Higher education shapes perspectives , unlocks potential and significantly expands career opportunities. However, rising costs of quality overseas education can place this dream out of reach for many students.
Education loans for abroad studies help bridge this financial gap by providing funding access for students to attend globally reputed institutes and acquire specialised skills needed to excel professionally today. A student loan for studying abroad is a financial instrument that not only covers tuition fees but also extends support for various expenses like accommodation, travel, and study materials.
By facilitating access to renowned international institutions, education loans transform aspirations into attainable goals. However, before applying for a student loan for abroad, it is essential to understand its intricacies.
This article will highlight everything you need to know about education loans for foreign education so that you can make an informed decision.
What are education loans for foreign education?
Education loans are credit facilities designed specifically to finance higher academic pursuits of students. Under education loan for abroad studies schemes, financial institutions provide funding to cover costs related to pursuing approved full-time graduation, post-graduation or professional courses at recognised overseas institutes.
Study loans for abroad cover expenses like college/university fees, examination applications, purchasing books and supplies, reasonable accommodation and commuting costs during the study tenure among others, to ensure the steady progress of the students.
Benefits of availing of an education loan
Taking a student loan for abroad provides many benefits. Besides financial assistance, it comes with systemic advantages enabling students to study stress-free and realise their full potential.
1. Meet rising costs of quality education: With top global universities charging high fees, an education loan is a viable funding avenue for students.
2. Flexible and customised financing: Study loans for abroad provide customised financing aligned to specific requirements of courses and universities. Loan repayment schedules are based on the personalised needs of the students. Lenders offer tailored loan schemes for pursuing degrees internationally.
3. Specialised loan schemes: Students can access specialised student loans for overseas study schemes based on their chosen course types. Specific schemes for overseas studies take care of financing needs from visa applications to travel requirements.
4. Tax benefits: Borrowers can avail of tax benefits on interest paid on study loans for abroad under Section 80E of the Income Tax Act.
5. Moratorium period: Most lenders offer moratorium periods after course completion before borrowers need to begin paying the loan EMIs. This period helps students focus on their job search to achieve income stability post-studies before the repayment starts.
Eligibility criteria for applying for an education loan
To avail of a student loan for studying abroad, applicants need to fulfil the following eligibility parameters:
1. Nationality: The applicant must be an Indian citizen.
2. Age: You must be between the ages of 18 and 45 and pursuing an undergraduate, postgraduate program, executive MBA, or other vocational courses.
3. Academic record: Students need to have a proven academic record.
4. Courses covered: Students need to have current admission offer letters from recognised universities in graduate, postgraduate, executive or doctorate courses. Students who are pursuing graduate or postgraduate courses in an overseas university are also eligible for student loans for overseas study.
Essential documents required for an education loan
To enable the seamless processing of study loan for abroad applications, students need to submit scanned copies of the following documents:
1. Identity and residency proof: Passport, PAN Card, Voter’s ID, Driver’s License
2. Academic credentials: 10th and 12th Marksheets, Graduation Marksheets, University Admission Letter, Standardised Test Scores
3. Financial documents: Last 3 years’ ITR, last 3 months’ salary slips, last 2 years From 16, bank statement of last six months, business proof and balance sheet and P&L account.
Steps to follow to apply for an overseas education loan
Before applying for an education loan, thoroughly research tuition fees, living expenses, travel costs, and other requirements associated with your overseas education. This research will help you determine the total cost of your education abroad.
Based on these findings, customize the loan amount that you will need. Once you have a clear understanding of your requirements, follow these steps to apply for an overseas education loan:
1. Application form: Start the online application for a student loan by filling in basic details on the lender’s website or by visiting the financial institution in person.
2. Document submission: Submit the required documents to the lender after receiving confirmation of your basic loan eligibility.
3. Verification: The lender will then verify your education loan application and the submitted documents.
Once approved, the sanctioned loan amount will be disbursed into your bank account.
Get an education loan with Tata Capital!
Education loans for foreign studies serve as crucial financial tools that empower students to pursue their academic aspirations at globally renowned institutions. These loans offer flexibility and customisation aligned with specific course and university requirements. Specialised student loans for studying abroad schemes cater to the diverse needs of students pursuing degrees internationally. Additionally, borrowers can avail themselves of tax benefits on the interest paid on education loans under Section 80E of the Income Tax Act.
At the same time, it is essential to ensure that you secure a student loan for studying abroad from a trusted financial institution. However, with so many loan options available, how can you decide the one that fits all your needs?
As a leading financial services provider, Tata Capital offers competitive interest rates and maximum flexibility for overseas education loans. With loan amounts of up to Rs. 200 lakhs and tenures of up to 13 years, Tata Capital empowers students to access best-in-class institutes globally.
With an easy online application process requiring no collateral for loans below Rs. 75 lakhs, Tata Capital ensures a quick, hassle-free loan approval experience. Tata Capital helps you invest in a brighter future for yourself by enabling easy access to finances. We aim to ensure that financial constraints do not interfere with any academic journey. So, make your global education dreams a reality with Tata Capital’s education loans today!
31 July 2024
6 mins read
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