Important Things to Know Before Availing an Education Loan to Study AbroadPurchase & Refinance Mortgage LoansUpdated on Feb 21, 2020 View more like this | Visit India, UN | Contact Alisha Antil |
Pursuing an education abroad is generally far more expensive when compared to a similar course in India. Most people who opt for abroad studies need to rely on education loans to pay for the expenses.
However, before you apply for education for abroad studies, here are some things you should know.
Education loan eligibility
You must meet a few crucial requirements to successfully avail an education loan on property. Here are some common factors that most NBFCs check before loan approval.
You must be a citizen of India.
Students under 18 years cannot avail the loan themselves. Instead, their parents can take the required credit for them.
You must have a good academic background.
You should secure admission at a foreign college, institute or university before approaching any lender.
Availing an education loan for study abroad is easier when the course you are pursuing belongs to the technical or professional field. This is due to the greater chances of securing a job and repaying the loan after completion of these courses.
Based on the lender you approach, these factors can change. However, the basic premise remains the same for all non-banking financing companies in India.
Documents necessary for availing education loans
1. Ensure you keep the following documents ready when availing an education loan.
2. Photo ID proof of the applicant and co-applicant (if any).
3. Filled application form.
4. Academic documents.
5. Applicant and co-applicant’s recent passport-sized photographs.
6. Mark sheets and certificates for prior studies.
7. Score report for abroad entrance examinations.
8. Proof of admission belonging to foreign universities or institutes.
9. Bank statements.
10. Co-applicant’s (if any) proof of income.
11. Residence proof for both the applicant and co-applicant.
If you want to secure the education loan with collateral, opting for a loan against property is a valid solution. In such a case, additional documents are necessary.
1. Property title deed.
2. NOC for a mortgaged property from society or builder.
3. An approved plan for the said building.
A detailed procedure for availing education loans
After eligibility and documentation comes the actual application procedure for such a loan. The following steps ensure hassle-free application and approval.
Step 1: Double-check whether the course you are pursuing is covered by NBFCs in India.
Step 2: Determine the exact amount of loan you require. Performing this calculation should also reveal how much of the cost you can bear.
Step 3: Compare various lenders in the market and choose the company that fulfils your requirements properly.
Step 4: Fill out the loan application form and submit after verifying all the details.
Step 5: Read the offered loan documents carefully. Clarify points with the lender before proceeding to sign.
Step 6: Submit the offered documents and wait for loan disbursal. Education loan disbursal occurs in instalments or as per the fee payment policy of the college or university.
Does an education loan suffice the cost of abroad education?
Even when you opt for an education loan for study abroad studies, the principal amount is generally low. It is often insufficient to clear the course and tuition fees attached to such foreign courses. One of the primary reasons why NBFCs offer lower sums for education loans is because they are unsecured forms of credit.
Therefore, the best way to increase your principal sum is to provide collateral against this education. For instance, in the case of loan against property, you can avail substantial loans, easily clearing overseas education costs. Companies like Bajaj Finserv offer such advances, as well as provides pre-approved offers to make the education loan availing process simpler and faster.
These offers are available for several secured and unsecured credits, including home loans, personal loans, credit cards, education loan and more. You can check your pre-approved offers by providing your name and phone number.
Understand the pros and cons when it comes to loan against property Vs education loans.
1. LAP offers greater loan amount.
2. LAP is a secured credit, leading to lower interest rates on the said loan.
3. LAPs have substantially longer tenor, ranging up to 20 years in some cases.
4. LAPs do not have end-use restrictions, allowing you to use the principal sum for other purposes apart from your education.
Loan against property for education is a valid option that you must consider when looking for a good education loan for abroad studies.
However, before you apply for education for abroad studies, here are some things you should know.
Education loan eligibility
You must meet a few crucial requirements to successfully avail an education loan on property. Here are some common factors that most NBFCs check before loan approval.
You must be a citizen of India.
Students under 18 years cannot avail the loan themselves. Instead, their parents can take the required credit for them.
You must have a good academic background.
You should secure admission at a foreign college, institute or university before approaching any lender.
Availing an education loan for study abroad is easier when the course you are pursuing belongs to the technical or professional field. This is due to the greater chances of securing a job and repaying the loan after completion of these courses.
Based on the lender you approach, these factors can change. However, the basic premise remains the same for all non-banking financing companies in India.
Documents necessary for availing education loans
1. Ensure you keep the following documents ready when availing an education loan.
2. Photo ID proof of the applicant and co-applicant (if any).
3. Filled application form.
4. Academic documents.
5. Applicant and co-applicant’s recent passport-sized photographs.
6. Mark sheets and certificates for prior studies.
7. Score report for abroad entrance examinations.
8. Proof of admission belonging to foreign universities or institutes.
9. Bank statements.
10. Co-applicant’s (if any) proof of income.
11. Residence proof for both the applicant and co-applicant.
If you want to secure the education loan with collateral, opting for a loan against property is a valid solution. In such a case, additional documents are necessary.
1. Property title deed.
2. NOC for a mortgaged property from society or builder.
3. An approved plan for the said building.
A detailed procedure for availing education loans
After eligibility and documentation comes the actual application procedure for such a loan. The following steps ensure hassle-free application and approval.
Step 1: Double-check whether the course you are pursuing is covered by NBFCs in India.
Step 2: Determine the exact amount of loan you require. Performing this calculation should also reveal how much of the cost you can bear.
Step 3: Compare various lenders in the market and choose the company that fulfils your requirements properly.
Step 4: Fill out the loan application form and submit after verifying all the details.
Step 5: Read the offered loan documents carefully. Clarify points with the lender before proceeding to sign.
Step 6: Submit the offered documents and wait for loan disbursal. Education loan disbursal occurs in instalments or as per the fee payment policy of the college or university.
Does an education loan suffice the cost of abroad education?
Even when you opt for an education loan for study abroad studies, the principal amount is generally low. It is often insufficient to clear the course and tuition fees attached to such foreign courses. One of the primary reasons why NBFCs offer lower sums for education loans is because they are unsecured forms of credit.
Therefore, the best way to increase your principal sum is to provide collateral against this education. For instance, in the case of loan against property, you can avail substantial loans, easily clearing overseas education costs. Companies like Bajaj Finserv offer such advances, as well as provides pre-approved offers to make the education loan availing process simpler and faster.
These offers are available for several secured and unsecured credits, including home loans, personal loans, credit cards, education loan and more. You can check your pre-approved offers by providing your name and phone number.
Understand the pros and cons when it comes to loan against property Vs education loans.
1. LAP offers greater loan amount.
2. LAP is a secured credit, leading to lower interest rates on the said loan.
3. LAPs have substantially longer tenor, ranging up to 20 years in some cases.
4. LAPs do not have end-use restrictions, allowing you to use the principal sum for other purposes apart from your education.
Loan against property for education is a valid option that you must consider when looking for a good education loan for abroad studies.
