Foreign Education Loan

Updated on Dec. 7, 2022, 5:52 a.m.

The foreign education loan is doing the round in the present scenarios, and it is said if the person is from a good financial background, there is no problem. However, the scenario changes when the person is from a poor family background applies for the foreign educational loan and this will impact his or her studies in the long run.

One need to study well in order to see the world from a different perspective and get enlightened. People In India join great and branded colleges to get quality education, and some willing to upskill their existing knowledge and have an international degree love to travel to foreign lands to get quality education and make a difference in their nagging lives.

Quality and job driven education is the need of the hour and most of the students and their parents go the extra mile to achieve this target. The cost of education has increased in the present scenario after the Pandemic and the Ukraine wars and opting for the quality foreign education loan is the viable solution.

There are two forms of the education loans in the present scenario and these can be classified as given below as follows:

Domestic Education Loan

This is a unique education loan, where in the students love to pursue the education and the loan is approved only if the students have admitted to the concerned educational establishment and meets all the desired qualifying standards set by the authorities.

Overseas Educational Loan:

These are unique educational loans, where in the students will take up any course of their area of interest in a foreign country. This can happen in two different situations namely when a person wants to upgrade his or her existing skillsets and make it count. Furthermore, this also happens when you want to have an international certification to your qualification to give you an edge over others in this competitive world.

We will analyse and cover various concepts of the foreign educational loans as it will be very easy for the students to get one in the present scenario marred by confusion.

Features of the Foreign Education Loans

Some of the major features of the foreign educational loans are given below as follows:

  • Gives the students an edge over others in the longer run.
  • We offer 100% financial assistance based on some conditions.
  • Loan repayment tenures will be 10 or 12 years depending on the course and nature of the course and the amount.
  • We cover the internal and external expense programmes including the laptops, other amenities and exchange travel expenses in another nation.
  • Ideal for the students in India not able to afford quality education at premier institutions abroad.
  • The parents will also be considered as the joint borrowers along with the students applying for the foreign education loan.
  • Loan amount can be varying from INR 50 Lakhs to 1 Crores and above in the current scenarios.

How to Select Best Foreign Education Loan?

There are various ways to select the best foreign educational loans and you must be extremely careful to analyse various vital aspects and it is imperative that you must take into account these factors and they are given below as follows:

  • Rate of Interest: A one percent increase in educational loan will have a great impact hence you must browse through online and offline channels to select an ideal educational loan.
  • Repayment Duration: This is a specified duration, during the foreign educational loan, where the borrower is given concession from making payments. Loans having freeze period have a great advantage as you don’t have to worry about the process of making repayments.
  • Difference Money: It is the amount that you pay from your account while the remainder is paid by the bank. If a bank offers 0% margin, they will fund all your expenses.
  • Hidden Fees: You will also need to check, if there is any hidden fees that is present in the educational courses that is taken like the Forex Charges, Processing Fees, Cost of taking life insurance, Unexpected activities like selling other policies before the educational loan is sanctioned.

Eligibility Conditions to Avail Foreign Educational Loans

There are eligibility conditions available to get the educational loans and they are given below.

  • Open to citizens of India.
  • Must be above 21 years of age.
  • Must have secured the admission from other colleges.
  • Must have completed 10 plus 2 educational qualifications along with the Undergraduate and the Graduate courses.
  • Courses conducted at institutes like IIM, IIT, IISc, NIFT and UAS is also considered for these educational loans.

Documents Required to Avail Foreign Educational Loans

  • Pan Card.
  • Passport.
  • Aadhar Card.
  • Credit Reports.
  • Residential Proof.
  • Passport Size Photos.
  • Fee Structure Details.
  • Bank Account Statements.
  • Income Proof of the parents.
  • IELTS, GRE, TOEFL Scorecards.
  • Marks card of 10th, 12th standard examinations.
  • Latest 3 months payslips of the company of the parents.
  • Letter of Admission and Relieving of the previous courses.

An Educational Loan is an easy way to assist your financial growth and you need not take your family savings to get your education from universities abroad. Furthermore, you can avail the foreign loans from various banks and other financial institutions to cover the academic and living expenses and clear the loan once you get placed in good company in India or abroad. The application process is rigid and tedious and thus many do not take theforeign education loan. I hope this strictness gets evaporated in the years to come.

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