With multiple opportunities existing outside India for higher education, studying abroad has been growing consistently more popular in the country over the years. However, even though many scholars aspire to further study abroad, they often find that sufficient funds are not present to support their dreams and aspirations.
Pursuing higher studies is an expensive affair. An undergraduate degree in the US, Canada, UK, and Australia can cost anywhere between Rs.60 lakh to Rs.1 crore. A postgraduate degree is relatively more affordable at Rs.20 lakh to Rs.50 lakh depending on the university. It is easily conceivable that higher studies abroad are often not readily affordable for many.
The lack of or shortfall in personal funds does not however, have to be a handicap for a scholar intending to pursue further studies. This deficiency can be mitigated by opting for a Personal Loan for higher education which can be used to fund the expenses borne by Indian students pursuing higher studies abroad.
Such a loan, contrary to popular misconceptions, is not very difficult to obtain. Here is what you need to know if you think a higher education loan is the answer to your financial difficulties impeding your aspirations of pursuing studies abroad.
Education Loans for Indian Students Studying Abroad
While the lion’s share of higher education loans in India are provided by banks, today you can procure these loans even from non-banking financial institutions (NBFCs). While the choice is yours as to which financial institution you will be availing your loan from, several factors would come together to influence your financial decision.
Influencing factors will include the amount of loan you require for the pursuit of your studies abroad, the interest applicable, the tenor of the loan, and such other crucial details.
Percentage of interest applicable to the loan amount varies depending on the norms of the lenders. Loans from certain institutions, especially NBFCs, come with certain unique advantages.
For instance, a personal higher education loan from NBFCs like Fullerton India offers you loan of up to Rs.25 lakh. With the help of personal loan facilities your loved ones’ education will no longer remain an unfulfilled dream.
Crucial Facts Regarding Personal Education Loans to Study Abroad
If you have decided to avail a personal loan to fund your education abroad, these facts would help increase your knowledge and assist you to gain a fair understanding of education loans available in India.
1) You need to be between the ages of 18 and 35 to be eligible for an education loan to fund your studies in a recognised university abroad
2) There is no restriction in your choice of subjects. A loan can fund courses such as MBA, medicine, engineering, arts, architecture and a host of other subjects
3) The expenses covered by an education loan includes tuition fees, examination fees, caution fees, library fees, travel expenses, study materials, cost of living and miscellaneous other costs
4) For loans exceeding Rs.7.5 lakh, you will need to provide a collateral such as immovable property owned by you as security for the loan, which is mortgage loan you can avail loan against property from yourmortgageonline.com.
5) Also, a parent or guardian is required to sign as a co-borrower along with you if the loan amount is sufficiently high
6) Your personal education loan will have a moratorium period, generally about 6 months to one year after which you need to begin your EMI payments
Checklist for the Application of Education Loan to Study Abroad
Here is a list of things you will require to produce before the financial institution to avail your higher education loan:
1) Your original passport along with multiple copies of it
2) A copy of the offer letter you received towards your admission into the university abroad
3) Originals and copies of your date of birth and residence proofs such as your Aadhaar Card, Voter ID, PAN Card, and Driver’s License
4) Copies of your academic transcripts and pass certificates
5) Standardized English language test reports such as TOEFL, IELTS, and PTE
6) A schedule of expenses to be borne by you during the course
7) Copies of your Income Tax returns of the past three years
8) Copies of your co-borrower’s Income Tax returns of the past three years
9) Both the borrower and the co-borrower’s bank account statement details for the past 6 months
10) Your recent passport sized photographs
The Final Word
Scholars often give up their dreams of studying abroad because of a lack of funds. It is important to understand that even if your personal savings are insufficient to fund your education, you always have the choice of availing a personal higher education loan.
While it is sufficiently easy to avail a loan today, it is a means of making it affordable to pursue higher studies abroad and return the money to your financial institution once you are employed.