Four Most Frequently Asked Questions on Overseas Education Loan


Studying in a foreign country is a critical life-changing decision and rationally correct to stay ahead in the global competition. While aiming for globally renowned universities, course and the financial investment should be taken into consideration. But a major problem that holds the students and the families back from taking the big leap is insufficient to finance.
Over the past few years, the efflux of Indian students for studies abroad has drastically steeped. More and more students want to pursue higher studies abroad from a globally recognized educational institution. To foster confidence in these ignited minds, the government has introduced and implemented scholarship schemes.
In the same context, the Indian Bank Association framed a comprehensive Education Loan Model adopted by all the banks to support students financially for studies abroad. A basic understanding of overseas education loan, its kinds, the process, the eligibility criteria, the documents required, etc. is very crucial. Following are some of the questions asked frequently by the prospective students. 

What is the probable cost of education in developed foreign countries?
Be prepared to invest INR 15 to 20 lakhs for pursuing post-graduate diploma course, INR 35 to 45 lakhs for a postgraduation programme. If you have just passed your higher secondary education and looking for an under-graduation programme abroad, then it might cost you between 75 lakhs to a crore. 

What is covered under an overseas education loan?
A few students assume that education loan is offered only for the tuition fee. Most students would not even think on these terms. But it is quite important to note, overseas education loan relieves you from paying not only the tuition fee but also the accommodation expenses, insurance premium, laptop charges, airfare, visa expenses and the study material costs.

Since the process involves monetary transactions, there must be terms and conditions. What are they?
Yes. Given the amount of money borrowed from the bank is huge, a student is bound to abide by the terms and conditions. A student applying for a secured overseas education loan is required to pledge collateral at the lender. Any tangible asset like personal immovable property (non-agricultural land), flat, residential house, etc. should be mortgaged at the bank. For a better understanding of mortgage and the secured education loan, please refer to one of our recently published articles. You may also consult with an experienced loan advisor.

Am I eligible for a secured overseas education loan?
You’re eligible if you fulfil all the below conditions.
1.      Your citizenship. Any financial institution validates whether you’re a citizen of India or not at the first hand.
2.      Your academic record. A good academic history can mean different to different banks. Banks consider students who have secured at least 50% in their higher secondary and/or graduation period.
3.      Course and employment opportunity. Banks are more interested in sanctioning education loan for courses that are job oriented.
4.      You’re likely to get faster education loan if you’ve secured admission in a reputed university or a college.
5.      Percentage: An applicant must have secured at least 50% in the previous qualifying examination. There should be fewer backlogs and there shouldn't be any education gap.
6.      Entrance exam score. The applicant should provide scorecard of the entrance exam faced, i.e. GRE, GMAT, TOEFL, IELTS etc. when applying for education loan for abroad studies.
7.      Admission letter. Make sure that you’ve confirmed and received your letter of admission from the foreign university that you’ve applied to.
8.      Bank statement. Bank statement of the applicant or co-applicant of the last 6 months. It is a document summarising your financial transactions.
To know how to get education loan for study abroad, you may consult with authorized and experienced loan advisor. You may also read about the rate of interest, moratorium period, marginal cost and the CIBIL score in our published articles.
Hope you enjoyed reading through!
Keep visiting the page!

Read more:
Fund for Higher Education Abroad and how to Manage it

Comments

  1. Paisa Factory27 February 2020 at 01:51

    All want education but due to financial issue many people wont get the proper education so you should try the best online education loan.

    ReplyDelete

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