foreign-education-loan

Study Abroad Scholarships: How to get it?

International students have a big hurdle of managing the finances while studying abroad. Not only the tuition fees, but rents, food, transportation and what nots only add to the expenses that are already high in a foreign country. Study Abroad Scholarships are the best way to tackle them. Unlike the Student Loans, these do not need a repayment. Before the admission process begins, you should check how to apply for scholarships to study abroad.

We are here to help you with that.

How to Get Scholarships to Study Abroad?

Here is how to get and apply for Study Abroad Scholarships:

1. Reach to the Contacts for Study Abroad Scholarships:

Ask the professionals. Before you apply for scholarships, you will need to find one. Reach to the professors or the academic advisors you can take the help from. Many a times, you will even not be aware of some of the study abroad scholarships that exist. That is why it is important to contact the people who are in the business already.

2. Research the Study Abroad Scholarships Online:

It is also important to do it by yourself, too. Because only you would know what are your needs and find the right one for you among the List of Scholarships. For that, you can check out the below given list of Scholarships:

3. Contact the Organisation:

The best way to know about any Study Abroad Scholarships is to reach to the provider directly. Most of them have their own official websites. You can find every little detail and how to apply for scholarships there. It will also make an impression on the providers that you are keen and serious about the scholarship. There are innumerable foreign universities offering scholarships in various study abroad destinations.

4. A Well-Crafted CV for Study Abroad Scholarships:

The most important part is how you write it! Generally, a scholarship CV is different from a regular CV. When it is a foreign country you are applying to, the modifications are even more necessary. To apply for scholarships, make your CV in a way that it talks about you being the right candidate for the scholarship, and how the money invested in you by the organisation is justified. Mention why you have chosen that specific University if to study abroad the provider is a University. Make sure you refer to some CVs from the country you are going to before drafting one for yourself.

5. Grades are important for Study Abroad Scholarships:

The most important thing for any scholarship is your academics. The provider needs a solid proof that you are the most eligible candidate for the scholarship and not the other thousands of the applicants who have applied with you. Consistent grades tell the provider that you are serious about the studies and will be a promising student going with the further studies in abroad.

Apart from CV and Grades, your application should show you passion for study, in that particular subject of field, and why you are the most deserving candidate for the application.

6. Apply for Scholarships:

Once you have done all the hard work trying to find all the options, now comes the most important aspect: Actually, applying for the scholarships. Be aware of the deadlines, the documents required to apply for scholarships, and make sure you have everything in place before initiating the application process of study abroad scholarships.

If you are applying to multiple organisations, make sure you make a customised version of application for each submission. Do not Copy-Paste.

Hope this article was helpful in knowing how to get scholarships to study abroad.

There are many popular scholarships to study oversea, you just need to research on it properly and study for it to make your foreign education a success without any issues.

Follow our page for more such information on overseas education loans and study abroad destinations as well.

Avail Study Abroad Loan from the Best Banks of India

Read on to understand about the various banks offering some of the cheapest education loans in India.

There are several financial institutions offering education loan to students to help them achieve their academic ambitions of studying abroad.

Things to consider before applying for an overseas education loan.

Types of Overseas Education Loan
Rate of Interest
Marginal cost
Processing Fee

Let us take a look at some of the cheapest education loans in India offered by top loan providers:

1. State Bank of India

SBI offers some of the cheapest education loans in India via the SBI Student Loan Scheme

Under the list of approved universities loans are available for all professional, graduate and post-graduate courses
Loan amount of 30 to 40 lakhs can be availed
Repayment tenure – 10 to 12 years and can extend up to 15 years (depending on the case)
Loan Margin Requirement – 15%; interest rates – up to 2% over the base interest rate offered by SBI
Moratorium Period – Complete interest is could be paid during the moratorium period; principal payments are made after the loan tenure begins

2. Axis Bank

Another bank that is considered among the best bank for overseas education loan is Axis Bank that offers innumerable advantages. Have look at the pointers below.

