Education Loan for Abroad Studies, Foreign Education Loan, US, Australia

Education Loan for Abroad Studies: To study is the dream of many. However, the expenses are not affordable for everyone. Those who want to pursue higher studies from abroad find it challenging to arrange funds. However, now an education loan for abroad studies is a great option for you. A loan will make you stress-free about the finances and you will continue your studies seamlessly. Here, we will discuss the information related to education loans, eligibility criteria, sources for seeking the loan, documents, and many more.

Eligibility Criteria:

First, it is important to check the eligibility criteria to apply for the education loan.

  • The candidate should be a citizen of India.
  • The candidate must have acquired 18 years of age to apply for the loan
  • The candidate must have a good academic background.
  • Candidate must have acquired the secured admission to the recognized foreign university/institute/college.
  • The desired course in which the applicant is planning to study must be professional or technical because banks give preference to job-oriented courses.

Documents Required to Apply for Educational Loan:

Given below is the list of documents required to apply for the loan:

  • Application form
  • Passport size photographs of the applicant and the co-applicant.
  • Photo ID of the applicant and the co-applicant. (You can choose anyone from the options such as PAN card, driving license, Voter ID card, Aadhar Card, or Passport)
  • Residence proof
  • Academic records:
  • Admission proof: Admission letter acquired from the college or the university.
  • Bank statements: Bank statements of the co-applicant of the last six months
  • Mark sheet and certificates of the applicant
  • Mark sheet (Score Report) of GRE, GMAT, TOEFL, IELTS, etc. (any one)
  • Income proof: Income proof of the co-applicant

If collateral (immovable property), such as flat, home, or non-agriculture land then the following documents needed:

  • Property title deed
  • Building approved plan
  • NOC for a mortgage from a builder or society

Check the Document Type

  • Date of Birth: Birth Certificate, Passport, College Passing Certificate, Voter card with DOB, PAN Card, Driving license, Aadhaar Card
  • Residence Proof (if owned) – Electricity Bill, Municipal Tax Receipt, Share Certificate or Title Deed (with Flat No)
  • Residence Proof (for a rented property) – Registered Rent agreement (with utility bill), Landline phone bill, Bank statement, Post Paid Mobile Bill, Passport, Driving License, Voter ID, and Aadhaar card
  • Aadhaar: Aadhaar card
  • PAN Card: Copy of PAN / Form 60 if PAN not available
  • Signature: Signature verification from the bank, Passport, Driving License, and PAN Card (all IDs should match with your current signature)
  • Relationship proof: Passport, Pan, Birth certificate, Legal heir certificate, Aadhaar card, Marriage certificate, Ration card, or any other acceptable documents
  • Academic documents:
  • X, XII, UG, or PG mark sheets, degree or provisional degree certificate,  and entrance test scores
  • Registration certificates for Professionals (CA, Doctor)
  • Income proof  (Salaried) –
  • Documents to show at least 3 years work experience where ever applicable and available
  • Current 3 salary slips, Bank Statement of last 3 months, Form 16
  • Self-employed: 2 years ITR with the statement of income, Income certificate from Tehsil/collector’s office
  • Admission proof: admission letter from University/ Invite/college and Fee structure

Technical Documentation:

Besides, the above-mentioned documents, candidates must have technical documents to fetch the loan. It includes the following:

  • Title deed (all the pages to be attached)
  • Copy of approved layout plan and permissions case specific
  • Revenue document (Khata / Patta)
  • A latest Property tax receipt
  • Copy of Prior sale deeds
  • Conversion certificate
  • Non Encumbrance certificate
  • Possession Certificate (In case the flat is taken from a builder)
  • Urban clearance certificate (Case-specific)

Legal Documentation: You also need legal documentation to apply for the educational loan:

  • Sale /gift/partition deed in favor of customer – Minimum 13 years
  • Khata Certificate and extract in the name of the current owner
  • Encumbrance certificate – Minimum 13 years reflecting all sale transactions
  • Receipt of the latest property tax

Note: The requirements mentioned above vary as per the banks’ regulations.

