Studying abroad offers an invaluable experience, but the financial hurdles can be daunting. The cost of tuition, living expenses, travel, and more can quickly add up, making education loans essential for many students.
Elan Loans have become a popular choice among Indian students due to their flexible terms and competitive interest rates. This guide will walk you through everything you need to know about Elan Loans for study abroad loan requirements, including eligibility, the application process, and repayment options.
By the end of this blog, you will know
- Elan Loans offers both secured and unsecured loan options for study abroad, catering to a variety of financial profiles and needs.
- Secured loans start at 9.15%, while unsecured loans begin at 10%, offering lower rates than those of other private lenders.
- Elan simplifies the application process with minimal documentation and quicker processing times, making it faster than traditional bank loans.
- Repayment can extend up to 15 years, with a 6-month moratorium period following course completion before payments begin.
- Ensure you compare multiple lenders, factor in all expenses, double-check documents, and understand interest terms to avoid delays and rejections.
Why Consider Elan Loans for Study Abroad?
Elan Loans stand out in the crowded market of study abroad loans for several reasons:
Flexible Loan Amounts
Whether you need a loan for bachelor's, master's, or even diploma courses abroad, Elan Loans caters to all your financial needs. They offer both secured and unsecured loans.
Competitive Interest Rates
Elan Loans offers lower interest rates compared to many private lenders and NBFCs. For secured loans, rates can start as low as 9.15%, depending on the collateral and university.
Easy Processing
Elan's application process is structured to save you time and reduce stress. You don't have to deal with excessive paperwork, and approval timelines are generally quicker than with traditional banks.
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Interest Rates and Repayment Options for Elan Loans
The interest rate for secured loans typically starts at 9.15% and can be lower depending on the collateral and the university's ranking. Whereas, unsecured loans usually carry higher interest rates, starting from 10% due to the higher risk involved.
Here are some key repayment terms you must keep in mind:
Moratorium Period
The moratorium period extends for the duration of your course plus 6 months after completion. This allows you time to settle and find a job before you start repaying.
Repayment Tenure
The repayment tenure for Elan loans can extend up to 15 years, offering flexibility and ease of repayment once you start working.
Prepayment Options
Elan allows early loan repayment without penalty, so you can clear the loan faster if your financial situation improves.
Next, let's take a closer look at how to qualify and apply.
Eligibility Criteria for Elan Loans for Study Abroad
Before applying for an Elan Loan, it's crucial to understand the eligibility requirements. These criteria are designed to assess your academic profile, financial stability, and potential to repay the loan.
Here's a breakdown of what you need to know:
Secured Education Loans
Unsecured Education Loans
1. Secured Education Loans (Collateral-Based Loans)
Secured loans, in which you pledge assets (such as property or fixed deposits) to the lender, typically offer lower interest rates and larger loan amounts. However, the eligibility criteria are stricter:
- You must provide valuable assets, such as residential/commercial property or fixed deposits.
- Your property must be legally owned, with clear title deeds, tax receipts, and a property valuation.
- The co-applicant (typically a parent) should have a CIBIL score of 700 or above.
- The student must be at least 18 years old.
- Proof of admission to a recognised university abroad is required.
Secured loans are available to students who have assets to pledge and require higher loan amounts, sometimes up to INR 3 Crores, depending on the collateral.
2. Unsecured Education Loans (Non-Collateral Loans)
If you don't have assets to offer as collateral, you can still secure an education loan through an unsecured loan. These loans focus on the applicant's creditworthiness and financial background.
- The co-applicant's (parent or guardian) annual income must typically exceed INR 6 Lakhs.
- A minimum credit score of 700 is required for the co-applicant to strengthen the loan application.
- A solid academic history is crucial, with strong grades in your previous degrees.
- Top-ranked universities (according to QS rankings) significantly boost your chances of securing an unsecured loan.
- For some students, strong test scores, such as a GRE score of 300+, can improve eligibility.
Planning to study overseas but worried about finances? Don't miss our detailed guide on how to get an education loan for abroad studies in 2024.
Document Checklist for Elan Loans Application
To apply for an Elan Loans for study abroad, you need to submit a few essential documents. Here's a checklist for both the applicant and the co-applicant:
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Document Category
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Documents Required
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Student Documents
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Admission Letter, 10th/12th/Graduation Marksheets, standardised test scores (GRE/GMAT/TOEFL), Passport, and Recent Passport-size photos.
