• Study Abroad
How to Apply for Student Loans to Study Abroad?
- 4546 Reads
- 3 min Read
• Eligibility for education loan to study abroad includes minimum qualifications, age, chosen program & institute
• Valid proofs as documents are required for loan application
• Steps to apply for a loan include identifying the loan and lending institution as per the suitability of loan features
Have you been wondering about managing or arranging finances for international education? Then you must also have considered opting for an education loan. A loan can be advantageous both in cases of availability or unavailability of funds. The fundamental advantage is its nature of repayment in installments, which also comes with some interest.
A deliberate consideration of interest rates, moratorium periods and other charges of different lending institutions is required before applying for an education loan. This blog will cover all aspects, from eligibility to getting an education loan.
Eligibility for Education Loan to Study Abroad
Most lending institutions consider the applicant’s profile ready for processing if their admission to an educational institute abroad is confirmed. The eligibility requirements are a combination of criteria that have to be fulfilled to avail the student loan in India. Checkout the table below for more details:
Criteria | Eligibility |
Age | 16-35 years |
Minimum Qualification | Senior Secondary Certificate or Diploma |
Program to Pursue | Graduate/ postgraduate degree or postgraduate diploma in professional education |
Institute for admission | Listed, recognized and accredited institutes abroad |
NOTE – The eligibility criteria for an education loan also considers the co-applicant’s income or assets & the criteria stated above may vary with the lending institution and their specific policies.
Documents Required for International Education Loan
Documents required to apply for an education loan include proof of address, scores, financial proof, proof of admission and more. The list of documents required to study in Canada may vary with the chosen lending institution, but documents valid for most loans are given below.
• Confirmed admission from the international educational institution applied to/ pre-admission sanction/entrance exam scores (like GRE, GMAT), class 12 results.
• Previous mark sheets
• Proof of age & identity
• Proof of address
• Latest salary slips of the candidate or co-applicant
• Latest bank statements, audited balance sheet, proof of turnover
• ITR with income computation
• Complete application form with signature
• Latest passport-size photographs
• Appropriate student visa for the chosen country
How to Apply for Education Loan to Study Abroad?
Application for an education loan includes a meticulous compilation of documents and details and choosing the most suitable lending institution. Given below are the steps to apply for a loan with the assistance of leading international consultants.
Identifying the financial institution | Check the lending institution with the education consultancy that is managing the admission application procedure. Multiple Indian banks like ICICI Bank, HDFC Bank and Yes Bank offer loans to students & professionals willing to study abroad. |
Checking Eligibility Criteria | Eligibility criteria for different banks vary in terms of minimum required percentage or CGPA scores in the previous qualification, program the candidate is going to pursue, institute they are taking admission in and more. Students should check the shortlisted lending institution options for their individual prerequisites. |
Gathering Documents | Documents such as proof of identity, address, admission letter from the institute, proof of income of the parent/guardian, etc., are some mandatory documents required for submitting an application for an education loan. |
Submission of Loan Application Form | Fill out the loan application form accurately and completely. This will include personal, academic & financial details along with the details of the co-applicant, if the candidate is applying with one. The candidate may be required to produce original documents for verification and a copy may be required for attachment with the form. |
Waiting for Processing | It takes 7 to 45 days for the banks or NBFCs to process an education loan. This is the time in which the lending institution reviews the application and verifies all details in the application. Based on factors of education loan approval, the educational institute becomes ready to receive payment or fee through the bank. |
Processing Time for Education Loans to Study Abroad
Processing time is the time it takes for the lending institution to verify personal, financial and academic details. It takes 14-25 days for an institution to process and sanction the loan. Processing fee typically ranges from 0.5% to 2.5% of the total loan amount and this varies with the bank or financial institute offering it. In some cases, an additional application fee will be charged.
The processing time for NBFCs ranges from 7 to 45 days, with a processing fee of 1-10%. Both processing time and fee may differ from the given days and percentage according to the loan product and whether or not collateral is involved.
Considering the processing time, it is smart to apply for an education loan to study abroad 90-100 days before the session begins. The 3-month timeframe allows the candidate and guardians to complete the necessary documentation and timely disbursement of funds to the institute.
Conclusion
Student loan application for international education is an important part of the student’s journey with multiple calculations of interest rates, processing time, payment terms, and more. The eligibility criteria are set by the lending institutes like banks and NBFCs, so the application for a loan can be made by checking the suitability of the above given factors, once the candidate stands eligible for a certain loan.
It is also advisable to apply for it around 3 months in advance from the beginning of the session in the destination country. For assistance on education loan applications, programs and universities abroad, connect in person or virtually with experts at Canam Consultants.
FAQ
Get great articles direct to your inbox
The latest news, articles, and resources, sent straight to your inbox every month.
Popular Universities to Study Abroad
World class education waiting for you.
