Quality education has become extremely crucial and is a must for a complete and successful life. Study abroad is a dream for many. The quality education and exposure offered by the foreign institutes and universities is a goal for many aspiring students. The cost of education is, however, increasing rapidly. In fact, the fee structure of reputed institutions is already quite high. Hence, self-funding has become quite difficult and thus it is the education loan that has become the most viable option for the aspiring candidates.
The process of Education Loan for Abroad Studies
- To apply for an education loan for abroad studies, one must be an Indian citizen, having secured an admission into a college/university recognized by a competent authority in abroad.
- A student needs to have a co-applicant in order to execute the loan process. (Parents, Siblings, Spouse)
- For the loan amounts ranging between 4-7.5 Lacs, one needs to have a third party guarantor.
- For loan amounts above 7.5 Lacs, collateral is mandatory. (Example-Property, Fixed Deposits)
- Once the loan application is approved, the banks disburse the required amount directly to the college/university as per the given fee structure.
- The loan is repaid by the student. Generally, the repayment starts when the proposed course is completed. There are certain banks that even provide a relaxation period of 6 months after securing a job or a year after the completion of studies for repayment.
- The banks use the Marginal Cost of Funds based Lending Rate (MCLR), plus an additional spread to set an interest rate for education loan.
List of Documents
- Academics documents
- Offer letter/acceptance letter from the foreign institute
- Schedule of expenses for the course
- Copy of letter confirming scholarship, if any
- Two passport size photographs
- Statement of borrowers bank account for last six months
- Income Tax assessment order not older than two years
- Statement of Assets and Liabilities
- Proof of identity and residence
- Income Documents of parents/guardian/co-applicant
- Collaterals in the form of FDs / Immovable Property
For more information and assistance, visit the nearest Canam Consultants office.