?
- Fly Finance
- Things to Remember While Taking an Education Loan
Also Read: Education Loan in the USA for International Students
|Age||Minimum- 18 and Maximum- 35|
|Academic Qualifications||Good academic record in 10th, 12th and graduation (if applicable)|
|University Application||Accepted with a conditional or unconditional offer by a foreign university|
|Co-Applicant||Parent, spouse or parent-in-law|
|Collateral Security||Land, house, Mutual Funds, Fixed Deposits, etc|
Eligibility Criteria to Apply for Education Loans
Before applying for an education loan the first crucial step is to check if you are eligible for a student loan. Here are a few common requirements you should check off your list before applying for an education loan.
Citizenship and Age Requirements
The bare minimum and most important student loan eligibilities are the citizenship and age requirements. You must be a citizen of India and a minimum of 18 years of age and a maximum of 35 years of age to apply for a student loan in India to study abroad. If you are not 18 years of age, your parents will have to apply for a student loan.
If you want to apply for a student loan, you should have a good academic record right from your high school. Banks approve student loans of those candidates who have shown great academic achievements in their 10th, 12th and graduation. If you have a good academic record, the loan amount sanctioned to you will also meet your expectations. There is no minimum grade or percentage requirement imposed as student loan eligibility by the banks or education loan schemes.
Also Read: Standard Chartered Education Loan
Another basic student loan eligibility is your university application status. You must be accepted in one of the top-ranking universities abroad or any recognized foreign university. This is a mandatory requirement for all Indian students who want to apply for a student loan. An offer letter with your acceptance from the university is required.
Also Read: 5 things to keep in mind to apply for an Education Loan
A co-applicant is the person who is responsible for your student loan if you, as a student who is the main applicant, fail to repay the student loan. Your parents, guardians, spouses, and parent-in-law (if married) can become your co-applicant to fulfill this student loan eligibility.
Also Read: What is CIBIL Score?
A student loan or any loan is granted against collateral security. Such education loans are known as secured student loans. Basically, if your expected loan amount exceeds INR 7 or 7.5 lakhs, you must provide collateral security. Types of collateral security that you can pledge or give against the student loan are-
- Immovable property or assets like non-agricultural land, house, etc
- Intangible assets like mutual funds, fixed deposits, life insurance policies, etc
- Immovable assets or property of the third party (friends, relatives, etc)
Apart from the three types, the last one is very rarely accepted depending upon the student loan scheme. With collateral security, you can get a loan amount of INR 10.5 lakhs to INR 1.5 crores.
Documents Required for Education Loan in India
Documents to be submitted by a student who is applying for a student loan-
- Proof of Identity- PAN Card, AADHAAR Card, or Voters ID
- Proof of Residence- The electricity bill, water bill, LPG/gas pipe bills
- Valid Passport (not expired)
- All academic transcripts- 10th and 12th mark sheets and passing certificates, semester-wise mark sheet if already graduated
- Entrance Exam results (IELTS, TOEFL, GMAT, or GRE)
- Offer Letter- Conditional or Unconditional from the university abroad that has accepted you
- A statement expressing your estimated cost of studying and living expenses
- 2 passport size photos
- Previous Loan A/C statement if taken any
Apart from this, you have to attach your bank statements along with co-application details to your student loan application.
Procedure for Getting an Education Loan
In order to process your application for an education loan swiftly, you can either refer to Leverage Finance, who will guide you through your entire loan application, or follow the following steps.
- First and foremost, research the course for which you are interested in applying
- Also, figure out the exact tuition fees you are required to pay for that course
- Compare the various type of student loans you can apply for and choose the one which covers your tuition fees in the maximum amount
- After choosing the suitable education loan, fill up the application form with accurate details
- The bank will contact with you all the further details as soon as your loan gets approved
- After you sign the final liability form the bank will discourse your loan to your account
Top Education Loan Providers in India
Here are a few popular loan providers in India that you can start with while researching for your education loan.
- HDFC Bank
- State Bank of India
- Axis Bank
- Punjab National Bank
- International Student Loan Program (ISLP)
- Global Student Loan Corporation (GSLC)
How to Improve Chances of Getting a Student Loan to Study Abroad?
Apart from the above student loan eligibility, you can decide whether you have a good chance at getting the student loan amount that you need. If your chances look a little odd, you can improve your chances of getting a student loan to study abroad with any of the following-
- Scoring high grades in your qualifying exams- IELTS/TOEFL/GMAT/entrance exams
- Being accepted into a highly reputed-university abroad
- Showing strong financial background of co-applicant
- Showcasing a good future for yourself with overseas education
While these don’t form the basic student eligibility that decides whether you get the student loan or not, they are important factors a bank considers.
There are scores of student loan schemes out there waiting for you to apply! With such lucrative offers on the interest rate and collateral, you often get confused on which to apply to and what information you should look out for. Well, what if there is one stop where you have a dedicated loan expert helping you throughout the student loan process? Yes, that’s Fly Finance!
With Leverage Finance, you can compare loan schemes from multiple top loan providers with the best interest rates at ZERO service fees!
Things to Remember While Taking an Education Loan
Here are a few important pointers you should keep in mind before you decide to apply for an education loan for your studies abroad.
- Moratorium period – This refers to the time duration for which you as a borrower are not required to start paying your repayment.
- Loan Margin – Usually student loans are not liable to pay your complete tuition fees. Although most banks give away 90% coverage for the fees, the other 10% is required to be arranged separately by the candidate.
- Effects of Exchange Rates – Before applying for the loan, always check the currency exchange rate of the country you will be visiting for your studies abroad.
If you are planning to finance your studies abroad through an education loan and need expert consultancy regarding the overtly complicated process, contact Leverage Edu at 1800-572-000.