Studying abroad is a dream for many, but the high costs of tuition and living expenses can seem like a major obstacle. Fortunately, an international education loan can bridge the financial gap, turning your academic aspirations into a reality.
Amidst the numerous options available, a Yes Bank Education Loan for Abroad stands out as a popular choice for students seeking to finance their studies in top universities worldwide.
This guide provides a comprehensive overview of the loan's features, eligibility criteria, and the application process to help you make an informed decision.
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Key Features and Loan Amount
Yes Bank offers competitive and student-centric features for its study abroad loans. One of the primary advantages is the flexibility in the loan amount, which is tailored to the student's needs and the university's ranking. The bank provides both secured and unsecured loan options to cover a wide range of academic programmes.
- Secured Loan:
For secured loans, where collateral is provided, the loan amount can go up to ₹1.25 Crore.
- Unsecured Loan:
For unsecured loans, the amount is sanctioned based on the university's ranking. For instance, loans for students admitted to a top 75 QS World Ranking university can go up to ₹50 Lakh, while those in universities ranked 300-500 can receive up to ₹30 Lakh.
- Interest Rate:
The Yes Bank Education Loan interest rate for Abroad is competitive, with rates ranging from 11.25% to 12.75%. The final rate depends on the type of loan (secured vs. unsecured), the university's ranking, and the overall profile of the applicant and co-applicant.
- Loan Tenure:
The loan tenure is flexible, with a maximum repayment period of up to 12 years, allowing students ample time to start their careers and settle their debt comfortably.
- Moratorium:
A moratorium period of Course + 12 Months is provided, during which you are not required to make full EMI payments. This grace period allows you to focus on your studies without financial pressure.
- Minimum Co-Applicant Income:
A co-applicant is mandatory, and their income is a key factor in loan sanctioning. The minimum monthly income of the co-applicant is typically in the range of ₹25,000 - ₹40,000, which is assessed to ensure repayment capacity.
- Processing Fee:
The processing fee for the loan is generally 1% - 2% of the sanctioned loan amount, plus applicable taxes.
- Tax Benefits:
The interest paid on the education loan is eligible for tax deductions under Section 80E of the Income Tax Act, which helps to reduce your taxable income and overall cost of the loan.
Yes Bank Study Abroad Loan Eligibility
To be eligible for a Yes Bank Education Loan for Abroad, applicants and their co-applicants must meet a specific set of criteria.
- The applicant must be a citizen of India.
- The student must have secured an official letter of admission to a recognised educational institution abroad.
- A strong academic record with a minimum of 50% marks in the last qualifying examination is typically required.
- A collateral-free loan is available for amounts up to a certain limit (e.g., up to ₹50 lakh for top-ranked universities). For higher loan amounts, providing collateral such as residential property, fixed deposits, or bonds may be mandatory.
- A co-applicant, such as a parent, spouse, or sibling, with a stable source of income, is mandatory. Their financial profile and credit history are crucial for loan approval.
When comparing loan options, a clear understanding of your interest rate can save you money in the long term. Learn more about interest rates with a blog on How to Check Your CIBIL Score, as a better credit score often leads to a more favourable rate.
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Yes Bank Abroad Education Loan Application Process
The Yes Bank abroad education loan application process is streamlined to be as convenient as possible for students and their families.
- Online Application:
Start the process by applying online through the bank's official website or a trusted loan aggregator platform.
- Document Submission:
Once you fill out the application, a bank representative will guide you on the necessary documents. These generally include identity and address proofs, academic records, admission letters, and financial documents of the co-applicant.
- Verification and Approval:
The bank will verify the submitted documents and assess your eligibility. This includes a credit check and a review of your academic and financial profile.
- Disbursement:
Once approved, the loan amount is disbursed to the university or the student's account as per the fee schedule. The bank offers a flexible repayment plan with a moratorium period.
Documents Required
A comprehensive set of documents is required to ensure a smooth and quick loan application process. It is advisable to have all the necessary paperwork ready before applying.
Applicant Documents Required
- Proof of identity and address can be given with an Aadhaar card, PAN card, passport, or voter ID.
- Provide academic records, including mark sheets and certificates for Class 10, Class 12, and any graduation degrees.
- Submit the official and unconditional offer letter from the foreign university as proof of admission.
- Include valid entrance exam scores such as IELTS, TOEFL, GRE, or GMAT.
- Attach a copy of your valid passport, which is mandatory for international loans.
- Add two to three recent passport-size photographs.
Co-Applicant Documents Required
- Proof of identity and address can be provided with an Aadhaar card, PAN card, or passport.
- For salaried applicants, submit the last three months’ salary slips, Form 16 or 26AS, and income tax returns for the past two years.
- For self-employed applicants, provide business establishment proof along with the last two years’ income tax returns and financial statements.
- Include bank statements for the last six months.
- Add a document that shows the relationship between the applicant and the co-applicant.
If you’re looking for education loan options that don’t require collateral, do check out our detailed guide on Banks That Give Education Loans without Collateral for Abroad.
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A Yes Bank Education Loan for Abroad offers a comprehensive and accessible way to finance your international education. With competitive interest rates, a flexible loan amount, and a straightforward application process, the bank provides a strong financial backbone for students pursuing their academic ambitions. By understanding the eligibility criteria and preparing your documents, you can secure the funding you need to take the next big step in your career.
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