As per data published by the Ministry of External Affairs, over 13 Lakh Indian students studied abroad in 2022. The countries on the list range from Australia and the United Arab Emirates to Vietnam and the Netherlands.
Given the exposure studying abroad gives us, not only educationally but culturally and socially as well, pursuing international courses has come to become popular among Indian students. What’s more, leading financial institutions offer convenient education loans to help students finance their dreams.
However, education loan application processes and loan approvals can be overwhelming. If you’re someone who is wondering how to get a loan for study abroad or how to apply for an education loan abroad, you’re in the right place. Here, we give you all the information you need for a hassle-free loan application process.
Important Aspects of an Education Loan Application Process
Before we discuss the application process for education loans, let’s look at some of its crucial aspects.
1. Type of Education Loan
Education Loans can be secured or unsecured. If you have an asset that you can list as collateral, a secured education loan can be a good choice. Alternatively, you can apply for a no-collateral education loan as well.
2. Education Loan Lender
Be sure to compare lenders based on their loan interest rates, tenures, eligibility criteria, list of documents required, processing fee, additional charges, overall application process and time, etc. This will help you find a lender that meets your unique financial needs.
3. Eligibility Criteria and Documentation
While the eligibility criteria will vary with the lender, here are some general criteria you might have to meet for a successful loan application process:
- You should have completed 10+2/diploma
- You should be between the ages of 18 and 35 years
- You should require the loan to pursue education from a listed, recognised and accredited institution in the country or abroad
- You must be able to provide a pre-admission sanction document, scores on entrance tests such as GRE, GMAT, etc., 12th/HSC results, or a document confirming your admission
- Your parents, siblings, spouse, grandparents, parents-in-law or maternal/paternal uncle must be a co-borrower
Additionally, you might have to furnish the following documents:
- Proof of Identity: PAN Card, Passport
- Academic Documents: 10th mark sheet, 12th mark sheet, available semester mark sheet/transcript, degree, exam scores
- Financial Documents: Salary slips for the past three months, Form 16 of the previous two years, etc.
Education Loan Application Process
The process of how to get a student loan for abroad studies varies depending on the type of education loan and lender. Here is the general application process for both education loan types.
How to Apply for Secured Education Loan for Studying Abroad
Step 1: Navigate to your chosen lender’s website and complete the online application form. Alternatively, you can visit their nearest branch to submit the form with the documents.
Step 2: Enlist the services of a lawyer or a valuator to gain a valuation report on the asset you plan on listing as collateral.
Step 3: The lender will send the documents to their education loan processing division. A loan processing officer will analyse your loan application and verify it.
Step 4: The loan processing officer will sanction the loan, once your application is approved. You will be required to sign some documents.
Step 5: You must visit your lender to complete the property mortgage process once your visa is approved.
Step 6: Lastly, a disbursement agreement is signed, and the funds are disbursed.
How to Apply for Unsecured Education Loan for Studying Abroad
Step 1: Navigate to your chosen lender’s website, complete the online application form and upload all necessary documents. Alternatively, you can visit their nearest branch to submit the loan application with the documents.
Step 2: The lender will review your loan application as per the eligibility criteria and verify your documents. The lender will sanction the loan and inform you of the same, once your application is approved.
Step 3: Lastly, you will have to sign the loan agreement and pay the processing fee to complete the process.
To Sum Up
Applying for an education loan to pursue your studies abroad can be overwhelming. However, by following the steps we mentioned above, you can sail through this experience easily.
If you’re seeking a reliable and trustworthy financial partner to source your education loan from, look no further than Tata Capital. Tata Capital offers education loans at competitive interest rates, easy eligibility, flexible repayment tenures, hassle-free documentation and a quick application process. So, apply for a study loan from Tata Capital today!
05 November 2024
4 mins read
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