Education Loan for Abroad Studies, Eligibility, Documents Required

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 

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What are education loans for foreign education?

Eligibility criteria for applying for an Education Loan for Abroad Studies

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Essential documents required for an education loan

• 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

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?

• 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.