Axis bank offers hassle free loans for courses that are professional, and career-oriented like MBA, MS, etc. which are from the approved universities
Loan amount of upto 20 lakhs covering everything from tuition to hostel fees
Co-applicant – Mandatory to have a parent or guardian (collateral is optional in most cases)
Loan margin requirement –
5% For Loans Above 4 Lakhs
Loans Below 4 Lakhs Are Exempt
Interest Rates Can Start as Low As 8.7%
Special Provisions for Women and Girls
No Processing Fees
Loan Approval Period – 15 Days

3. HDFC Bank

HDFC being one of the India’s old banks has always been on the forefront in offering study abroad loans. Take a look at the benefits it offers:

HDFC Offers Overseas Education Loan to over 950 Professional Courses Across 36 Countries at Approved Universities
Loan Amount of Upto 20 Lakhs
Flexible Provisions Available for Security Deposits, Co-Applicants or Collaterals
Ages Limit – 16 To 35 Years
Loan Margin Requirement – 0%; HDFC Pays Up to a 100% of the Necessary Amount
Processing Fee – 1.5%
Pre-Approved Loan Applications (Conditional)

5. Bank of Baroda Bank

Under the Baroda Scholar scheme BOB offers education loans in India. Take a look at the benefits it offers:

BOB offers loans to all the courses from the recognized institutions in several countries offering professional and technical courses
Loan Amount of Upto 20 lakhs
For loans above 4 lakhs third party guarantees or collaterals are required
Repayment tenure – over 10 years for loans of up to 7.5 lakhs and 15 years for higher loans amount
loan margin requirement – 15%
women get a discount in the interest rates
Moratorium Period – Complete interest is could be paid during the moratorium period; principal payments are made after the loan tenure begins

The documents required by all the banks in general for the application of overseas education loan are as listed ahead. Read on.

Documents Checklist

Hardcopy or softcopy of all the documents mentioned below is mandatory to be submitted along with the loan application form.

Copy of the offer letter or letter of acceptance received from the admitting education institution.
Academic marksheets and/or diploma of SSC, HSC and graduation, if any.
A copy of first page of bank passbook
Two passport size photographs as per the dimension given
Residential proof such as Passport or Aadhaar card or Driving license, etc.
Income proof of the applicant if employed such as the pay slips, offer letter from previous and current employer, service certificate, if any.

Be careful not to mislead the bank with information. Remember, honesty is the best policy.

For any assistance related to education loan or overseas education, you may contact an experienced loan advisor or studies abroad consultants.

Good luck!

A Guide on the most Satisfied mode of Funds for Studies Abroad: Scholarships

The dream to graduate from a foreign university is highly mushrooming among the students with the increased possibilities to study abroad. For students those aren’t aware about the various kinds of funding options for overseas education loan, this article will surely help you through.

Read on.

Indian Government Scholarships for Overseas Education:

To encourage students to excel academically in studies abroad the Indian Government has made special provision for them.

This is offered on merit based as well as student based – caste specific, minority religion specific, family occupation specific and university specific that are under specific QS World Ranking.
These scholarships are strictly not applicable for admissions to Undergraduate or Bachelors courses.
The students have to apply to these scholarships themselves.
The time required to receive these scholarships or grants is long, at times it takes a year too.
The students have to be highly dedicated to take regular follow ups and updates for their applications in order to get the process accelerated at times. There are students who could manage getting their scholarships with regular and personal follow-ups.
The number of scholarships awarded is less in comparison to the number of applicants; hence it is time consuming process for the officials to filter the best profiles.
Herein, the first priority will be given to students who have received offer of admission or admit letter
Second priority will be given to students who have cleared GRE or GMAT or TOEFL or IELTS etc.

Herein, there are two categories based on the receipt of funds or grants.

Interest Subsidy for Education Loan: The student has to apply for loan through these scholarships; where the simple interest to be paid during the moratorium period is paid by the government.
Financial Assistance: The students receive financial assistance towards their tuition fees.

Funding Institutes that offer Scholarships:

The students should apply for the scholarship themselves.
There are specific deadlines that have to be considered while applying.
These scholarships offer financial funds for specific listed universities, specific courses like Arts and Culture, Environmental Science, International Legal Science and so on.
These scholarships are country specific too – i.e. US and others.
The financial awards can cover the entire tuition fees, living expenses, air fares, health insurance and other expenses also, i.e. Stanford Reliance Dhirubhai Fellowship Scholarship for Masters in Business and MBA from Stanford University USA.
There are a few scholarships that may not cover all the other expenses, but offer the entire tuition fee only, i.e. TATA scholarships.

