Know about Education Loan for Study Abroad, the Gateway to Global Education
Students looking for global exposure and the best learning opportunities are increasingly choosing to pursue their higher education abroad. However, funding such goals could be challenging, and it often calls for careful financial preparation. From tuition fees to traveling, the expenses can burden any family and student.
An education loan for abroad studies, in these situations, allows students and aspirants to cover the extensive expenses associated with studies. This student loan allows students to go to renowned institutions abroad and complete their dreams. It does so while taking all the worries of covering the cost of education.
Discover the interest rates, eligibility, documents, and how to get an education loan for study abroad.
What are the Types of Education Loans for Abroad Studies in India?
There are 2 types of education loans for abroad studies you can avail to pursue education in a foreign country.
Secured Loan for Abroad Studies
If you have a security to pledge, you can apply and avail a secured education loan for study abroad. Here is what you need to know about a secured student loan:
- It requires the borrower to provide any collateral that the loan is issued against. These collaterals include real estate, a savings account, an insurance policy, etc.
- A secured student loan offers a reduced interest rate.
- Government and Public banks in India often offer these student loans.
- If you have collateral to pledge, there is a good possibility of approval.
- It offers an extended payback duration that eases the repayment for the students.
- The student loan offers a higher amount, which you can opt to increase.
- It offers a moratorium or grace period, which ensures no payback when you're studying.
- Approval is granted without regard to parental income.
Unsecured Loan for Abroad Studies
Here is what you must know about an unsecured student loan:
- To be eligible for this student loan, the borrower does not have to provide any collateral.
- This loan type is a riskier prospect for the bank, making it more difficult to get a loan from them without collateral.
- It has a greater interest rate compared to a secured loan, often by 1.5% to 4%.
- It offers a shorter time frame for repayment.
- You have to pay a portion of the loan during the study term.
- To get approved, parental income must be provided.
Features of Education Loan for Abroad Studies
Whether public banks or NBFCs,' every lender offers its own set of benefits and features. Before applying for an education loan from any of these lenders, you must consider all these features:
Eligibility Criteria for Education Loan for Study Abroad
While eligibility requirements could differ between banks and lenders, students must fulfill a few eligibility criteria in order to be considered for one. The eligibility criteria for education loans for study abroad are as follows:
- Indian Citizen: A student applying for a student loan to study abroad needs to be an Indian citizen.
- Admission: Students must have secured admission to the university or institution through entrance tests or merit.
- Admission Letter: The candidate ought to have obtained and received the admissions letter from an accredited university or institution.
- Recognized Institution: The university or the institution ought to be acknowledged by the UGC, AICTE, government, etc.
- UG/PG Program: The candidate has to have chosen a full-time UG/PG course of study.
- Co-applicant: A co-applicant (parent, guardian, spouse, parent-in-law, siblings, or first cousin) is required for the candidate who is willing to undertake full-time courses.
- Academic Performance: Applicants must have at least 50% marks in the last qualifying exam.
Interest Rates of Different Banks for Education Loan Abroad
Here are the interest rates offered by different lenders for education loans:
Documents that are Necessary for Education Loan for Abroad Studies
Once you have ensured your eligibility, you will next have to gather all the documents. The list of documents that you will need to submit may differ from lender to lender. Here is a general list of documents that you will need to submit for education loan for study abroad:
Top Lenders for an Education Loan for Abroad Studies
Here is a thorough comparison of some of the top lenders providing study abroad loans based on the types of lender:
Types of Lenders that Provide Education Loan for Studying Abroad
When wanting to study in a foreign country, students can apply for education loans from different lenders. Here is a list of types of lenders that provide education loans in India:
- Government and Public Banks: There are numerous government and private bank loan schemes you can avail of to fund your education abroad.
- Private Banks: Conventional financial institutions that specialize in private banking provide education loans to students studying overseas.
- NBFCs: Non-banking Financial Companies are financial organizations that function without a banking license but provide a range of student loan schemes to those provided by regular banks.
- International Lenders: Financial organizations situated outside of India also provide international education loans for students studying abroad.
Top Public Banks Offering Study Abroad Loan
Education loan for abroad studies in SBI and UBI offer better benefits and features. This includes:
Top Private Banks Offering Study Abroad Loan
Here are the top private banks that offer study abroad loan:
Top NBFCs Offering Study Abroad Loan
Following are the top NBFCs in India that offer education loan for abroad studies
Get an Education Loan for Abroad Studies with Propelld
Many students find it complex and difficult to apply for education loan for abroad studies. The loan application process is always exposed to errors that can lead to unsuccessful outcomes. Propelld makes the whole process seamless and successful for you. Follow these steps to apply for student loan for abroad study:
- Check Your Eligibility: Propelld's education loan consultant will get in touch with you and assist you in learning everything there is to know about overseas student loans. You will receive a complete document checklist from the counselor as well.
- Login Into Propelld: Create an account and then log into your Propelld account.
- Upload Your Documents: Gather all the documents that are guided by the Propelld counselor and then upload them digitally into the secure platform.
- Await Approval: The counselor will handle the process from here and guide you through it at every step. After verification, the counselor negotiates for a better student loan amount and term.
- Loan Approval and Disbursement: Following document verification, you will get a letter of loan approval along with an agreement that you must sign. The approved student loan amount will be credited to your provided account.
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