Things You Must Know about Education Loan for Studying Abroad

Intro

Attending a foreign university for your education can be very beneficial for your career. However, studying abroad can cost you a lot of money. This is why many students drop their dream of going overseas for training. But you can easily solve this problem by applying for a loan for covering your education cost. Keeping this in mind today we are sharing with you everything you must know to get a loan for studying abroad.

What Is an Overseas Education Loan?

It is a loan product that aims to help students who don’t have adequate funds for sponsoring their overseas education. Besides this, it also helps students in covering their post-arrival expenses in a foreign nation. For instance, you can use it for covering post-arrival expenses like living expenses, stationery costs, etc. However, unlike other loans, education loans attract heavy interest rates. Moreover, you need to meet lots of complex requirements to get a loan for finishing your education overseas. To learn about these requirements in more detail you can contact our Abroad education consultants in Delhi.

Why You Must Consider Applying for a Loan to Cover Your Education Cost Abroad?

Sometimes students might not be able to arrange adequate funds by themselves for studying overseas. However, by taking a loan you can easily solve this program. Additionally, you can also use it for covering your post-arrival expenses. But to get an education loan you might need to fulfill lots of requirements.

Types of Loans

Mainly there are two types of loans for which you can apply if you seek to study in a foreign nation namely:

• Secured loan: In this type of loan the borrower has to mortgage an asset to receive a loan for his overseas education. For instance, you can mortgage your land and financial investments for raising a loan. However, you can’t mortgage agricultural land for raising a loan for your education.
• Unsecured loan: In this type of loan the borrower doesn’t have to mortgage an asset to receive a loan for education. However, most banks are a little reluctant to give these types of loans. Moreover, you will need to fulfill numerous requirements if you apply for an unsecured loan.

Eligibility Criteria

Getting a loan for pursuing your education abroad is not that easy. Moreover, you must satisfy certain criteria if you want to get a loan to cover your education cost. However, these criteria can vary from bank to bank. Following are the requirements that you will need to meet if you want to get a loan for abroad education:

• GRE score
• Co-borrowers profile
• Proof of income
• Bank statements
• Collateral, etc.

Necessary Documents

Following documents, you will need to apply for a loan to cover your overseas education cost:

• Application form
• Academic transcripts
• Recent photographs
• KYC documents
• Residence proof
• Bank statements
• Income proof
• Collateral documents
• Birth certificate
• Letter of acceptance, etc.

Application Process

Following is a guide that you can follow to apply for a loan to study abroad:

• Select the loan product that best meets your requirements
• After that, go through all its details. For instance, check its moratorium period, repayment tenure, interest rate, etc.
• Submit application form
• Upload necessary documents
• Wait for the decision of the lender

Top Education Loan Providers

Following are some of the top education loan providers in India:

• Public/Private banks
• Non-banking financial companies
• Crowd-funding companies.

Reasons for Loan Rejection

There can be numerous reasons why a bank may reject your education loan plea. For instance, it may be due to your academic profile, the age of the applicant, etc. Following are some of the most common reasons why banks reject education loan pleas of students:

• Age of applicant
• Missing documents
• No proof of income
• Bad academic record, etc. To learn how to increase your chances of getting a loan to study overseas feel free to contact our Abroad education consultants.

Conclusion

Now you are aware of all the things that you need to know to get a loan to study overseas. Thus, now you are in a position to easily complete your education loan process effortlessly to study abroad. But we recommend you double-check the eligibility criteria of the lending bank/financial institution before applying for a loan. Why? Because the lending criteria can vary between different banks/financial institutions.