Universities themselves offer Scholarships to students:

The scholarships that are funded by the government of the country – give a by-default provision of funds that may be for the entire tuition fees or partial or discount towards the tuition fees. In some categories, the scholarship awards the entire expenditure including the tuition fee, living expenses, air fare, other educational expenses and accommodation too.
The scholarships that are funded by the university directly also there are some Foreign Universities Offering Scholarships – either directly offer or ask for acceptance from the student for the financial awards or grants given towards the tuition fees and or other expenses.

Majorly all countries and universities have their merit based scholarships to be offered for academic excellence as well as extracurricular excellence. In of the case, the student should be focused to achieve academic excellence till the end and have a focus of future career directives.

The students shouldn’t be disheartened if they aren’t eligible to apply for any of the scholarships. Students can always look forward to different kinds of Overseas Education Loan. The ease to apply for education loan is also now easier but it also requires dedication and career focus.

Overseas Education Loan: How to Avoid Rejections

Are you looking for education loan for abroad studies? Before you apply for an education loan online or offline, you must know the eligibility criteria and the documents required to be submitted, as well. Given in this article is a brief account of these aspects. As you read further, you’ll also get to know the reasons for the rejection of loan application.

Complete assistance for overseas education loan process is given by the overseas education consultants to avoid any kind of discretion. The first step concerning your overseas education loan is that some documents are assessed by the banks.

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 % in the previous qualifying examination with fewer backlogs.
Entrance exam score
Admission letter
Bank statement
Collaterals

Banks might reject your loan application under the following cases:

If you’re an Indian student applying for study abroad loan then your sponsor must be an Indian citizen.

Parents must have an annual income of 5 to 6 lakhs for the approval of overseas education loan and visa as well. If the income is not as per the said criteria of the banks, the application is refused.

If your property is under dispute, it is an unconstructed land, or the property is not legal.

You are not likely to get education loan if you have too many backlogs and there is an academic gap of more than two years. Medical emergency cases might be considered for loan upon displaying of genuine medical certificates.

Low CIBIL score. What is it? Credit or CIBIL Score is a three-digit numeric summary of your credit history found in the CIBIL Report. CIBIL score will be in the range of 0 to 900. A score between 300 and 600 is considered a poor credit score.

Defaulting of EMI. After termination of the moratorium period, student should start paying off the EMI calculator for the education loan. If you miss paying EMI for one initial month it is considered as delinquency. No EMI payment for more than 90 days, is a default.

It’s good to be aware and take a precautionary step rather than knowing about the things at the nick of time. You may consult an education loan advisor to know about the best bank for overseas education loan. Overseas education consultants provide free of cost services such as applying for a university or specific course abroad, scholarships, visa etc.

Stay connected for more such articles.

Overseas Education Loan – Check out for the Application Procedure

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.

How Tax Plays an Important Role in Overseas Education Loan

As there is an inflation in the cost of education is significantly higher than the overall consumer price inflation, overseas education is becoming pricier with each passing year. In such a situation it is very challenging for parents to fund the education of their kids. So, many of them have to resort to overseas education loan being the best funding options for overseas education.

This education loan can be availed only by the person who has an offer letter. Do not think that once you apply study loan for abroad studies means, it’s a debt for the next 7 to 15 years. There are perks to it as well.

A study abroad loan not only helps you in financing your overseas studies, but it even helps in saving a lot of tax as well.

Now you might be wondering how? This article is your answer.

The interest paid on an education loan and is repaying the same, then that education loan is allowed as a deduction from the total income under Section 80E. However, the interest part of the EMI is eligible for the deduction provided. The principal part of the EMI will heed you no tax benefit for.

Essential Conditions for Claiming This Deduction Are:

Who can claim this deduction?
The person who has taken the loan can claim this tax deduction and no one else. This is not applicable for any other type of Taxpayer as well. This loan must be taken for education purpose of the student holding offer letter only.

