Education loan for studying in a foreign land can be life-changing. But taking that leap doesn’t come as easy. When a student plans to study abroad, the aspect of finance is what everything else revolves around including the program, the duration of the program and the destination itself.
But with the provision of loans, students can dream high with planning and management of their earnings. Student abroad loans have enabled student’s dreams of taking up the desired program of interest in a foreign land to become a palpable reality.
The usual criteria of Indian banks for applicants of a study loan are that the applicant must be:
• A citizen of India
• 18 years or older to take a loan in her/his name, else one of the parents has to do so;
and has
• A good academic background
• Applied for a technical or professional course (in most cases)
Even if the candidate is applying for a loan to study abroad, they need to apply from India (or their home country) despite the fact that almost all Indian banks have their branches in Canada.
In order to get a loan sanctioned, the applicant must assure the bank, in the form of a few documents which once verified, gets the loan approved.
• (Proof of admission) - Admission letter from university/institution
• Application form of the loan
• Passport size photographs
• Academic documents such as certificates and mark sheets
• Documents of all qualifying exams - GMAT, IELTS etc
• Resident proof of the student applicant and the guarantor
• Statements of borrowers bank accounts (last one year)
• Income proof of the guarantor(the person who is to repay the amount is the applicant is unable to)
The requirements vary with the banks; it is advisable to check requirements and rules and regulations beforehand.
The process of application of the loan comes in once the candidate works out the amount s(he) requires apart from the funds they can arrange themselves. There are various parameters on which loan offers vary and the applicant has to carry out a research to find out what suits them the most. Loan offers can be compared on these parameters:
• Interest rate
• Processing fee
• Expenses covered under the education loan
• Loan processing time
• Prepayment terms and duration
If the amount of loan exceeds INR 7.5 lakh, then the tangible assets are needed as collateral security and parents have to be co-borrowers for the loan. The bank will verify the property against mortgage and value before sanctioning the amount of the loan.
Different banks offer expenses for various aspects of education. Generally, an education loan includes the following costs besides the tuition fee:
• Hostel fee
• Travel expenses
• Cost of books and other study material
• Laboratory fee
• Cost of a laptop (if required for the course)
• Expenses for project work or study tours
• Subsidized loans – these are specifically for undergraduate students with financial needs as determined by their attendance cost.
• Unsubsidized loans – These are for both graduate and undergraduate students and are not based on financial needs.
It starts after a period of one year to six months after the completion of the course (whichever is earlier), once the candidate gets the job. The whole amount has to be paid in 5 to 10 years once the repayment starts. The conditions of repayment vary with the banks’ rules and conditions covered under the loan scheme.
The decision of studying in Canada can be financially challenging. But if you’ve set your mind and heart to it, no obstacle is insurmountable. The dream of studying in one of the top Canadian colleges and universities isn’t as far-fetched as it may seem, now that loans are approachable.
For all kinds of queries, feel free to contact our smart advisors for guidance regarding visas, applications and finance. Just dial our toll-free 1800 890 1775 or ping us on our Instagram handle and we’ll get back to you.
