Remember these 4 tips while applying for an overseas education loan


With the rising cost of higher education in India and overseas, the majority of students opt for education loan to fund their studies. Study overseas aspirants willing to pursue their education at international universities situated overseas often look for financial aid and this is when the overseas education loan comes to the rescue.

In order to apply for an overseas education loan, first of all, students must have received the offer letter from the university. Based on the conditional or unconditional offer letter, they can approach any financial institutions to apply for an overseas education loan. In India, there a bunch of financial institutions like private banks, nationalized banks and NBFCs that offers education loans. These institutions offer two kinds of overseas education loan i.e., secured education loan and unsecured education loan.

Every financial institution differs in factors like margin amount of the loan, processing fees, repayment tenure, interest rate etc. Hence, it is extremely important to take these factors into consideration and see if the students are eligible to avail a loan as per the overseas education loan requirements of the financial institution.

4 Things to consider while applying for an overseas education loan

1.     Calculate and determine the loan amount you need

Studying overseas is a huge decision of one’s life and naturally, students who wish to study in an international university plan it well in advance. So, it is recommended to calculate the overall costing including the tuition fee, accommodation charges, library fee, cost of books, travel fare and other required charges. Once you have calculated it determine the loan amount that you need.

2.     Compare Financial institutions on various factors

As mentioned previously, there are numerous financial institutions that avail an overseas education loan for the students to study abroad. To finalize one institution, students must check and compare the various factors pertaining to the education loan. They are namely, Quantum of Finance, Rate of Interest, Margin, Tenure, Processing Fees, Moratorium Period, Disbursement, Serving Simple Interest, Property Acceptable etc.

3.     Keep the required documents ready

The overseas education loan process is quite lengthy, and it requires a bunch of documents to process the application for an overseas education loan. Make sure to arrange those documents. Just to give an insight, here is the list of documents required for an education loan includes:

•        Duly filled education loan application form

•        Offer letter from the university to show the proof of admission

•        According to the I-20 form, an estimated cost of study

•        Original educational documents including mark sheets from X onwards

•        Documents of the qualifying examinations GRE, TOEFL or GMAT

•        Residential proof of the student and co-applicant

•        IT returns of the co-applicant

•    PAN Card and other necessary identity proofs of the applicant and co-applicant

•        A copy of passport

•        Income proof of the applicant and the co-applicant

•        Details of assets and liabilities of the co-applicant

4.     Submit your overseas education loan application to the bank

Now that you have arranged the required documents, it is time to submit the education loan application to the financial institution and apply study loan for abroad studies. Be it a nationalized or private bank or an NBFC, submit the education loan application. It is advisable to begin the process of applying for an education loan at the earliest possible.

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