Where can this loan be taken?
The overseas education loan must be taken from recognised financial institutions like Nationalised Banks, Private Banks and NBFC (Non-Banking Financial Company). Loans taken from any other non-trusted financial institutions, family or friends do not fall into this category of Section80E.

The purpose of the loan
This loan amount is granted for education in foreign countries. The amount granted for studies should not be utilised for any other purpose. All the loan requirements must be fulfilled for the smooth processing of the loan process. UG and PG Diplomas, Certificate Courses, Graduate and Postgraduates applicants can avail this loan and be benefitted.

Deduction amount
In case of an education loan, the applicant gets the privilege of the moratorium period where the applicant or the co applicant pays the Simple Interest, the moment the loan is disbursed. This Simple Interest may or may not be paid every month which is purely dependent on the wish of the applicant or co applicant. The tax deduction is allowed on this total interest part paid every month. In case the applicant opts to pay the Simple Interest only then the deduction can be claimed. This deduction is not applicable on the EMI. However, a certificate from the bank is required to segregate the principal and the interest amount of the education loan paid by the applicant during the financial year. The total simple interest paid will be allowed as a deduction and no tax benefit is allowed for the principal repayment.

Period of deduction
The best part is that, as soon as the applicant pays the Simple Interest, the deduction for tax can be claimed from the year in which the repayment of the loan began. It is available only for 8 years. This means that tax deduction will be allowed for 5 years the complete repayment of the loan is done in 5 years only, and not 8 years.

This article shows that no other loan gives tax benefit, but education loan does and eases your burden of loan repayment to a certain level. Loan being the primary option for overseas expenditure, you can consider Foreign Universities offering scholarships as well for your secondary expenditures.

The Not So Frequent but Very Essential Questions on Study Abroad Loan

Hello Reader,

The fact that you have landed on this page shows that you are interested in knowing the minute details of overseas education loan. This obviously means that you have made up your mind to achieve a foreign degree and are looking out for student loans for studying abroad.

This article will focus on those questions which are not asked very commonly but are very essential to understand the depth of the education loan process. Having complete clarity of any process helps you gain confidence in it.

So, read on and know the answers to the questions that you might have never thought of, or would have thought but never asked.

Question: 1

Can you explain what does it mean by interest free or moratorium period? Also, what happens if there is a break in my studies?

Answer:

The time given by the finance institution which lends you loan for abroad studies before you start the repayment of the loan is known as the Moratorium or Interest Free Period. This is basically Study Period + Job Search Period in which you need not pay the EMI to the bank. You can start paying the Simple Interest of the Loan Amount on the monthly basis which will heed you tax benefits as well.

In case there is a break in the study period, it is entirely up to lending bank’s discretion on whether to add a few months to the holiday period or to let it be the same. Again this depends on the type of loan availed as well; Secured Overseas Education Loan or Unsecured Overseas Education Loan.

Question 2:

To avail of an overseas education loan is it necessary to have an account with the bank?

Answer:

In the previous day, when the study abroad loan was not this common, the banks had this criterion but now it is no longer a mandatory requirement. The only this is that the processing becomes easier if you have an account with the particular bank but that doesn’t mean the other bank will not give you any loan.

Question 3:

Is it possible to borrow another education loan and if yes, then when will the repayment of the new loan commence?

Answer:

Well, the answer is, yes. In case you are planning to pursue Master’s then you can borrow another loan for the same without completing the repayment of the previously taken loan for Bachelor’s. This loan is known as a top-up loan which can be taken against the already existing loan. However, it is subject to the internal rules and regulations of the lending bank’s discretion.

The repayment period will begin as per the new moratorium period which will take effect once the student has joined a new course.

Question 4:

Are the education loans accepted in foreign exchange by the Banks? Can I pay the Bank in Dollars although my Bank is in India?

Answer:

The loan that is availed by the student in his or her home country is paid to the educational institution directly in the local currency (Dollar/Pounds/Euro etc.). On the loan amount disbursed, as per RBI regulations the lender may charge an additional currency conversion fee.

Question 5:

Are banks open to education loan requests from NRIs?

Answer:

Go through the criteria below where the bank accepts the requests received from NRIs:

If the student is an Indian passport holder and fulfils all the eligibility requirements of the loan
If the bank can hold any documents such as security or any collateral which is enforceable in India

Hope these set of questions and the answers were useful.

