Education Loan for Abroad Study:- Studying abroad can be a life-changing decision, however, this doesn’t come easy. Those who want to pursue higher studies abroad, but finding it difficult to arrange for funds, now have the option to make arrangements for funding their education. In this article, we will cover each and every detail related to education be it the process to apply for a loan, eligibility or documents required for it. We will also cover various other aspects related to student loans like the Indian banks giving student loans or the role of a guarantor. Will cover each and every aspect for all those who are looking for an education loan for study abroad.
Education loan for studying abroad – Gyan Dhan
Education loan required documents vary from lender to lender and also depend on the type of education loan applied for. Here’re the general documents required by almost every lender.
- KYC Documents
- Address Proof
- Academic Record Documents (From Applicant)
- For Salaried Co-applicant
- For Self-employed Co-applicant
- Collateral Related Documents (If applicable)
As you can see, by selecting the right overseas education loan, the reduction in cost can be as high as 5-6%.
What all documents required for applying for Education Loan for Study Abroad?
Before applying for an education loan, the applicant must be completely aware of the documents required to apply for a study loan for abroad. Following documents are required to apply for an education loan for abroad studies.
- Mark sheet and certificates of the applicant
- Mark sheet (Score Report) of GRE, GMAT, TOEFL, IELTS, etc. whichever is applicable
- Property title deed
- Building approved plan
- NOC for a mortgage from builder or society
- Document type
- Applicant
- Co-applicant
Date of Birth:- Birth Certificate, Passport, Voter card with DOB, College Passing Certificate, PAN Card, Driving license, Aadhaar Card
Residence Proof (if owned)
Electricity Bill, Municipal Tax Receipt, Share Certificate or Title Deed (with Flat No)
- Residence Proof (for a rented property)
- Registered Rent agreement (with utility bill), Landline phone bill, Post Paid Mobile Bill, Bank statement., Passport, Driving License, Voter ID, and Aadhaar card
- PAN Card
- Copy of PAN / Form 60 if PAN not available
- Signature
- Signature verification from the bank, Passport, Driving License, and PAN Card (all IDs should match with your current signature)
Relationship proof
- Passport, Pan, Aadhaar card, Marriage certificate, Birth certificate, Legal heir certificate, Ration card or any other acceptable documents
- Academic documents
- 10th,12th, UG or PG mark sheets, degree or provisional degree certificate and applicable entrance test scores
- Registration certificates for Professionals (CA, Doctor)
- Income proof – Salaried
- Documents to establish 3 years work experience where ever applicable and available
- Latest 3 salary slips, Bank Statement of last 3 months, Form 16,
- Self-employed
- 2 years ITR with the statement of income, Income certificate from Tehsil/collector’s office
- Office Address
- Form 16/ Salary slip/ Letter from HR/ Snapshot of site/Identity card
- Admission proof
- Invite/admission letter from University/college and Fee structure
- Technical Documentation
- Apart from the above-mentioned documents, aspirants also need to have some other technical documents to avail a student loan.
Legal documentation
In addition to the standard and technical documents, aspirants also need to have a list of legal documents for getting an education loan.
NOTE: These requirements can vary as per the banks’ own regulations.
Get education loans for studying abroad from Auxilo
Our study abroad loan application process is YOU-centric. strive to meet your timelines and admission requirements in the best way can.
A promising student’s potential matters, get better benefits with merits and higher scores.
Our study abroad loans are meticulously designed to enable fast-track documentation and create a smooth experience for you, so that you can receive your study loan immediately and embark on an exciting, new journey to a new place!
Pre-Admission Loans offer the benefit of “proof of funds” which helps you successfully secure a Confirmation of Admission at the University of your choice.
Cover all expenses related to studying abroad, including education related costs, tuition fees, examination fees, living expenses, travel expenses & pre-admission costs.
cover all education related costs, such as tuition fees, examination fees, living expenses, travel expenses & pre-admission costs.
Our pre-admission loans offer ‘proof of funds’ which helps with securing Confirmation of Admission at your chosen Universe.
Everything You Need to Know About Study Abroad Financial Aid
The cost of attending college or university in the US has been on a steady increase over the past decade. A U.S. News & World Report study in 2021 showed that over a 20 year period between 2002-2022, in-state tuition at US universities rose by 211% and out-of-state tuition increased by 171%. Due to this, more and more students are forced to take out loans to afford higher education. While loans can be extremely helpful and make the dream of college attainable, it definitely complicates studying abroad.
