05 Sep How to Apply Student Loan for Abroad Studies
So many students wish to go abroad, especially to Canada, to get a quality education. However, sometimes they don’t have the financial resources to do so. In this case, they can get a Canada study loan from banks that provide one. Before applying for a loan, they must have chosen a university to study in. Let’s check out the other eligibility requirements before you go ahead and apply for a study loan for abroad studies.
Eligibility to Get a Study Loan Abroad
If you are going to apply for an education loan, you need to make sure that you are eligible for it. Have a look at some common eligibility requirements that you should meet in order to get a study loan abroad. To be considered for a study load, you should:
- Be an Indian citizen.
- Be at least 18 years to avail yourself of a loan.
- Have a good academic record.
- Be admitted to a recognized foreign university.
- Take up a technical/professional course to be eligible for a bank loan
Procedure to Apply for an Education Loan
If you are eligible to get a study loan abroad, you should know the procedure that you’ll have to follow in order to apply for a student loan:
- Check if the course chosen by you is recognized by the banks to provide the education loan abroad.
- According to your financial needs, decide the amount you are going to get as a loan.
- After comparing the various options available to get a student loan, choose a bank that recognizes your course and fulfills your financial requirement.
- After choosing the bank and the amount required for loan, you can fill out the loan application form and approach your bank.
Since it takes some time to get your student loan approved, you should apply for a loan a little early.
Documents Required to Get an Education Loan for Abroad Studies
You need certain documents to get a study loan. Make sure you have all your documents in one place to avoid last-minute rush. Make sure you have the following documents:
- Filled Loan Application Form
- Mark sheets of the last examination qualified by applicant.
- Proof of admission in the abroad university. (Scholarship if applicable)
- Schedule of expenses for the specified course.
- Two passport size photographs.
- Last six months’ Bank account statement.
- 2 years ITR with statement of income.
- A record of assets and liabilities of the co-applicant.
- Income Proof (i.e., salary slips/Form 16)
- Residence Proof
Once your education loan is approved, the bank will issue a loan document that includes various elements of the loan. After the loan document is signed, the bank will disburse the amount in installments or as asked by the university.
Top Banks that Provide Study Loans in India
There are reputed banks in India that provide education loans for studying abroad. What are those banks? Read on to find out:
HDFC Bank offers study loans to students even before the student has secured admission to a foreign university. Being one of the largest private banks, HDFC offers maximum education loan of up to INR 20 lakhs.
State Bank of India
SBI offers an education loan of up to INR 30 lakhs for studying abroad with a loan margin of 15%. You are charged a 2% interest rate on the loan amount and the tenure for loan repayment can be up to 15 years.
You can get study loans abroad at competitive interest rates at Axis bank. If your loan amount exceeds INR 4 lakhs, you need to have a margin of 15%. Axis bank also offers a maximum of INR 20 lakhs and covers different costs like tuition, accommodation, and books.
Punjab National Bank
Punjab National bank offers foreign education loans under the scheme PNB UDAAN. So, students wishing to pursue their graduate and post-graduate degrees can get a loan easily. However, you have to have a loan margin of 15% if your loan amount is more than INR 4 lakhs. If you need an education loan to be admitted at the world’s top 200 universities, the bank offers the base rate as the interest rate.
So, you can go to any of these banks but apart from these, there are institutions that you can go to and avail yourself of a loan for your education.
NBFCs (Non-banking financial companies) that Provide Education Loan
Apart from the nationalized banks, there are non-banking financial companies/institutions (NBFCs) that give students loans. You’ll have to provide collateral as security to the banks as the loan amount is generally more than INR 7.5 Lacs.
So, if you are a student looking to study abroad, you can get education loans from either a bank or some other financial institution.
Have a look at some of the NBFCs-
- Credila: It provides loans to Indian students who wish to study abroad but can’t afford it. You get loans at a competitive floating rate of interest which can be repaid within 10 years.
- Avanse: This is a part of the DHFL group. Being one of the most popular non-banking financial institutions in India, the loan you get from Avanse covers your complete tuition fees and more.
- International Student Loan Program (ISLP): Through this loan program, international students wishing to study in the US can even borrow a very small amount of money $1500, and can repay up to 25 years. The loan paid out under ISLP covers your course fees along with some other expenses in the foreign country.
- Global Student Loan Corporation (GSLC): If you want to get an education loan without a co-signer, GSLC offers you that. So, if you are unable to pursue higher studies and need a loan for it, this is a good option to apply for a loan.
This is all about getting an education loan for abroad studies. Contact India’s leading education loan providers through Immivoyage.