Quality education has become extremely crucial and is a must for a complete and successful life. Study abroad is a dream for many. The quality education and exposure offered by foreign institutes and universities is a goal for many aspiring students. The cost of education is, however, increasing rapidly. In fact, the fee structure of reputed institutions is already quite high. Hence, self-funding has become quite difficult and thus it is the education loan has become the most viable option for aspiring candidates. The process of Education Loan for Abroad Studies
- To apply for an education loan for abroad studies, one must be an Indian citizen, having secured an admission into a college/university recognized by a competent authority in abroad.
- A student needs to have a co-applicant in order to execute the loan process. (Parents, Siblings, Spouse)
- For the loan amounts ranging between 4-7.5 Lacs, one needs to have a third party guarantor.
- For loan amounts above 7.5 Lacs, collateral is mandatory. (Example-Property, Fixed Deposits)
- Once the loan application is approved, the banks disburse the required amount directly to the college/university as per the given fee structure.
- The loan is repaid by the student. Generally, the repayment starts when the proposed course is completed. There are certain banks that even provide a relaxation period of 6 months after securing a job or a year after the completion of studies for repayment.
- The banks use the Marginal Cost of Funds based Lending Rate (MCLR), plus an additional spread to set an interest rate for education loan.
List of Documents
- Academics documents
- Offer letter/acceptance letter from the foreign institute
- Schedule of expenses for the course
- Copy of letter confirming scholarship, if any
- Two passport-size photographs
- Statement of borrowers bank account for the last six months
- Income Tax assessment order not older than two years
- Statement of Assets and Liabilities
- Proof of identity and residence
- Income Documents of parents/guardian/co-applicant
- Collaterals in the form of FDs / Immovable Property