Student Loans for Studying Abroad: Interest Rates, Eligibility, and Process

When studying abroad, expenses are not limited to tuition fees. A student also needs to consider the cost of study materials, rent, food, etc.

The overall amount can turn out to be quite hefty. In this case, international student loans for studying abroad can turn out to be quite handy. This type of loan is provided by various banks and financial institutes to help students. To avail this loan, a student needs to meet the eligibility criteria which vary depending on the bank and financial institution.

Are you a student planning to study abroad but struggling with the finances? Don’t worry, we have got your back with this blog. Keep reading further to know more!

Benefits of International Student Loans for Studying Abroad

Student loans offered by banks and financial institutions for studying abroad have many benefits. Some of these are mentioned below:

1. The loan can cover part or all the education expenses.
2. Students get an advantage of education loan subsidy.
3. These loans eradicate the need to liquidate valuable assets.
4. The interest rates are generally lower in the case of student loans for studying abroad.

Education Loan Eligibility Criteria

To get a loan for studying abroad, a student needs to fulfil certain education loan eligibility criteria. It is important to note here that the criteria may vary across different banks.

Applicants should check the bank’s specific requirements by visiting the nearest branch. Mentioned below are the general requirements a student must meet to be eligible for the loan:

1. Applicant must be an Indian citizen.
2. If you are under 18, then your parent/guardian must co-sign the loan.
3. A strong academic record is required, usually 50%+ in 10+2 and graduation.
4. Secured admission to a recognized institution in India or abroad through entrance exam or merit.
5. It is important to note that banks usually favour technical, professional or career-oriented graduate/postgraduate courses.
6. Co-applicant (parent, guardian, spouse) is mandatory for full-time programs to provide income proof.

Documents Required

An applicant needs to submit certain documents as asked by the bank or financial institution. Mentioned below is a list of general documents required during the application process:

1. Personal ID Proof
2. Aadhar Card
3. PAN Card
4. Passport
5. Passport-size photographs

• Educational Qualifications-Related Documents

1. All transcripts from 10th grade to graduation.
2. Scores of standardized tests IELTS, GRE, GMAT, or TOEFL

• Income-Related Documents

1. Bank statements, especially for the last 1-2 years.
2. Income tax returns (ITR) in the case of a self-employed person.
3. Salary slips in the case of a salaried person.

• Co-signer Information

1. Identification documents such as Aadhar or PAN Card.
2. Evidence of financial documents that represent the ability of the co-signer to repay the loan.

• Collateral Documentation

For loans requiring collateral, allotment letters and possession letters are needed.

Interest Rates for International Student Loans for Studying Abroad

There are several prominent banks and financial institutions in India that offer great student loan options. To get the best deal, an applicant needs to be aware of all these options. The table below contains interest rates charged by various banks:

It is important to note here that these interest rates are subject to change. Factors like loan amount, the course of study, the country of study, the applicant’s profile, etc. Affects interest rates. It is recommended that the applicant researches and compares the different loan options before deciding.

Application Process

Once you decide to take a student loan, it will be helpful to start the application process early. It takes a lot of time in the entire loan approval and disbursement. Mentioned below is the general step-by-step process to apply for a student loan:

1. Firstly, ensure the course you plan to study is recognized by the bank.
2. Determine the loan required and the funds you can arrange on your own.
3. Compare education loan offerings from different banks to find the best fit.
4. Once you select the best option for yourself, you need to fill out the loan application form. Following this, submit it to the chosen bank to proceed further.
5. Once it’s approved, the bank will provide a loan document. Make sure you go through the terms and conditions mentioned in the document carefully.
6. Upon approval, the bank will disburse the funds in instalments or as requested by the university.

Things to Remember

During the application process, It is important to pay attention to things like moratorium period, loan margin, and exchange rate fluctuations.

• Moratorium Period

It is the time when you don’t need to make loan repayments after the course completion. The moratorium period varies across different banks and financial institutions.

• Loan Margin

Banks typically don’t cover 100% of the education cost. Most of them offer around 90% of the loan amount. The applicant needs to arrange the rest 10% which is known as the loan margin.

• Exchange Rate Effect

The disbursed loan amount can be impacted by exchange rate changes. Make sure to calculate the amount you’ll receive at disbursement to have better clarity.

How Can Manya – The Princeton Review Help You?

Choosing Manya’s comprehensive loan services will be extremely helpful for you. You will get access to a one-stop solution for your international education financing needs. Following are some of the benefits you will receive at Manya-The Princeton Review:

• Diverse Financial Options

You will get access to a variety of financial options tailored to your specific requirements.

• Personalized Guidance

Experts at Manya provide personalized guidance. This will make the loan application process smooth.

• Convenience

All the aspects of the loan process are managed by Manya on your behalf. This will help you save time and effort.

• Enhanced Approval Chances

The applicant gets a chance to leverage Manya’s strong relationships with financial institutions. This helps in further improving the chance of loan approval.

• Streamlined Path to Education Abroad

Manya provides a streamlined process to the applicant. This makes navigating the complexities of international education financing easy.

Conclusion

International student loans for studying abroad can be beneficial in dealing with financial hurdles. Students need to meet certain requirements to be eligible for the loan. Also, they need to submit documents for the application process. Both education loan eligibility criteria and documents required can vary from bank to bank.

Experts at Manya – The Princeton Review can help you with streamlined access to reliable financial institutions. This will enhance your loan approval chances with the help of personalized guidance.