Bank Loan
The number of students who are opting for higher education abroad has increased significantly in the past two decades. The ever-increasing exposure of students through internet and also the success stories of the ones who have made it to universities abroad have motivated many students to dream big. One cannot deny that the expenses associated with overseas education have made many students go for educational loan and there are a number of banks who offer these loans as well. The bank loans for the education loans takes care of all the financial matters of the student in he completes his or her education and the repayment starts once the education is over. The interest is a fixed one and the payment is through structured EMI.
When applying for loan to banks for studying abroad following are key points to be kept in mind :
- A co –applicant (parents, sibling or spouse) is required.
- A third party guarantor is required if the educational loan is between INR 4 - 7.5 lakhs.
- Collateral is required for educational loans above 7.5 lakhs.
- The repayment of the loan begins after six to eight months of the course completion.
Major banks already have a pre approved list of Institutions and the courses conducted by them for students applying for loan to study abroad please stop the loan is sanctioned depending upon the goodwill of the institution, the course, the creditworthiness of the guarantor the co-applicant.
What does an Overseas Education Loan include?
- Tuition fees
- Admission fee, Caution money, refundable deposits etc.
- Examination fees, library charges, lab fees./li>
- Travel expense
- Assignments, exchange program, study tours, etc.
- Living expense
Documents required for Education loans:
- Admission letter to the University or Course
- Total Cost of study including travel cost
- Proof of residence
- Income Proof
- Guarantors if any (All the personal and income proof of Guarantors)
- Copy of the documents for immovable property towards Collateral Security
- Copy of letter confirming scholarship, if any
- Copy of Foreign Exchange permit ( if available)
- Two passport size photographs
- Statement of borrowers bank account for last six month