Keep looking out for this page, for more such articles of overseas education loan.

Stay Connected!

How to have a Smooth Process of Study Abroad Loan

The students aspiring to study abroad have increased in multitudes these days. Reason being a foreign degree in the portfolio and not to miss the international exposure gained throughout the study period and the work period as well. This helps them in getting a brilliant job back in their home country because of the foreign tag against their names.

Having said all this loans for higher education abroad carries a bigger meaning and larger impact for budding adults aspiring for foreign education. Now these students carry individual perceptions about the study abroad loans based on their personal experiences in family or with friends. But, to pursue higher education abroad, a student loan is the most convenient way to realize their study abroad dreams.

This education loan impacts the student and the parents differently at three different stages,

Before Commencement Of Their Study
While Studying
After Completion Of Study

These 3 stages are important no doubt but that does not mean it is something that we need to be panicked about. The timely payments and regular checks with the bank is the key to smooth procedure of education loan.

The student is relaxed till the time the loan is processed and disbursed to his account. But once, the repayments begin, it becomes very crucial that the cycle of repayment should be regular and timely.

Likewise, when the student has to commence repayments, the student should get in touch with the bank for his regularization of EMIs, in order to ensure a timely repayment cycle towards the loan.

Secondly, the student and parent should understand the EMI amount is directly proportional to the rate of interest and the tenure of the loan repayment. Hence, choose for the bank that offers you convenient and suitable repayment options, so as to have the long lasting feeling of – best bank for overseas education loan till you complete the loan repayment even after 8-15 years.

Financial burden is not a good companion for life, as this reflects directly into the credit scores of the student. The educational loan is hence an essential liability that should be taken care with utmost punctuality and religious repayment strategies.

Nevertheless, the students should seek assistance from education loan advisors or professionals. Mostly, the education consultants are the best to receive guidance for educational loan, as they can share detailed and country specific information along with student friendly options in the long run, as they are aware of the difficult aspects of educational loan and resulting credit scores.

With the growing ease of digital documentation, credit scores are one the essential aspects of understanding a person financially. An educational loan is the first loan of the student’s life thus it becomes highly crucial for the student to maintain the loan repayment records as his life has just begun in all aspects – global academic career, establishing dreams and professional career and life-style; where the financial status is directly proportional for his future life.

Plan and act accordingly while applying for an overseas education loan and live your dream of studying abroad.

Hope this article was informative.

Stay connected to read more such articles on Study Abroad Loans.

Read more:

Overseas Education Loan: Tax Benefits

Expenses for Higher Education Abroad and the Statement of Expense

Education Loan For Higher Studies Abroad

You might have enrolled in a foreign university for pursuing higher education. Here are a few things to remember.

Find out the entry requirements for admission to the course and the educational institution. Usually, students need to prove their proficiency in the English language by taking qualifying tests like TOEFL or IELTS.
Once your admission to the institution is approved, you will receive a Letter of Acceptance or Offer of Place which is nothing but a letter stating confirmation of admission.
The next step is approaching a bank for overseas education loan.

Now, before applying for an overseas education loan, a student should have an estimated expense value in mind. You may seek the assistance of an experienced loan advisor for this purpose.

Statement of Expense

A written breakup of the education expense is necessary to be displayed at the bank. The document should comprise of tuition fees for entire duration for course, living expenses, study material expenses and the airfare. Do not mislead bank with any fake information. Display the cost of books as mentioned in the offer letter, only.

In addition to the statement of expense sheet, a few supplementary documents should be submitted as well.

An offer of place letter or letter of acceptance is other words.
A copy of air ticket if confirmed or an estimated cost of ticket.
If you have taken laptop for coursework, then a quotation from the vendor is also necessary.
Living expenses details for respective country.

How do you justify that you have enough funds to support your living in Canada? Let’s understand this with an example of Canada. Students who have acquired a seat in a premier institute or any other reputed educational institution should purchase a Guaranteed Investment Certificate (GIC). An amount of CAD 10,000 should be invested towards living expenses according to the terms of GIC. It can be invested in a student account in any GIC participating financial institution. In case of any assistance for overseas education loan process, please consult an authorized abroad education consultant and a loan advisor.

