Education Loans for Study Abroad: All Details in One Place

Due to the possibility that a sizable part of individuals cannot afford to pay for their own education, there is a huge demand for the finest education loan for study abroad in India for programs in nations like the UK, Canada, USA, Germany, Ireland, etc.

Best Education Loan for Study Abroad in 2024

Financially strapped individuals who have always wanted to study overseas can now apply for financing to support their academic endeavors. The purpose of this post is to explore the complexities involved in obtaining the best Education Loans for Study Abroad in India.

We will examine all aspects of student loans, from the application procedure and qualifying requirements to the necessary paperwork. We will also discuss the role Indian banks play in providing financial support and the importance of guarantors.

Students may gain a lot from an education loan for study abroad options in India since it offers several benefits. The following are some main advantages:

• Global Education Access: Students may enroll in esteemed overseas colleges with the help of education loans, giving them access to a wide range of academic programs and a top-notch education.

• Extensive Coverage: By paying for a variety of charges such as living expenses, travel, housing, health insurance, and tuition, these loans free up students' time to concentrate on their studies rather than worrying about money.

• Flexible Repayment Options: A lot of student loans come with flexible repayment schedules, such as grace periods that let borrowers begin making payments after graduating from college and finding work.

• Reduced Interest Rates: Education loans often have lower interest rates than other loan kinds, which makes them an affordable financing choice.

• Benefits for Taxes: In many nations, the interest paid on student loans is deductible from taxes, which helps lessen the borrower's total financial burden.

It's crucial to have all the required paperwork together in order before submitting an application for an education loan for study abroad. The following is a list of the paperwork needed to get an education loan for overseas study:

• Completed Application Form: Fill out and sign the loan application that the bank sends you.

• Images: Full-length passport photos of the applicant and co-applicant.

• Picture ID: A current picture ID for the co-applicant and applicant. Valid identification includes:

  • PAN card

  • Driving license

  • Voter ID card

  • Aadhar Card

  • Passport

• Proof of Residence: Evidence of the applicant's and co-applicant's residency.

• Academic Record: The candidate's grades and diplomas.

• Results from tests such as the GMAT, GRE, TOEFL, IELTS, and so on, if relevant. Major considerations for loan acceptance include the GRE score, professional experience, and overall academic status.

• Entrance Documentation: A letter of admission from the college or university where the candidate was admitted.

• Financial Statements: The co-applicant's latest six months' worth of bank statements.

• Income Proof: The co-applicant's proof of income. The co-applicant's assets, location, and financial stability are important considerations for approving the loan, thus this is very important.

•  Collateral Documents:

• Legal proof of ownership for the property being used as collateral is provided by the property title deed.

Education loan for study abroad is provided by all major banks; however, the terms and conditions vary across them. It's a wise decision to compare several possibilities to make sure you choose the most suitable and reasonably priced study abroad option. IDP has partnered with some of the largest banks to streamline and simplify the application process for education loans for abroad studies by the Indian government. SBI is the most recent bank to collaborate with IDP.

Which costs associated with studying overseas are paid for by an education loan?

Your course price is the main expenditure you should budget for. To guarantee that you are comfortable while studying and to transport you to your new university, there will be several additional costs. Which of these costs would your educational loan for studying abroad allow you to pay for? This is a compilation

• Flight ticket cost

• The tuition fees for the entire course

• Any fees charged by the college for the use of the library, lab etc.

• Examination fees

• Any equipment/ materials you need directly for the course including a laptop within reasonable cost.

• Books that are essential for the coursework

• Living expenses to address your day-to-day costs

• Your health insurance

Here's a quick glance at the loans that the major providers have to offer:

1. HDFC bank:

   Your whole out-of-country educational expenses are fully covered by the HDFC Bank study abroad loan, with no additional fees. Even their no-collateral, unsecured loan might pay for a sizable amount of your expenses. More than 35 nations can use the loan for educational purposes, and 950 courses are stated as being covered.

   Maximum loans without collateral of up to Rs 45 lakhs

   There is no upper limit to secured loans.

   includes the cost of tuition, living expenses, travel, test, lab, and library fees, as well as supplies (computer, books, uniform, and equipment).
   
   

2. ICICI Bank

   ICICI might be a suitable lender option if you are enrolling for a postgraduate degree and do not have a co-applicant with a reliable source of income. Even if one of the co-applicants is not employed, they nonetheless provide loans to those with a two-year experience period. For students pursuing further education in the UK, Germany, or Canada, the bank also offers specialized loans.

   Amount of unsecured loan: up to one crore at most secured a maximum loan sum of two crores.

   Exclusive deals for CXOs and government workers. Includes costs for tests, books, computers, equipment, uniforms, libraries, labs, travel, student insurance, study materials, caution deposit, and refundable deposit.

3. SBI:

   SBI's Global Ed-Vantage is a complete package that includes loans for graduate and postgraduate education along with certificates and degrees. Approval can be granted even before your i20 or visa arrives, since processing and disbursal happen very quickly. To support your secured loan, the bank also takes third-party collateral. Your family's financial situation may be slightly more freed up than you would have anticipated if you were to use any scholarships you may receive toward the margin value.
   

   Minimum amount to be lent: Rs. 7.50 lakhs/ Maximum loan amount of Rs. 1.5 crore pays for the cost of tuition, exams, labs, libraries, travel, study materials (books, computers, equipment, and uniforms), and projects or study tours that are necessary to pass the course (with some restrictions).

Question 1: How to Get an Education Loan for Study Abroad in 2024?
Answer: To get an education loan for studying abroad, research and apply through banks or financial institutions that offer international education loans, ensuring you meet their eligibility criteria and have the required documentation. Compare loan terms and interest rates to find the best option for your needs.

Question 2: List of approved foreign universities for education loans abroad?

Answer: The list of approved foreign universities for education loans can vary by bank and loan provider. Generally, major banks and financial institutions approve a wide range of universities globally, including:

• Harvard University (USA)

• University of Oxford (UK)

• Massachusetts Institute of Technology (MIT) (USA)

• University of Cambridge (UK)

• Stanford University (USA)

• University of Melbourne (Australia)

• National University of Singapore (NUS) (Singapore)

• ETH Zurich (Switzerland)

• University of Toronto (Canada)

• University of Hong Kong (HKU) (Hong Kong)

For a specific and updated list, it's best to check directly with the bank or lender providing the education loan.

Question 3: Which bank is best for an education loan for study abroad?
Answer: The best bank for an education loan abroad typically depends on factors like interest rates and repayment terms, but institutions like SBI, HDFC, and ICICI are popular choices in India. It's essential to compare their offerings based on your specific needs and the destination country.