The number of students opting for higher education abroad has increased exponentially in the past two decades. Also, there is a drastic increase in the number of students opting for overseas education loan due to increase in the expenses of quality education abroad. Today there are numerous lenders offering loans to students.
Education loan for India is also available for students wanting to study in Indian colleges. There is, however, some difference in the requirements for overseas and Indian education loans. In general, when applying for a study loan, you must keep in mind the following criteria:
- 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
- If a student goes abroad, lender recovers the remainder from co-applicant
Lenders 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.
Lenders 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.
For those applying for education loan for India, lenders will look for AICTE or UGC approval
- 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
- Mark sheet for last qualifying examination for school and graduate studies in India
- Proof of admission to the course
- Schedule of expenses for the course
- Copy of letter confirming scholarship, if any
- Copy of Foreign Exchange permit (if available)
- Two passport size photographs
- Statement of borrowers bank account for last six months
- Income Tax assessment order not older than two years
- Brief statement of Borrowers Assets and Liabilities
- If not a customer of the lending bank provide proof of identity and residence
- SSC.HSC or Graduation mark sheets whatever is applicable KYC
- Age Proof
- Signature Proof
- Identity Proof
- Residence Proof
- Application Form and Photographs Income Documents of parents/guardian Collaterals in the form of FDs I Immovable Property
If you are a student from India aspiring to study abroad or in a good Indian university, you can make the process easier by choosing to apply through MARVEL Education Overseas Consultants. We have been providing high quality education consultancy service to Indian students for decades MARVEL Education have been helping thousands of students each year to identify the right studying opportunities abroad.
Backed by a team of qualified and dedicated staff, MARVEL Education offer valuable advice to clients and help them find the right university and study opportunities in countries like Canada, US, Australia, UK, New Zealand and more. Contact us today for more information on education loan for India and overseas education loan!