Studying abroad may be a life-changing decision, but it is not without challenges. Those who wish to pursue higher education overseas but are having difficulty raising finances now have the option of making agreements for paying for their education. In this post, we will go over every aspect linked to schooling, such as the procedure of applying for a loan, eligibility, and the paperwork needed for it. We will also discuss several other elements of international student loans, such as Indian banks that provide international student loans and the function of a guarantor. We will cover every element for anyone searching for an education loan to study abroad.
Eligibility Criteria to Apply For the Education Loan
The first and most important step is to determine whether you are eligible to apply for international student loans. The following are the standard criteria that Indian banks use to determine a loan applicant’s eligibility:
- The applicant must be an Indian citizen.
- The applicant must be at least 18 years old, or his or her parents must take out the loan.
- The candidate must have a strong academic record.
- The candidate must have been accepted into a recognized overseas university/institution/college.
- The applicant’s chosen course of study must be technical or professional since banks favor job-related courses.
What all documents are required for applying for Education Loan for Study Abroad?
Before applying for international student loans, the applicant should be fully informed of the papers necessary to apply for an international study loan. To apply for an education loan for international study, the following documents are required:
- Filled application form
- Photographs: Passport size photographs of the applicant and the co-applicant.
- Photo ID: Photo ID of the applicant and the co-applicant. It can be a PAN card, driving license, Voter ID card, Aadhar Card, or Passport.
- Residence proof: Resident proof of the applicant and the co-applicant
- Academic documents: Mark sheet and certificates of the applicant, Mark sheet (Score Report) of GRE, GMAT, TOEFL, IELTS, etc. whichever is applicable.
- Admission proof: Admission letter shared by the university or college.
- Bank statements: Last six months bank statements of the co-applicant
- Income proof: Income proof of the co-applicant
- In the case of collateral (immovable property), it can be flat, home, or non-agriculture land the following documents are required: Property title deed Building approved plan, NOC for a mortgage from builder or society.
Technical Documents to Avail a Student Loan
- Title deed (all the pages to be attached)
- Copy of approved layout plan and permissions case specific
- Revenue document
- BDA allotment -NOC and allotment letter
- Non Encumbrance certificate
- Possession Certificate (In case the flat is taken from a builder)
- A latest Property tax receipt
- Copy of Prior sale deeds
- Conversion certificate
- Urban clearance certificate (Case-specific)
What is the Procedure for Getting International Student Loans for Studying Abroad?
- Check to see if the course you want to take is recognized by banks.
- Determine how much loan money you’ll need and how much you’ll be able to arrange on your own.
- Compare the international student loans offered by several banks for studying abroad and choose the one that best meets your demands.
- Fill out the loan application form and visit your bank after you’ve decided on a bank and a loan amount.
- When your loan is authorized, the bank will provide loan paperwork outlining the terms of the loan.
- Following the signature of the loan agreement, the bank will distribute the funds in installments or as requested by the university.
Top Education Loans Providers in India for Studying Abroad
State Bank of India
SBI provides an education loan with a lending margin of 15% up to a maximum of INR 30 lakhs for studying overseas. The interest rate paid on the loan amount is up to 2% based on SBI’s current base rate. Furthermore, the loan payback period might range from one to fifteen years.
HDFC Bank is one of the major private banks in the world that provides education loans overseas. The bank’s maximum loan amount is up to INR 20 lakhs. To prevent the last-minute rush, the bank provides study loans abroad even before the student has been accepted to the university.
Punjab National Bank
PNB Udaan is a student education loan program given by the Punjab National Bank to students studying abroad. The bank provides international student loans to students pursuing graduate, postgraduate, job-oriented professional, and technical courses. For loan amounts greater than INR 4 lakhs, the borrower must provide a lending margin of 15%. In addition, the bank provides the base rate as the interest rate on loans accepted for study at the world’s top 200 institutions.