30 Jan
FOREIGN EDUCATION LOAN: EVERYTHING YOU NEED TO KNOW ABOUT FINANCING YOUR EDUCATION ABROAD
A foreign education loan, specifically designed for studying abroad, is a financial product that assists students in funding their education in a foreign country. Here are key features and aspects of foreign education loans:
- Pursue education abroad
Additionally, education loans provide students with the means to pursue their academic goals without worrying about immediate financial constraints. Furthermore, these loans offer a pathway to higher education, which can lead to better career prospects and a higher earning potential in the future. Consequently, education loans open doors to a world of opportunities for students who are eager to further their education and achieve their academic ambitions.
- Lower interest rates
Education loans typically have lower interest rates than other types of loans and many banks or financial institutions offer loans at competitive interest rates. This makes education loans a more affordable option for students who need to borrow money to pay for their education abroad.
- Flexible Repayment
Education loans typically offer flexible repayment options or long-term loan tenures that make these loans more accessible and convenient. This can help students manage their loan payments after graduation.
- Improved credit score
A side advantage for the future, if students make their loan payments on time and in full, they can improve their credit scores over time. This can help them qualify for other types of loans, such as home mortgages or car loans, in the future.
ELIGIBILITY FOR FOREIGN EDUCATION LOAN
Eligibility criteria for education loans may vary slightly from one bank to another, but generally, the following criteria apply:
- Citizenship: The student must be a citizen of India.
- Age: The student should be 18 years or above.
- Admission: The student should have secured admission to a recognized university or college abroad and been approved.
- Academic Qualification: The student should have completed his/her higher secondary education (Class XII) from a recognized board
- Co-borrower: A co-borrower, such as a parent, guardian, or spouse, is usually required to sign the loan documents and guarantee the loan repayment.
Additionally, some banks may require students to provide collateral, such as property or investments, depending on the loan amount and repayment terms. It is important to note that eligibility criteria may vary depending on the bank and the type of loan. Therefore, it is recommended to check with different banks and compare their terms and conditions before applying for an education loan.
DOCUMENTS REQUIRED FOR FOREIGN EDUCATION LOAN
Requirements differ as per the banks but the general documents required for a loan to pursue education abroad are:
Identity proof: To establish the identity of the student and the co-borrower, banks require documents such as a passport, AADHAAR card, PAN card, or driving license. The documents should be up-to-date and valid.
Firstly, address proof: The student and co-borrowers address proof. Secondly, the documents should be recent and show the person’s current address.
In addition, students’ academic records: Banks may require mark sheets from Class X, XII, and graduation (if applicable).
Moreover, admission proof: To verify that the student has been admitted to a recognized university or college, an admission letter or fee receipt from the institution is required.
Furthermore, income proof: To establish the co-borrower’s income, income tax returns, salary slips, bank statements, or other such documents are required. Additionally, the documents should be the latest and most stable.
Similarly, collateral documents: If collateral is required for the loan, documents, property papers, or investment certificates should be provided as proof. Additionally, the documents should establish ownership and the value of the collateral.
Lastly, passport-size photographs: These may be required for identification.
THE GENERAL PROCEDURE TO GET AN EDUCATION LOAN
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First, you should choose a bank or financial institution that suits your needs of pursuing education abroad. Additionally, to qualify for an education loan, make sure you check the eligibility requirements with your chosen bank or financial institution. Furthermore, ensure that you meet the criteria before applying for a loan.
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Moreover, collect all the necessary documents for an education loan. These may include identity proof, address proof, academic records, admission proof, income proof, collateral documents (if applicable), and legal and technical documents.
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Finally, fill out the education loan application form with accurate and complete details, and submit the completed education loan application form along with the required documents to the bank or financial institution.
First, the bank or financial institution will verify the application and documents. If everything is in order and the applicant meets the eligibility criteria, then the bank or financial institution will approve the loan. After approving the loan, the bank or financial institution will disburse the loan amount to the student’s account or directly to the institution, as per the loan policy.
TOP LOAN PROVIDERS IN INDIA TO PURSUE EDUCATION ABROAD
Several education loan providers in India offer loans for students who wish to study abroad. Some of the top education loan providers in India are:
- State Bank of India (SBI)
SBI offers education loans for education abroad at competitive interest rates, with flexible repayment options. In terms of education loans for abroad studies, Global Ed-vantage is the most popular. It offers the lowest interest rates to finance education. With an interest rate of 10.9%, a loan of up to 1.5 crore will be provided for 15 years.
- HDFC Credila
HDFC Credila is a subsidiary of HDFC Bank and offers customized education loans for education abroad at floating rates.
- Axis Bank
Axis Bank offers education loans for students who wish to pursue higher education abroad, with loan amounts ranging up to 20 lakhs and loan tenure being 15 years.
- ICICI Bank
ICICI Bank offers education loans for studying abroad at attractive interest rates, with loan amounts up to Rs. 1 crore.
- Avanse Financial Services
Avanse Financial Services offers customized education loans for students pursuing education abroad at floating interest rates.
- Bank of Baroda
Bank of Baroda offers education loans for abroad education, with loan amounts ranging up to Rs. 150 lakhs.
- Punjab National Bank (PNB)
PNB offers education loans for students who wish to pursue higher education abroad as per their needs with a maximum tenure of 15 years.
These are some of the top education loan providers in India for studying abroad in 2024. It is imperative to compare interest rates, loan amounts, and repayment options of different lenders before deciding.
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