The dream of pursuing a foreign degree always comes with a price tag. It is not like it can’t be achieved, just that you need proper planning to make it happen. One of the best and the most trustworthy option is a Foreign Education Loan.
This article will mainly focus on the things that you must consider while you apply for the overseas education loan-
- The course, university and country you’re applying for
- Terms and conditions of the financial institution- Nationalized, Private or NBFC you’re approaching for study abroad loan
- The amount of loan that you’d need; including tuition as well as living expenses
After you’ve done thorough research from your end, you must also acknowledge the steps that are involved in the education loan process. This ensures that you’ve no two thoughts regarding the process at any point. At the same time, you can be ready with all your queries and documents. The first step concerning your overseas education loan is-
Eligibility Criteria
There are certain standards or the basic requirements of the financial institutions that must be met with.
- Your citizenship. Any financial institution validates whether you’re a citizen of India or not at the first hand.
- Your academic record. A good academic history can mean different to different banks. Banks consider students who have secured at least 50% in their higher secondary and/or graduation period.
- Course and employment opportunity. Banks are more interested in sanctioning education loan for courses that are job oriented.
- You’re likely to get faster education loan if you’ve secured admission in a reputed university or a college.
Profile Assessment
Secured education loan is approved by nationalized, private as well as NBFCs based on collaterals and other documents. Banks initialize overseas education loans when you’ve filled education loan application. Nowadays, education loan application form is available on the bank’s website which saves a lot of time. Your profile is assessed by the bank against the following things-
- The application form that you’ve filled
- Passport-size photograph of the applicant and the co-applicant
- Identity proof such as PAN card, Aadhar card, Voter Id etc
- Percentage
An applicant must have secured at least 60 percent in previous qualifying examination. There should be less backlogs and there shouldn’t be any education gap - Entrance exam score
The applicant should provide scorecard of the entrance exam faced, i.e. GRE, GMAT, TOEFL, IELTS etc. when applying for study abroad loan - Admission letter
Make sure that you’ve confirmed and received your letter of admission from the foreign university that you’ve applied to - Bank statement
Bank statement of the applicant or co-applicant of the last 6 months. It is a document summarising your financial transactions - Collaterals
Document related to any immovable asset such as residential house, open plot, flat, shop is accepted as collaterals
Document Submission
After you have arranged all your documents, approach your bank branch and submit them. Bank officials validate all your documents thoroughly with the originals and revert.
Well, now that you have understood the process till the submission of documents, we will pause here for the information to sink in. Let us take 1 part at a time.
The upcoming process to apply study loan for abroad studies will be explained in the next part of the article, which will be published soon.
So, keep following this page to get information on loan sanctioning process, mortgage process and finally the loan disbursement and its ways.
Read more: The Knowledge Guidebook on Overseas Education Loan
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