Have you considered continuing your studies overseas? Enrolling in a foreign university can open the door to global career options and cultural knowledge as our world grows more connected across borders. However, the high tuition costs often put up financial roadblocks for ambitious students. An abroad education loan can help make international academics affordable.
This post outlines key information on prudently funding global ambitions. It explains eligibility criteria, the application process, benefits and more to equip readers thoroughly.
Understanding Education Loans for International Studies
Education loans for international studies typically cover the various expenses related to your course, cost of living and other associated costs incurred when studying overseas. The loan amount depends on the tuition fees, country and city of study, program duration, and living expenses. It usually includes coverage for:
- Tuition fees: Includes all academic costs and registration expenses
- Living expenses: Accommodation, food, transport, utilities, health insurance
- Travel: Return airfare, inland travel, visa charges
- Other costs: Books, computers, application fees, etc.
Using tools like an education loan EMI calculator helps estimate monthly repayment amounts, making it easier to plan your finances during the study period and beyond.
Key Features of Education Loans
Some key features that define an abroad education loan include:
- Loan amount and flexibility: You can avail yourself of loans up to Rs. 1.5 crores. The disbursement happens in instalments aligned with the program duration and living expenditure pattern.
- Interest rates and repayment: Interest rates start at as low as 8.5% p.a., while repayment tenures go up to 15 years after the study period.
- Collateral and margins: Most loans require collateral, and margins range between 5% and 20% of the loan amount.
- Coverage benefits: Certain lenders offer coverage for travel emergencies, sponsor protection, and the core loan.
Meeting Education Loan Requirements
Meeting essential criteria like academic merit, financial need, and admission to an approved institute paves the way to qualifying for assistance through education loans.
- Age Minimum: Applicants need to be over 16 when applying. Most lenders want loans repaid by around age 35.
- Admission Proof: Provide documents proving your acceptance and English test scores (IELTS, TOEFL, etc.).
- Incomes and Assets: Lenders check tax returns and bank statements to see your ability to repay.
- Co-signer Necessary: Most lenders require a guardian or co-signer who is also responsible for repayment.
Benefits Students get From Education Loans
Some noteworthy benefits offered by education loans for studying abroad include:
- Global exposure: Loans make quality international education accessible.
- Income tax rebates: You can claim income tax deductions under Section 80E of the IT Act.
- Special provisions: Certain banks offer discounted interest rates for female students pursuing higher education abroad.
- Credit history: Timely servicing of education loans helps build a healthy credit score.
Getting an Education Loan
Here are typical steps students follow to get loans for overseas studies:
- Research: Compare different bank and financial company offers on interest rates, amounts, repayment choices, etc.
- Documents: Have ready identity proofs, admission letters, academic results, income statements, etc.
- Apply: Visit the nearest branch or submit the application form online.
- Approval: Loans get approved within 7-30 days based on eligibility and documents.
- Money Transfer: The loan amount is sent directly to the university for instalments.
Conclusion
With education loans making international education affordable, language or finances should not limit your career goals. Assess your needs, evaluate all options thoroughly, and make an informed financing decision for a rewarding learning experience abroad. The right funding support can open up opportunities that can augment your professional and personal growth trajectories.
