Education Abroad is an expensive affair with many documentation processes to finally meet all the requirements. Although, educational loans are one of the core reasons why abroad studies are highly accessible to a vast domain of society coming from different financial backgrounds. There is a tax rebate for it and it’s the most hassle-free process for showing the funds during visa which eases out the later processes for your overseas dreams. The banks have their own set of checks and balances guided by their policies regarding the approval of the loans. Apart from its merits, educational loans do have certain demerits as well. For example, the tedious documentation and approval process if not done properly can end up taking a lot of time to get a loan sanctioned which can lead to months of delays.
We at Maclareen intend to ease your loan processes by providing our sincere assistance regarding the application processes, the researched set of documents, and all the nitty-gritties that will help you in taking the right step in every stage of your abroad studies.
To know more about your eligibility for an educational loan, Click Here…
Here are the basic eligibility criteria for Indian Banks to apply for the education loan:
● The applicant should be a citizen of India.
● The applicant must have attained the age of 18 or else the parents will have to take the loan.
● The applicant must have a good academic background.
● The applicant must have secured admission to a recognized foreign university/institution/college.
● The desired course must be a technical or professional one.
Here is a list of Documents required for applying for an Education Loan:
● Filled application form
● Photo ID
● Residence proof
● Academic documents like Mark sheet and certificates of the applicant and Mark sheet (Score Report) of GRE, GMAT, TOEFL, IELTS.
● Admission proof
● Bank statements
● Income proof
● In case of collateral (immovable property) – Property title deed, Building approved plan, and NOC for a mortgage from builder or society.
Apart from this, you need another set of technical as well as legal documents to confirm your approval. To find more about the requirements and document list, Click Here…
The procedure for an education loan for Studying Abroad:
The entire loan process is time taking, so it is always advisable to apply for a loan a little early.
Follow these steps for applying:
● Check the course first in which you are going to study and check if it’s recognized by the banks or not.
● Figure out the total amount of loan you require and how much you are going to arrange on your own.
● Compare the student loan provided by different banks so you can select what fits you the most.
● Fill out the loan application form, approach the bank later.
● After the loan approval, the bank will issue a loan document that includes various elements of the loan.
● After this, the bank will disburse the amount in installments or as asked by the university.
Top Education Loans Providers in India:
1. HDFC Bank
HDFC Bank is one of the largest banks offering education loans for overseas education, Their process is also faster and more efficient. The maximum loan amount offered by the bank is up to INR 20 lakhs.
2. State Bank of India (SBI)
SBI offers a loan of maximum INR 30 lakhs. The Interest rate charged on the loan amount is up to 2%. Further, the loan repayment tenure can be 1 year to 15 years.
3. Axis Bank
Axis bank offers study loans at competitive interest rates. The bank offers a maximum of INR 20 lakhs and covers different costs like tuition, accommodation, and books helping the miscellaneous expenses as well.
4. Punjab National Bank
PNB Udaan is the education loan scheme offered by the Punjab National Bank for overseas education. The borrower needs to show a loan margin of 15% for the loan amount of above INR 4 lakhs.
Study Abroad Education Loan from Non-banking financial companies:
Apart from the nationalized banks student loans can also be possible through Non- banking financial companies.
Some of the NBFCs options are:
It is considered one of the most popular non-banking financial institutions in India. Student loans from Avanse cover tuition fees up to 100% and other expenses.
Credila is part of the renowned HDFC bank and provides loans to Indian students who have overseas aspirations. The loans are given at a competitive floating rate of interest and can be repaid within a period of 10 years which eases out the process further.
3. International Student Loan Program (ISLP):
This program is designed for international students who want to study in the US. Through this program, students can borrow a wide range of amounts from even as small as 1500 dollars and can extend the repayment period up to 25 years.
4. Global Student Loan Corporation (GSLC):
The GSLC offers loans to international students to pursue their higher studies in the US. The advantage is this type of loan does not require a co-signer.
To find more about the requirements and document list for the loan process, Click Here…