How to get an education loan for study abroad?
Studying abroad has become more popular at present but it is not possible for everyone to achieve it. The major reason for this impossibility is the lack of funds. When people were wondering about how to get an education loan to study abroad, this article brings a better knowledge of it. Whatever is the university chosen by the student, options are high for getting an education loan to study abroad.
The financial limitation has vanished the dream of study abroad for many students. Being aware of education loans for study abroad can make your dream come true. Let this article be a life-changing moment for study abroad aspirants.
Importance of education loan for study abroad:
Money has become the deciding factor for everything that happens in our life. Success and failure of your efforts mostly depend on money, especially for study abroad.
Many drop their plan of studying abroad due to a lack of funds. Financial loan plays the most important part of making your dream come true. Varieties of financial loans are available for study abroad and it is the responsibility of the student to explore the opportunities.
Features of education loan for study abroad:
- Such loan demands a co-applicant
- The student should be an Indian citizen
- Confirmation of admission is very important
- Various options of collateral are accepted
- These loans are available only for under graduation and post-graduation programs
Types of education loan for study abroad
Education loan for study abroad is available depending on your academic requirements. The terms and conditions for study abroad loans are totally different from domestic education loans. This article highlights the different types of education loan available for Indian students:
This loan is found to be useful for students who struggle to manage their pre-application expenses. Pre-application expenses include an interview, application, examination, etc. this loan demands the educational background of the students and also the application of the abroad universities approved by banks. The rate of interest for this loan is quite affordable.
Getting a visa for studying abroad demands enough funds in the account. This amount is to prove that the candidate is eligible to afford his/her expense in a foreign country. To receive pre-visa education loans, a conditional offer letter from the institution is required.
Expenses other than academic needs come under the pre-admission loan. Travel expenses involved in admission processes, tuition deposits etc can be managed using this loan. This option is available only for study abroad aspirants.
This type of loan can be availed by students who struggle to repay their education loans. This type of loan demands repayment tag and also the availability of fund for repayment. Refinance can also be used by students for extending the loan tenure.
This loan includes expenses related to accommodation, books, travel, deposits, insurance, exam, books, and other related expenses. The term consolidated emerged because of the possibility to merge different loans to reduce processing fees.
Limitation for loan amount:
- The loan amount ranges from 10 lakhs to a maximum of 1.25 crores.
- Rate of interest: interest rate ranges from 9.7% to 16.2% per annum.
- Loan tenure: the minimum duration starts from 5 years to a maximum of 25 years
- Moratorium Period: there are two options: one six months after employment or twelve months
- after completion of the course : Processing charges: processing charges ranges from zero to 15%
What are the Courses eligibility for study abroad loans?
Education loan for study abroad is available for the following courses:
- Undergraduate degrees
- Diploma programs
- Postgraduate course and
- Doctorate programs
Indian Banks offering Education Loans for Studying Abroad:
List of banks providing education loans for study abroad:
- State bank of India: this bank offers a maximum amount of 20 lakhs as an education loan at an interest rate of 10.70% per annum.
- HDFC bank: the maximum amount that can be availed from this bank is 36 lakhs and the interest rate is 14.88% per annum.
- ICICI Bank: the maximum amount offered by this bank is 3 crores and the interest rate is 11.50% per annum
- Canara Bank: a maximum amount of 36 lakhs is offered by this bank at the interest rate of 10.70% per annum
There are still other banks providing financial loans for study abroad. The student can choose the bank according to their convenience. It is mandatory to provide all the required documents while applying for an education loan to study abroad.