Location can also affect overall cost. For example, countries like Iceland, Norway, and Sweden and cities like London and Paris will have much higher price tags for housing, meals, and transportation. If you’re flexible about destination, explore expected costs for living in some of the most popular study abroad countries.
Student loans can be taken out through the federal government or through private lenders such as banks or credit unions, and be used for your studies abroad.
The US Department of Education provides student loan funding to eligible citizens. This loan money can be used in the U.S. or abroad. If you’re planning to use your federal funds overseas for study abroad, you must choose a university-approved program (such as the types listed above) or seek approval should your desired program not be listed.
Study Abroad Financial Aid
Already receiving federal aid for your US university studies? Then you’re in luck! You can apply your current aid package to your study abroad. You should work with your university’s financial aid office to determine whether you’ll need to apply for an adjustment. If you don’t have loans though, you’ll need to apply online.
To apply for federal student aid, you must fill out the Free Application for Federal Student Aid, or FAFSA. This can be done online and can be completed relatively quickly should you have all the necessary information on hand. This information includes your:
There are both state and federal deadlines every year so be sure to check the website for deadlines where you live.
Once you have submitted your FAFSA, you will receive a Student Aid Report (SAR) which will confirm your details and tell you how much you can borrow in loans.
Based on your education level (undergraduate vs. graduate) and income level, three different types of loans may be available to be used for both general study and study abroad.
Amounts for federal loans vary between $5,500 to $12,500 per year for undergraduates and up to $20,500 for graduate students. The amount will be determined by a large number of factors, including how long you intend to study internationally. Each of these have different interest rates and annual award limits
Everything You Need to Know About Study Abroad Financial Aid
If you’re applying for federal loans for the first time you will be required to complete online entrance counseling, which explains the loan process in detail and provides financial planning tools.
Private loans are an option for students who have maxed out their federal borrowing limits or do not qualify for federal loans. Generally, these applications can be submit online.
To help students wade through the many private loan providers available, financial website Nerdwallet has detailed the best private student loans. Their article compares interest rates and terms to guide you to a well-informed decision.
It’s important to note that unlike federal loans, most private lenders require a credit check. If you don’t have a credit history you will need a co-signer. A co-signer could be a parent, guardian, or another adult with a good credit rating who is willing to pay back your student loan should you fall on hard times. There are also providers who don’t require a minimum credit score.
Studying abroad can be a very rewarding and life-changing experience. It’s up to you to decide what is best for you and your family’s finances, so here are some pros and cons to consider when borrowing money.
FAQz
- How can get an education loan to study abroad without collateral?
Education loan has come as a big relief to those who want to pursue quality education but face a big challenge while arranging the funds. Now students can avail of a loan of up to INR 4 lacs without collateral. For loans, up to INR 7.5 lacs, parents or guardians are made joint borrower and third party guarantee is obtain. For loan exceeding INR 7.5 lacs property or any other asset is require as collateral.
2. How much can you borrow against collateral?
If you want to take the loan with your immovable property as collateral, in that case, the bank’s representative will verify your property and prepare a report on whether it can be mortgage or not.
Also, the bank’s representative will evaluate your property. Based on this report, the loan amount will be approve.
3. What is the responsibility of a guarantor in an Education loan?
Becoming a guarantor for a loan is a huge responsibility as the guarantor will have a legal obligation to pay in case the borrower defaults on his payment. If the loan amount exceeds INR 4 lacs, then the bank may ask for a guarantee by a third party. If the borrower is not able to repay the loan amount irrespective of the circumstances, in that case, the guarantor holds the liability to repay the complete amount to banks.
4. Read the agreement carefully
This is one of the most important aspects to look after while taking the loan. We always suggest you go through the terms and conditions of the loan carefully and then move ahead with it. This is one factor we really stress upon, as you should always be clear with all the conditions mention in the loan agreement. If you have any doubts regarding anything then always consult the experts apart from the bank representative.
5. What is the maximum loan amount you can get for studying abroad?
A. As such, there is no limit set by the banks for offering education loans to the students abroad. It depends on the bank to bank. The majority of the banks offer loans maximum up to INR 20-30 lakhs. Also, if the loan amount is more than INR 20 lakhs then the interest rate also increases.
6. For which type of courses, banks offer education loans for studying abroad?
A. Generally, banks and NBFCs prefer to give loans for undergraduate and postgraduate courses. Also, the majority of banks prefer to give education loans abroad for pursuing job oriented and professional courses.