Education Loans for Study Abroad: Top countries, Cost Details

• Engineering courses

• Medical courses

• Graduate and postgraduate degrees

• Arts

• Architecture

• Science

• Technology

• Hotel management

Education loans usually cover the following:

• Tuition fees

• Laboratory & Library Fees

• Caution deposit

• Travel

• Books and Equipment

• Projects

• Study trips.

Aside from the core countries like the United States, the United Kingdom, Canada, Germany, and Australia, only a few European countries have developed a well-balanced higher education system. Several countries, like the Netherlands, have carved out a niche for certain sorts of courses (fields), such as the automobile industry.

France is recognized for business courses, whereas Finland is known for Artificial Intelligence. When it comes to Computer Science courses, Ireland is supreme. All of the big IT companies have corporate headquarters in Ireland. These corporations have a significant influence on their higher education system. Other nations, such as New Zealand, Sweden, and Switzerland, have created great higher education systems.

Public and private banks and other financial institutions have stepped in to provide Education Loans to students from all walks of life who want to pursue their dream of studying abroad.

Financial institutions, on the other hand, have established stringent eligibility requirements, which students must meet to qualify for an Education Loan. The first and most important factor in evaluating is whether or not you are eligible to apply for the loan.

Below are the general eligibility criteria that all banks follow:

• The applicant must be an Indian citizen with strong academic records.

• The applicant must be interested in enrolling in a professional or technical program. Banks like to lend money to people taking courses that will help them get a job.

• The applicant must be accepted to an overseas university.

• If the applicant is under the age of 18, their parents will be required to take the loan in their name.

A secured education loan in the range of INR 10 lakhs to INR 1.5 crore is appropriate for students. However, it should be remembered that the specific loan amount is determined by a number of criteria, one of which is the value of the pledged collateral.

SBI, a nationalized bank, approves loans up to 70% of the collateral value, while the Bank of Baroda approves loans up to 100% of the collateral value. Private banks, such as Axis Bank, grant school loans worth up to 65-70 percent of the collateral, albeit at a higher interest rate.

In every loan transaction, the interest rate is crucial. In this scenario, the procedure of obtaining an international education loan is no exception. The majority of loan applicants base their decision to borrow an education loan on the interest rate of the particular lender's overseas education loan.

The interest rate on an international education loan is frequently the main consideration for students when choosing a lender. However, it is important to know that the interest rates on foreign education loans vary depending on various circumstances. This page highlights these variables and provides a list of the different types of lenders' education loan interest rates.

Foreign lenders charge interest rates on college loans that range from 8.5 percent to 11%. However, because the amount of the international education loan is in USD, this 8.5 percent is converted to 13.5 percent in INR.

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 little input.

The entire loan procedure takes time, from application to approval and distribution, so applying for a loan ahead of time is always a smart idea. To apply for a student loan, follow these steps:

• Consult your bank to see if the course you wish to attend is acceptable.

• Calculate how much of a loan you'll need and how much you'll be able to secure on your own.

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

• Fill out the loan application form and present it to your bank once you've decided on a bank and a loan amount.

• The bank will provide you with a loan as soon as your loan is authorized.

Before applying for a study loan in another country, the applicant must fully grasp the documents required. You'll need the following papers to apply for an education loan to study abroad:

• Application form completed.

• Photographs of the applicant and the co-applicant (passport size).

• Photo identification is required for both the applicant and the co-applicant. A PAN card, a driver's license, a voter ID card, an Aadhar card, or a passport can all be used.

• Proof of residency for both the applicant and the co-applicant.

• Academic documents-

  • The applicant's mark sheet and certifications

  • GRE, GMAT, TOEFL, IELTS, etc. mark sheet (score report), whichever is applicable

  • Admission evidence is a letter from the university or college confirming your acceptance.

• Statements of account: The previous six months' co-bank applicant's statements.

• Evidence of income: The co-proof applicants of income.

• The following papers are necessary for the event of collateral (immovable property), which might be an apartment, a house, or non-agriculture land:

  • Deed of Title to Real Estate.

  • NOC for the building plan has been authorized.

There are advantages to taking out a student loan! While repaying your college loan, you may be eligible for tax incentives. You are entitled to tax benefits from the tax office after securing a loan sanction for your studies.

The Income Tax Act of 1961, Section 80E, provides some tax benefits for a loan used for higher education. The effective cost of the loan is reduced because the entire interest can be removed. This benefit is available to both the applicant and the co-signer. This way, the total cost of the college loan might be reduced.

Applicants can return their study loans in many ways, and every bank accepts all of them. Some loans, such as school loans for study abroad, have strict payment requirements. A better understanding of student loan repayment options makes it easier for applicants. Here are some loan repayment options:

• Repay Education Loan by Cheque/DD (Demand Draft repayment)

• Education loan repayment by cash

• Automated EMI payments (ECS/NACH) of student loans

For many students, studying abroad is a dream come true. Furthermore, if you are an out-of-state or overseas student, your expenses will be significantly greater. As a result, looking into choices for Overseas Education Loans becomes increasingly vital. Loans for foreign education are available from all financial institutions such as Public, Private banks, and NFBCs.