The process to Avail Educational Loan:

Candidates are suggested to get familiar with the process of an educational loan. Here are the steps:

  • First of all, check the course which you are planning to study is recognized by the bank or not.
  • Make out the expenses covered. After that calculate the amount you can arrange on your own and the amount for which you need the loan.
  • It’s a good idea to compare the student loan offered by different banks for studying abroad.
  • After you fix the loan amount, fill the loan application form and visit the bank.
  • Once you get approval from the bank, issue the loan document which includes all the elements of the loan.
  • After signing the loan document, the bank will pay the amount (in installments or as asked by the university)

Education Loans Providers in India:

If you are looking for seeking the education loan providers to study abroad then check out the top loan providers in India:

  • HDFC Bank: HDFC Bank is one of the largest banks providing educational loans for those who want to study abroad. You can expect up to INR 20 lakhs of loan. The bank is known to provide the loan even before the student has secured admission at the university.
  • Axis Bank: Axis Bank also provides study loans and if you want a loan from this bank, then there should be a margin of 15% by the borrower in case the loan exceeds INR 4 lakhs. The bank proffers a maximum of INR 20 lakhs and covers expenses incurred on tuition, accommodation, and books.
  • Punjab National Bank: PNB offers Udaan as the education loan scheme to students who want to study abroad. The bank provides foreign education loans for students who want to acquire graduate, post-graduate, job-oriented professional, and technical courses. Make sure to show the loan margin of 15% for the loan amount more than INR 4 lakhs. The bank also offers the base rate as the interest rate on loans taken seeking education from the 200 universities all over the globe.
  • State Bank of India: SBI or State Bank of India can provide the loan up to INR 30 lakhs with a loan margin of 15%. The bank charges interest of 2% on the current base rate of SBI. Furthermore, the loan repayment tenure can be from 1 year to 15 years.

Education Loan from NBFCs:

Besides, nationalized banks, student loans can also be attained from non-banking financial companies/institutions. The NBFCs offer complete tuition fees to the students. Borrowers must provide collateral as security to the banks because the amount is usually above INR 7.5 Lacs. Check some of the prominent NBFCs (Non-banking financial companies) below:

  • Avanse: Avanse is part of the DHFL group and is a very popular non-banking financial institution in India. Student loans from Avanse cover tuition fees up to 100%  along with other expenses. The interest rates are floating and the processing fee can reach up to 1 – 2% of the loan amount.
  • Credit: It is a well-known part of the HDFC bank that offers loans to Indian students for studying abroad.  The loans are given at a fixed rate of interest and can be repaid within   10 years.
  • International Student Loan Program (ISLP): This is also a popular program designed for international students who wish to study abroad. ISLP can provide an amount of $1500 and a repayment period is up to 25 years.
  • Global Student Loan Corporation (GSLC): The GSLC gives loans to international students to seek their higher studies in the US without any co-signer.

Loan Schemes by Indian Banks:

  • SBI Global ED-VANTAGE Scheme: This loan is for those who are eager to attain a full-time course abroad. Students can acquire a loan of up to INR 1.5 crore and repay it in 15 years. The borrowers also need to provide the collateral to secure the loan and will start the repayment after 6 months of the completion of the course.
  • SBI Student Loan Scheme: This scheme provides a loan of INR 20 lacs at a nominal interest rate and can be repaid within 15 years. However, of the loan amount is above INR 7.5 Lacs, then borrowers need to furnish the collateral as security. The repayment will begin after a year of completion of the course.
  • HDFC Bank Education Loan for Foreign Education: This loan scheme is available for the amount of INR 20 lacs at a nominal rate of interest. Also, it offers tax benefits to the borrower and can be sanctioned before admission is finalized.
  • Oriental Bank of Commerce Education Loan for Study in India and Abroad: This loan facility from OBC bank will provide the loan based on the fee structure of the institute they have applied to. The best part of this scheme is that it does not charge a prepayment penalty from the borrowers and gives insurance coverage too.

Conclusion: Education Loan for Abroad Studies is a must in a maximum number of cases. The sources we have provided you are reliable. So, pursue your higher education from abroad by applying from any of the sources mentioned in this article.

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