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Co-Applicant Documents
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PAN Card, Aadhaar, Income Proof (ITR, salary slips), Bank Statements (last 6 months).
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Collateral Documents (Secured Loan)
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Property Title Deed, Property Tax Receipts, Legal Reports, and Valuation Reports for pledged assets.
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Minimal Docs, Maximum Approval - Apply Now.
Application Process for Elan Loans Abroad
Applying for an Elan education loan can seem like a lengthy process, but breaking it down into clear steps can make it much more manageable.
Here’s how you can apply:
1. Check Eligibility
Before applying, ensure you meet the eligibility criteria mentioned above. If you’re unsure, consult with Elan Loan Advisors, who can assess your eligibility and guide you through the process.
2. Gather Required Documents
Keep a comprehensive document package, which includes student, coapplicant, and collateral documents. It will help expedite the process.
3. Submit Application
Once all documents are ready, submit your application either online through Elan's portal or visit an Elan office in person. Ensure that all details are accurate to avoid delays.
4. Verification Process
Elan will review your application and verify the documents you have provided. For secured loans, property evaluations and legal checks will be carried out. This step usually takes around 7-10 days.
5. Loan Sanction Letter
If your application is approved, you will receive a sanction letter detailing the loan amount, interest rate, repayment terms, and disbursement schedule. This letter is also crucial for visa processing.
6. Loan Disbursement
Once the loan is sanctioned and all paperwork is signed, the funds will be disbursed. Tuition fees are typically paid directly to the university. Living expenses can be transferred to your foreign exchange card or personal bank account.
Planning to take an instant loan for higher studies? Ensure you are familiar with the co-applicant rules first. Our guide on 'Who Can Be a Co-Applicant for an Education Loan' breaks down the eligibility and documents required.
Common Mistakes to Avoid During the Study Abroad Loan Application
The journey to securing a study abroad loan can be challenging, but avoiding a few common mistakes can make the process much smoother and faster.
Here are the key missteps students often make, along with tips on how to avoid them for a hassle-free loan experience.
Not Comparing Lenders
Choosing the first lender you come across can be a mistake. Interest rates, loan limits, and repayment flexibility can vary greatly. Always compare multiple lenders to find the best terms for your needs.
Underestimating the Total Loan Amount
Many students only factor in tuition fees and overlook living expenses, travel costs, and insurance. Make sure your loan covers the full cost of studying abroad to avoid funding gaps.
Submitting Incomplete or Incorrect Documents
Missing or outdated documents, like bank statements or ITRs, can delay or even cause your loan to be rejected. Double-check that all required documents are included, accurate, and up to date.
Ignoring the Co-applicant's Credit Score
A poor credit score from your co-applicant can lead to rejection, even with a strong academic record. Ensure your co-applicant has a CIBIL score above 700 and a stable income to improve your chances.
Misunderstanding Interest Terms
Some students assume no interest accrues during the moratorium period, but most loans charge simple interest during this time. Clarify how interest is calculated to avoid surprises.
Delaying Your Loan Application
Waiting until the last minute can risk missing out on reasonable loan offers or delaying visa approvals. Start your loan application as soon as you have your university admission letter.
Choosing the Wrong Loan Type
Applying for a secured loan without collateral or an unsecured loan without a strong co-applicant can lead to rejection. Pick the loan type that aligns with your financial profile.
Not Reading the Fine Print
Hidden charges or prepayment penalties can affect the total cost of your loan. Always read the loan agreement thoroughly before signing, and ask for clarifications if needed.
Elan Loans provides a reliable, flexible, and affordable solution to fund your overseas education. Whether you need a secured or unsecured loan, Elan Loans for study abroad loan requirements include favourable interest rates, quick disbursement, and easy documentation, making it an excellent choice for students.
If you're looking for the right partner that makes this education loan process smoother and simpler, Propelld can help. With quick digital approvals, collateral-free loans up to ₹50 lakhs, and flexible repayment options, Propelld takes the hassle out of financing your global education.
Take the first step towards your future—Apply with Propelld today!
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