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Education Loan for Masters

Updated on Nov 15, 2022
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Knowledge is the most significant return on investment! Gaining the information at a top-tier, premium university would undoubtedly catapult your career to new heights. Unfortunately, attending a renowned college usually comes with a high cost. Studying at a famous college in another nation is substantially more expensive.

Pursuing an international master's degree from an international college not only expands your career opportunities but also gives you a once-in-a-lifetime opportunity. With the rising number of students interested in studying abroad, many are considering applying for an overseas education loan to help them pay for their master's degree at an international university.

Many financial institutions in India and overseas provide foreign education loans. Education loans to study in another country are available from private banks, nationalized banks, foreign lenders, and non-bank financial firms (NBFCs).

Table of Contents

1 Eligibility

Education Loans for master's degrees are available from public and commercial banks, as well as other financial organizations, to students from all walks of life who wish to follow their ambition of studying abroad.

NBFCs, on the other hand, have set strict qualifying criteria that students must satisfy to be eligible for an Education Loan. The first and most significant element to consider is whether you can apply for a loan for your master's degree abroad.

2 Loan amount

Secured education loans of up to INR 1.5 crore are available to students who wish to pursue a master's degree in a foreign university or educational institution. The loan limit may grow or decrease depending on the applicant's and co-profiles, the applicant's country, course, and other criteria. Students can apply for overseas education loans worth up to INR 45 lakhs without putting up any collateral.

Bank of Baroda provides loans up to 100% of the collateral value, whereas SBI, a nationalized bank, approves loans up to 70% of the collateral value. Axis Bank, for example, offers student loans valued at up to 65-70 percent of the collateral, however, at a higher interest rate.

3 Interest Rates

In each loan transaction, the interest rate is critical. In this scenario, obtaining an international education loan is no exception. The majority of loan applicants choose an education loan based on the lender's global education loan interest rate. The interest rate is often the most crucial criterion for students when choosing a lender for an overseas education loan. However, it's essential to remember that interest rates on overseas education loans vary depending on various criteria. This page seeks to clarify these points while also providing a current list of school loan interest rates from multiple lenders.

4 EMI Calculator

The EMI Calculator is a quick computer tool that allows you to calculate your education loan's Equated Monthly Installments (EMI).

While the traditional and standard calculation technique is tedious, time-consuming, and arbitrary, with online EMI calculators, the activity is completed fast, accurately, and with few inputs.

5 Loan Process

Obtaining an education loan that covers your essential expenditures is challenging and subject to several requirements. Multiple constraints apply to most banks, NBFCs, and private foreign lenders, including tight eligibility requirements, a time-consuming application process, and an uncertain loan sanction. In most circumstances, the loan amount is less than what you need to cover your costs. Once you've gotten through that, you'll run across further issues.

They also want reassurance that their interests will be protected. If you're going to a college your sponsor approves, your loan will be sanctioned. The loan sanction procedure takes over a month for most banks and NBFCs, and a lot of documentation is involved.

The entire loan process takes time from application through approval and distribution, so applying for a loan ahead of time is always a good idea. Follow these steps to apply for a student loan:

  • Check with your bank to verify if the course you want to take is approved.

  • Determine how much of a loan you'll require and how much you can acquire.

  • Compare the student loans available for studying abroad from several banks and select the one that best meets your needs.

  • Once you've settled on a bank and a loan amount, fill out the loan application form and deliver it to your bank.

  • The bank will provide you with a loan once your loan is approved.

6 Tax Benefits

Taking out a student loan has several benefits. After receiving loan approval for your education, you are eligible for tax advantages from the IRS. You may qualify for tax benefits while repaying your college debt.

Section 80E of the Income Tax Act of 1961 gives various tax advantages for a loan utilized for higher education. Because the total interest may be erased, the loan's effective cost is decreased. The entire cost of the education loan might be reduced in this way. Both the applicant and the co-signer are eligible for this benefit.

7 Repayment

Applicants can repay their study loan in various methods, all of which are accepted by every bank. Some loans, such as study abroad loans, have onerous repayment restrictions. It is simpler for applicants if they are better aware of their student loan repayment alternatives. Here are some possibilities for repaying your loan:

8 Loan Providers (banks, private companies, NBFCs)

Studying abroad is a dream come true for many students. Furthermore, your costs will be much higher if you are an out-of-state or international student. As a result, researching Overseas Education Loans options becomes increasingly essential. All financial organizations, such as public and private banks, as well as NFBCs, offer loans for international study.

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