An Indian student’s application to study abroad is heavily influenced by finances because tuition and living costs are substantially greater abroad than they are in India. Indian students benefit greatly from student loans for international studies because they can now pursue their aspirations of receiving an education abroad.
A life that is satisfying and prosperous requires a quality education. For many people, it is comparable to receiving a degree from a college or university abroad. But the price of schooling is rising quickly. In fact, it already costs a fortune to meet the expenses in different countries.
Parents who wish to give children the greatest education possible mostly invest their money in mutual funds, fixed deposits, and unit-linked insurance plans, for the long term. But even with all of this, one can still experience financial difficulties. Therefore, a loan for higher education abroad is critical in many situations because it fills the gap between the available funds and what is needed.
Most Indian banks provide flexible time frames and lower interest rates on overseas education loans to suitable applicants. It is not difficult to apply for a loan, but very few students are aware of the basic requirements for student loan eligibility, which are critical regardless of the country or university they proceed to. So here, let’s learn more about education loans for abroad studies through this blog!
Eligibility to apply for Education Loans to Study Abroad
Checking your eligibility for a student loan is a key first step before applying for an education loan. So, before applying for an education loan, you must check off the following standard requirements from the list that follows.
Norms for Citizenship and Age
The citizenship and age requirements are the absolute minimum and most significant criteria for student loan eligibility. To apply for a student loan in India to study abroad, you must be an Indian citizen who is at least 18 years old and not older than 35. Your parents will need to apply for a student loan if you are under the age of 18.
You should have a strong academic record starting in high school if you wish to qualify for an overseas education loan. Candidates who exhibit outstanding academic accomplishments in their tenth, twelfth, and graduation years are granted student loans from banks. If you have a strong academic record, the loan amount that has been approved for you will also fulfill your needs. Banks or education loan programs do not enforce any baseline grade or percentage standards as a prerequisite for student loan eligibility.
Selection of University
Your university application status is yet another basic factor in student loan eligibility. You must be admitted to a prestigious overseas university or another accredited international institution. For any Indian student who wants to apply for a student loan, this is a requirement that must be satisfied. You must submit an offer letter with an acknowledgment of acceptance from the university.
If you, the student who is the primary applicant, are unable to fulfill your student loan payments, a co-applicant will be held accountable. For the purpose of meeting this student loan eligibility, your parents, legal guardians, spouses, and parent-in-law (if married) may apply as co-applicants.
Any loan, including student loans, is provided as a substitute for collateral. Such loans are referred to as secured student loans. Basically, you must submit collateral security if your estimated loan amount is greater than INR 7 or 7.5 lakhs.
There are various forms of collateral you can offer or guarantee against the student loan, including:
- Immovable assets, such as mutual funds, fixed deposits, life insurance policies, etc.
- Immovable property or assets, such as non-agricultural land, houses, etc.
- Immovable property or other belongings owned by a third party (friends, family, etc.)
The last one among the other three, is only very infrequently allowed depending on the student loan programme. You can obtain a loan in the range of INR 10.5 lakhs to INR 1.5 crores with collateral security.
Things that help you to Increase Your Eligibility for a Student Loan
Banks are attentive while determining a candidate’s eligibility to make sure the students acquire financial aid. Before approving a loan, the applicant’s overall academic standing, desired course of study, and current admission status are all taken into consideration.
- Very strong academic record
- A strong financial background of parents, guardians, or co-borrower
- High grades or rankings in the qualifying tests
- Admission to a reputable or top-tier institute or university
- Promising future employment/income prospects
Documents needed to apply for a student loan to study abroad
- All qualifying exam transcripts
- Proof of admission confirmation
- Two photos in passport size
- Calculation of costs, including accommodation and tuition
- Bank statement that is no more than six months ago
- Income tax documentation (Not older than two years)
- Proof of collateral, if applicable
- Proof of residency
- Identity documentation (Aadhar card, passport, driver’s license, or voter card)
How to Apply for an Education Loan?
You have two options for expediting the loan application process: either contact Abroad Study Consultants in India, who will walk you through the process from beginning to end, or take the actions listed below.
- Research the course you’re interested in applying for before anything else.
- Determine the precise tuition charges you must pay for that course.
- Compare the different kinds of student loans available and select the one that will fully pay your tuition costs.
- Fill out the application with proper information after selecting the appropriate college loan.
- The bank will get in touch with you as soon as your loan is approved with all the additional information.
- Your loan will be disbursed to your account by the bank once you have signed the final obligation form.
Things to Keep in Mind When Applying for a Student Loan
Here are some key considerations you should make before deciding to apply for an education loan to fund your international studies.
• Moratorium period – This is when you, the borrower, are not compelled to begin making payments on your debt.
• Loan Margin – Typically, student loans do not cover all your tuition costs. Even though 90% of the expenses are often covered by the banks, the remaining 10% must be negotiated separately by the candidate.
• The Impact of Exchange Rates – Always research the currency exchange rate of the nation you will be traveling to for your study abroad program before applying for a loan.
To obtain the best education loan for studying abroad, complete knowledge of the requirements, terms, and eligibility of education loans is essential. Any student who wants to pursue an overseas education can overcome their academic and financial obstacles with the help of the information provided above. You can visit Abroad Admission Hub, a venture of Infos Connect, one of the top abroad education consultants in Kerala, to clear all your doubts regarding education loans and more. Feel free to book free counseling and start the journey to your dream career abroad.