Studying abroad is often an excellent opportunity which can act as an enormous stepping stone professionally. A whopping number of Indian students are choosing to pursue education abroad. But the value of education and living expenses in foreign countries are often prohibitively high which lets many students recoil from even considering this chance. In such a situation, an education loan plays a crucial role to bridge the shortfall. Most banks and Non-Banking Financial Companies (NBFCs) are offering Education Loan in India for study abroad for pursuing various degree and diploma courses in foreign countries. Therefore, it's become very easy to urge an education loan. In today's scenario Private banks and NBFCs have become willing to give education loan without collateral based on student profile and Co-signor profile.You simply got to know the method of applying for such a loan.
Education loan is given for the aim of pursuing a tutorial degree abroad and is provided by most banks and NBFCs (Non-Banking Financial Companies). An education loan covers all expenses including course fees and other associated expenses like living (hostel and mess) charges, books and supplies, exams, and other miscellaneous charges.
Any student who is a resident of India and has secured admission into a university/college approved by any competent authority in India or abroad is eligible for an education loan in India for study abroad. the overall eligibility criteria are as follows:
- A student must be seeking admission to professional, technical, or the other course of studies. It varies from bank to bank; most financial institutions require that the course that you're taking a loan should cause you to skilled enough to urge employment or improve your prospects for getting a far better paying job.
- Students must have secured admission during a recognized foreign university/institution.
- Students’ age must be above 18 years
In case the scholars don’t have any credit history, income, and asset details of the co-applicant, in most cases of oldsters, also are required.
Cosigner eligibility criteria.
The cosigner should be a direct relation of the student. He should have a high CIBIL score as well as IT returns filed for the last three years. Generally banks/NBFCs prefer to Have a cosigner who is salaried. The general FOIR is approximately 50% to 70%.
Security required.
Many financial institutions especially nationalized banks while you provide collateral security as mortgage for education loan in India for study abroad. Collateral can include residential property, commercial property, or any kind of liquid assets like pigs deposit mutual fund shares etc
For graduation: Degree - Technical or job oriented professional courses affiliated by a competent authority
For Post-graduation: MBA, MS, MCA, any PG diplomas and courses accredited by a competent authority
Generally, banks offer a maximum of Rs. 2 cr for education loans in India for study abroad.
Private banks provide unsecured education loans up to 40, lakhs mainly based on the student profile. They have a list of universities whom they fund 40 lakhs without collateral.
However, there are many NBFCs (Non-Banking Financial Companies), like Incred, Auxilo, Avanse (a subsidiary of DHFL), and Credila that give collateral-free education loans up to 40 Lacs. Normally such loans are sanctioned for meritorious students getting admitted to preferential list colleges.
Students are going to be required to point out a number of the below-listed documents.
- Identity proof
- Driving license
- Passport
- Pan card
- Voter’s card
- Aadhar card
- Address proof
- Passport
- Ration card
- Aadhar cared
- Voter’s ID card
- Telephone/water/electricity bill
- Additional documents like scorecard of GRE / GMAT / TOEFL, letter of admission from an establishment, class X, XII and graduation (if any) mark sheets and spending certificates, visa documents, etc.
The tenure of education loan usually ranges from 5 to 7 years after the commencement of repayment and may be extended beyond that, counting on the bank’s guidelines. Some banks issue education loan which will be repaid within 10 years. If the loan amount exceeds Rs.7.5 lacs, the repayment period could also be extended up to fifteen years too. Additionally, some banks provide a further moratorium period of 6 months to 1 year after the completion of the course. This helps the student in getting time to search for employment post-course completion. We have listed a complete guide about education loans but still, if you need assistance, simply connect with Eduloans. Add paragraph text here.
