Education Loan for Abroad Studies, Eligibility, Documents Required
Important details about the Education Loan for Abroad Studies are given here. Read this article to learn about education loans, their types, and eligibility criteria.
Supriya Shrivastava17 Apr, 2025
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Education Loan for Abroad Studies: A university degree changes people's views, releases potential, and greatly increases career possibilities. Many students may not be able to afford this goal due to the rising costs of getting an excellent education abroad. Education Loan for Abroad Studies helps in crossing this financial gap by giving students access to finance so they can study in renowned international universities and get the specialized education necessary to succeed in employment today.An
Education Loan for Abroad Studies is a type of assistance that helps with various kinds of costs, including study materials, travel, accommodation, and tuition. Education loans turn dreams into reality by making it easier to enroll in renowned international universities. It is crucial to understand the difficulties of student loans before applying for one to study abroad. This article will cover all about Education Loan for Abroad Studies, helping students to make wise choices.What are education loans for foreign education?
Education loans are financing options created specifically to help students pursue higher education. Banks offer money to pay the costs of studying recognized full-time graduation, post-graduation, or professional courses at renowned international universities under the education loan for abroad studies schemes. Study loans for international students help pay for charges such as tuition, books and supplies, exam fees, suitable accommodation during the study term, and travel costs, among other things, to ensure the students' continuous growth.Eligibility criteria for applying for an Education Loan for Abroad Studies
Students must meet the following eligibility requirements to be eligible for an Education Loan for Abroad Studies:Essential documents required for an education loan
The method of submitting documents is straightforward because it is entirely online. The loan amount is approved without the need for security, which reduces the number of documents required for the loan application. The following documents are usually required when applying for a student loan to study abroad:- A filled-out application form
- Passport-size photos
- Residence proof (Passport, Aadhaar Card, Driving License, or Voter's ID Card)
- Academic documents
- Scholarship documents, if students have any
- Proof of admission from one or more universities
- 8 months of bank statement of co-applicant
- Income proof of co-applicant
- Collateral (all relevant documents)
- Mark sheet of the 12th exam
- Mark sheet of subsequent years of education, e.g., BA, BCOM, BSC, etc.
- Mark sheet of any entrance exam taken e.g., GMAT, GRE, etc.
- Mark sheets of English eligibility tests such as IELTS
Types of Education Loan for Abroad Studies
There are two kinds of student loans, secured loans, which are given with security, and unsecured loans, which are given without it. Students have to understand the differences between the two to make a wise choice about which one best meets their needs.Secured education loan
- It requires the borrower to provide any security that the loan is issued against, such as real estate, a savings account, an insurance policy, etc.
- Lower interest rate.
- There is a good possibility of approval.
- Extended payback duration.
- The loan amount might be increased.
- No payback when the student is studying.
- Approval is granted without regard to parental income.
Unsecured education loan
- This loan can be granted without the borrower needing to provide any collateral.
- Higher interest rate compared to a secured loan, usually by 1.5% to 4%.
- It is more riskier for the bank, and getting a loan without collateral from them is difficult.
- Repayment time is a little shorter.
- There will be some payments during the study duration.
- The approval process requires the income of the parents.
How to Apply for an Education Loan for Abroad Studies?
It is usually good to apply for a loan a bit early because the whole loan process takes time, from loan application to approval and disbursement. Follow these steps to apply for a student loan.- Verify whether or not the banks will accept the course the student plans to take.
- Calculate the total number of loans the student needs and the amount they can secure on their own.
- Analyze the student loans offered by several banks for study abroad, then select the one that best suits their requirements.
- Complete the loan application and visit their bank after deciding on the bank and loan amount.
- The bank will provide the student with loan documents containing all of the loan's parts as soon as the loan is authorized.
- The bank will release the funds in installments or as requested by the university following the student's signature on the loan agreement.
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Education Loan for Abroad Studies FAQs
Q1 - What is covered by an education loan for abroad studies?
Ans - Students may face several expenses when they are studying abroad. Here is the following list of costs that an education loan would pay to ensure that the student has financial support:
1. Fee for Tuition
2. Flight tickets
3. Cost for insurance
4. Exam, reference, and lab fees, if applicable
5. The cost of books, supplies, uniforms, etc.
6. Costs of living
Q2 - How do I receive my education loan for abroad studies
Ans - Tuition loans are paid directly to the university where students will be studying, according to the demand letter. Loans for additional expenses are paid back during the study abroad program in installments.
Students also have the option to receive the whole study abroad loan amount in a single installment. Banks want verification of expenses to confirm that the loan funds are used for educational purposes.
Q3 - What is the deadline for repaying my student loan for studying abroad?
Ans - The study time, the grace period (which may vary from six months to a year, depending on the bank), and the payback period make up the total duration of an education loan.
Q4 - What is the minimum bank balance required to study abroad?
Ans - Bank statements verifying the student has a specific amount of money in their account for 28 days are usually required when they apply for a student visa to study abroad. The student's living expenses and tuition should usually be covered by that amount. Proof of finances is required while planning to study abroad, and an Education Loan Sanction Letter from RBI-regulated banks is enough.
Q5 - Can I study abroad on a 100% loan?
Ans - Getting a 100% loan to study abroad without any financial help is not easy. Certain banks, including well-known banks, NBFC, and other banks, provide programs that cover a significant portion of the expenses almost entirely.
Q6 - Can I get a 25 lakh education loan without collateral?
Ans -The flexibility in loan amounts offered by non-collateral education loans is one of its main benefits. Students do not need to provide collateral to obtain up to Rs 50 lakhs to finance their education.
Q7 - Is it risky to take a loan and study abroad?
Ans- When offering student loans, both lenders and borrowers face significant risks. Repayment of student loans is less assured than for other types of loans since it is mostly dependent on the probability that students will pass their courses and secure employment.
Q8 - Can I get an education loan without my parents' income?
Ans - A secured education loan is the first possibility, in which a student offers an asset to secure the loan amount. Because the collateral acts as a guarantee for repayment, the requirement for parental income is removed.
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