What is the process of getting education loan for study abroad?

Indian students have gained a considerable interest in study abroad and the trend has seen exponential growth in past decade. Owing to huge expense involved in overseas education, the students and their parents often have to opt for education loan. There is a proper procedure that has to be followed to become eligible for loan and after becoming eligible, there is a thorough documentation conduct that has to be fulfilled.
Eligibility requirements –

  • The applicant must be Indian citizen.
  • The applicant should have attained the age of maturity, otherwise his or her parents have to acquire loan on behalf of student.
  • The applicant’s academic record should be promising.
  • The course and institution in which student has applied should be recognized and credible one.
  • The course opted for should have rewarding job opportunities in the future so as to assure the bank that student will be able to repay the loan.

Documentation requirements –
Acquiring study loan is a lengthy procedure and requires plenty of documents which are explained below –

  • Loan application form
  • Passport size photographs of applicant and co-applicant
  • Permanent and temporary accommodation address of applicant and co-applicant
  • Academic documents like mark sheets and English Language Score Card.
  • Income proof of the co-applicant
  • In case of collateral, documents required will be property title deed, building approved plan, building approved plan, NOC for a mortgage from builder or society.

Loan Application Process –
It is a step by step process from loan application to document submission to loan approval to loan disbursement, so it is always advisable to initiate the process in advance. Let us understand the process in detail –

  • Figure out the credibility of the course and institution as Banks only offer study loans on recognized ones.
  • Draw an estimate of the finance you require from bank and how much you can arrange on your own.
  • Then, compare the different study abroad loan schemes provided by different banks and go for the one that appeals to your case and circumstances best.
  • Decide upon the Bank and loan amount required and then, approach the Bank by filling out Loan Application Form.
  • If Bank finds your case and circumstances suitable, it will issue you a loan document which encompasses all the elements relevant to loan.
  • After completion of signature formalities, Bank will disburse the loan amount in installments or as demanded by the college or university.

Various loan schemes offered by Indian Banks include HDFC Bank Education Loan for foreign students, SBI student loan scheme, SBI Global ED-VANTAGE scheme, Oriental Bank of Commerce Education Loan for study in India and abroad, etc. Now, you have learnt about the eligibility, documentation and process requirements for study loan abroad. If you require more information regarding study abroad, you can contact West Highlander Consultancy.