Education loan has solved the problem of the students who want to pursue their higher education from abroad. The number of students opting for education loan has incremented because the fee of the universities and colleges has increased. Many of leading banks are now offering education loan.
One must keep the following criteria in mind:
- A co-applicant is a must ( could be parents, a sibling or a spouse )
- For loans between Rs 4 – 7.5 lacs a third party guarantor is required
- Collateral needs to be provided for student loans above Rs 7.5 lacs
- Loan repayment commences 6 to 12 months after course completion or job
- If a student goes abroad, lender recovers the remainder from co-applicant
Banks have their own criteria developed for the upper limit of the loan, the interest rate to be charged and the period and mode of repayment.
Banks usually have some pre-approved courses and institutions and usually sanction education loans on the basis of the quality of the institution, relevance of the course to career options, credit worthiness of the guarantor or co-applicant.
Education loan for abroad usually cover (inter-alia)
- Tuition fees
- Charges for examination, library, laboratory and hostel
- Cost of purchasing books, equipment, instruments and uniform
- Travel expenses for study abroad
- Caution money, refundable deposit, etc.
- Study tours, exchange programs and project work
Mandatory Documents for Overseas Education
- All Academic documents of last qualification
- College/University Prospectus
- Offer letter of the college/university
- Complete course expenses
- Passport size photographs
- Balance sheet of borrower for last six months
- IT return
- Assets and Liabilities of borrower
Gateway Abroad’s assistance in Education loan
We provide complete guidance including all the basic necessities to apply for the education loan. We do have tie-ups with some of the leading banks in India.