University HUB - Anderson University
South Carolina, USA • 4 Programmes
Tuition Fee : USD 0-0 / year
Navitas Group - Deakin College - Geelong Waterfront Campus
Victoria, Australia • 20 Programmes
Tuition Fee : AUD 32500-33000 / year
University of South Wales - Cardiff Campus
Wales, UK • 47 Programmes
Tuition Fee : GBP 13000-14000 / year
Southern Alberta Institute of Technology (SAIT)
Alberta, Canada • 123 Programmes
Tuition Fee : CAD 13500-30000 / year
University of Cumbria - Lancaster Campus
England, UK • 28 Programmes
Tuition Fee : GBP 10000-16000 / year
EDUCO - The Savannah College of Art and Design
Georgia, USA • 92 Programmes
Tuition Fee : USD 39000-40000 / year
Education Centre of Australia (ECA) Group - Victoria University - Sydney Campus
New South Wales, Australia • 13 Programmes
Tuition Fee : AUD 21000-25000 / year
Crandall University - Sussex Campus
New Brunswick, Canada • 1 Programmes
Tuition Fee : CAD 0-0 / year
Popular English Language Proficiency Exams
Blogs and Articles
Curated content to keep you updated on the latest education trends, news and more.
Updated on • Apr 25,2024 03:43 PM IST • Ireland
Updated on • Apr 23,2024 03:47 PM IST • UK
Updated on • Apr 23,2024 12:15 PM IST • Study in Canada
Timeline for USA Summer Intake: Deadlines & Universities Requirements
Updated on • Apr 19,2024 03:45 PM IST • USA
Difference between IELTS & IELTS UKVI
Updated on • Apr 18,2024 05:42 PM IST • IELTS
Updated on • Apr 18,2024 01:33 PM IST • Study in Canada
Describe Your Hometown IELTS Speaking Part 1 Topic
Updated on • Apr 15,2024 01:35 PM IST • IELTS
How can you Apply to University in Canada for Indian Students?
Updated on • Apr 13,2024 01:36 PM IST • Study in Canada • Colleges in Canada
PTE Score Chart 2024: PTE Exam Scoring System & Calculation
Updated on • Apr 13,2024 11:39 AM IST • PTE
Study in New Zealand without IELTS
Updated on • Apr 11,2024 05:36 PM IST • New Zealand
Tips to Write a Great GRE Analytical Essay
Updated on • Apr 11,2024 10:03 AM IST • Education
Top 5 Mistakes CELPIP Test Takers Make
Updated on • Apr 10,2024 05:38 PM IST • CELPIP
Study and Work in Australia: A Comprehensive Guide
Updated on • Apr 05,2024 12:59 PM IST • Australia
Updated on • Apr 04,2024 11:43 AM IST • IELTS
Crime & Punishment Essay IELTS
Updated on • Apr 02,2024 10:31 AM IST • IELTS
Believing These 8 Myths About IELTS Keeps You From Growing
Updated on • Apr 02,2024 09:49 AM IST • IELTS
20 Common IELTS Essay Topics for Writing Task 2
Updated on • Apr 01,2024 05:46 PM IST • IELTS
Updated on • Mar 29,2024 11:47 AM IST • Study in Canada
Guide to Student Housing in Nova Scotia
Updated on • Mar 29,2024 10:49 AM IST • Study in Canada
Masters in Geology in Canada: Colleges, Courses, and Fees
Updated on • Mar 28,2024 11:32 AM IST • Study in Canada
Related Blogs and Articles
A little effort to provide an authentic and reliable content for keen readers!!
Countries to study MBA abroad in 2024 : Eligibility, Fees, Exams for Indian Students
Updated on • 05-03-2024 • Study Abroad
Statement of Purpose (SOP) for Internship
Updated on • 15-02-2024 • Study Abroad
Highest Paying MBA Specializations in Abroad
Updated on • 09-02-2024 • Study Abroad
Differences Between Studying in UK vs USA
Updated on • 06-02-2024 • Study Abroad
Qualities of a Good Statement of Purpose
Updated on • 03-02-2024 • Study Abroad
Best Countries to do Masters (MS) in Computer Science- Intake & Universities
Updated on • 02-02-2024 • Study Abroad
MS in Canada vs USA - Which Should You Choose for Masters?
Updated on • 31-01-2024 • Study Abroad
What to Expect After Studying Abroad?
Updated on • 29-01-2024 • Study Abroad
7 Study Abroad Safety Tips for Students
Updated on • 23-01-2024 • Study Abroad
Do's and Don'ts of Studying Abroad
Updated on • 23-01-2024 • Study Abroad
The Best Time to Study Abroad: A Comprehensive Guide
Updated on • 22-01-2024 • Study Abroad
How Students Can Be Mentally and Physically well-being when Studying Abroad
Updated on • 18-01-2024 • Study Abroad
Everything You Need to Know About International Student Visa
Updated on • 18-01-2024 • Study Abroad
Cost of Living in Canada for Indian Students in 2024
Updated on • 15-01-2024 • Study Abroad
Tips For Socializing While Studying Overseas
Updated on • 15-01-2024 • Study Abroad
Best Countries to Study Abroad for Indian Students in 2024
Updated on • 13-01-2024 • Study Abroad
LLM Abroad: Universities, Eligibility, Courses, Countries, Scholarship, Jobs for Indian Students
Updated on • 14-11-2023 • Study Abroad
ACT vs. SAT- How to decide which test to take?
Updated on • 30-09-2023 • Study Abroad
How to work in Canada after Graduation
Updated on • 29-09-2023 • Study Abroad
Grasp the Concept of Graduate Employment Rate
Updated on • 29-09-2023 • Study Abroad