Education loan for abroad studies

1. Education Loan for Abroad Studies

2. Introduction to Education Loans to Study Abroad Money that is borrowed by a person to finance abroad education-related expenses. You can go through the first episode of the YouTube series- Loanflix to get an overview of the abroad education loans. Free of cost service Govt. Funded Organization

3. Benefits of applying for an education loan Easily available Repayment tenure usually starts 6 months after course completion Entire education-related expense coverage – tuition fee, admission fee, living expenses etc. Available for a wide range of courses Income tax benefits can be claimed

4. Interest Rate Collateral Different Aspects of an education loan for abroad studies Processing Fee Loan Margin Co-applicant/co-signer Repayment tenure Moratorium period

5. Interest rate It is the cost of borrowing money, expressed as a percentage of the loan’s principal amount. Different banks charge different interest rates on education loan for studies abroad. 

6. Collateral Collateral is an Immovable property (House, Flat or Land) or any other asset, preferably liquid asset, such as FD, shares, bonds, gold etc. that a borrower offers to a financier to secure the loan.

7. Loan Margin Loan margin is the amount that the student/borrower needs to incur in order to cover the entire education expenses. Public sector banks such as SBI provide 90% expense coverage, the remaining 10% is the margin.

8. Moratorium Period The moratorium period refers to a time period during the loan term when the borrower is not required to repay the loan amount or EMI. Usually, the moratorium period is course duration plus 6 months or a year.

9. Repayment Tenure The period during which you are allowed to make payment via EMI in order to repay the loan amount. The average repayment period is for 5 to 7 years as per our market survey. However, most of the banks that provide education loan for abroad studies have 10 to 15 years as the repayment tenure.

10. Co-applicant/Co-signer A co-applicant is a person who will qualify for repayment of the loan, in case, the primary borrower of the loan is unable to do so. Parents; Spouse; Parents-in-law or Guardian; Siblings are accepted as co-applicants. 

11. c Processing Fee Banks charge an application processing fee which is at times refundable, depending on the bank you will avail a loan from. It is between INR 5000 to INR 10,000 for public and private banks but for NBFCs, it is usually 1% to 1.5% of the loan amount.

12. Procedure- Education loan for abroad studies WeMakeScholars provides the list of documents and connects you with the nearest bank branch. Go to the bank branch with required documents and acquire details of the lawyer and valuator. Fill the online application form Step 1 Step 2 Step 3 Post visa approval, student visits the bank and completes the property mortgage process. Disbursement agreement is signed and disbursement of loan amount takes place. Step 6 Step 5 Step 4 After the loan is sanctioned, you will be required to sign the documents Complete documents are sent to RACPC or RBO. The lawyer and the valuator will submit the reports to the bank branch

13. c Documents required- Education loan for abroad studies Filled Application Form Photos and Photo ID– Applicant and Co-Applicant PAN card, Aadhaar card, Driving license, Passport or voter’s ID Proof of Residence and Proof of Admission to a university Documents related to your Academics Financial statement Co-Applicant’s Income Proof Immovable Property Documentation, if the collateral is needed

14. c Free of cost service Thank You Govt. Funded Organization