Congratulations! Now you may submit all the documents in the bank with your application for overseas education loan.

What other documents you may require submitting in the bank?

In most cases, parents sponsor the education loan. Whether unsecured or secured, the sponsors should file an Income Tax Return and display last 2 ITR at the lender. If you’re borrowing unsecured education loan, then rental and agricultural income is not considered.

Any financial institution validates whether you’re a citizen of India or not at the first hand. So, the applicant should provide proof of citizenship like the passport and Aadhaar card.

Banks consider students who have secured at least 50% in their higher secondary and/or graduation period. Therefore, academic marksheets and certificates are also asked.

For pursuing a post-graduate diploma course, be prepared to invest INR 15 to 20 lakhs. A postgraduation programme may cost you INR 35 to 45 lakhs. If you are looking for an under-graduation programme abroad, then it might cost you between 75 lakhs to a crore.

Your application for foreign education loan is just a step away with loan advisors and abroad education consultants.

Hope you found our article useful!

Related URL:

Education loan for MBA Course in Canada

Education Loan for Higher Studies in the United Kingdom

The escalating cost of education in the global market has given birth to the necessity of external funding as most of the Indian families earn moderate income. Quite noticeably, after the launch of the Education Loan Model scheme, more and more students have leapfrogged pursuing higher education abroad. A brief account of the different aspects of overseas education loan to study in the United Kingdom is given in this article.

First and foremost, a prospective student should know about the education cost along with the living expenses that would be required. Once it is known, a student can then assess how much self-funding is within capability. Considering both the factors, an overseas education loan can be borrowed as the desired bank.

Kinds of Education Loan

For a basic understanding, education loan has been divided into secured and unsecured loan based on the loan amount requirement. There are two types, one is the secured education loan and another one is an unsecured education loan.

Secured overseas education loan: Supposing that upon self-assessment student decide to borrow a loan amount greater than 7.5 lakhs and approaches a nationalised bank for the approval. In such a scenario, the bank asks to mortgage collateral as security. This is referred to as secured education loan.

Unsecured Education loan: When a student need not pledge any collateral that is the tangible asset like the property, the education loan borrowed is termed as unsecured education loan.

The UK immigration visa officer accepts both unsecured and secured loan. Astudent should display the mode of financial assistance such as the education loan borrowed, and the scholarships granted during the visa application process.

Which bank to approach for the overseas education loan?

A list of the financial institutions pre-approved by UK immigration is given below:

Scheduled Commercial Banks – India
American Express Bank Ltd
Allahabad Bank
Andhra Bank
Axis Bank Ltd
Bank of Baroda
Bank of India
Bank of Maharashtra
State Bank of India
The HDFC Bank Ltd and many more are there in the list which you can browse or ask an experienced loan advisor.

In addition to the kinds of loan, a student must be aware of certain technical things like the rate of interest, moratorium period, marginal cost and the CIBIL score. It is important to note that the moratorium or grace period is not offered to international students disbursing unsecured education loan from NBFCs.

An example of a reputed nationalised bank; Bank of Baroda, where student has applied for a secured education loan has been given below:

Quantum of finance:

Loan amount up to 80.00 lakhs may be approved but as such there is no limit if cost of education programme is more than that.

Marginal cost:

A certain portion of education loan is required to be borne by the applicant or the co-applicant. It is generally 10% – 15% in case of Nationalised banks.

Rate of Interest:

If the admission has been confirmed in the premier institutions, then the rate of interest is 9.40%. In case of non-premier institutions, it is 10.15%. A girl child receives concession of 0.50% as per the Government norms.

Tenure:

The repayment period is 15 years for the student. EMI starts after the grace period.

Income Tax Benefit:

A student may file for deduction under section 80E for payment of simple interest on the education loan.

This was a bit about the education loan for higher studies in the United Kingdom. You may read more about the listed institutions as per the bank where you’re eligible to get a loan. To get assistance in the process of online loan application for abroad studies, please consult a recognised loan advisor or studies abroad consultant.

Hope you liked the article!

Stay visiting our page for more updated information.