The cost to study abroad rises every year as universities around the globe increase their tuition fees. But it doesn’t mean that you don’t have any ways to overcome this issue. There are numerous ways to beat these obstacles and fulfill your study abroad dream. What you should keep in mind is that you are going to make a lifetime investment with your study abroad experience.

So you must be inquisitive to know what all things are covered in the education Loan. An education loan primarily covers your tuition fees, study material, other fees, accommodation and board fees, transportation fees, insurance fees, and your living expenses. It will cover all your educational expenses. The bank won’t actually transfer the amount to your account, it will be credited to the University’s account at the beginning of every year or semester, as required.

Keep checking the well-known nationalized and co-operative banks giving loans at low interest rates and also nationalized public banks, non-public banks and other financial institutions. Global Opportunities will assist you in the entire procedure of choosing the right education loan, ranging from choosing banks to the specified documentation, eligibility criteria, interest rates and compensation amount etc.

Listed below are certain points that one ought to consider to avail study loans.

Eligible Courses:

• All recognized Courses having employment prospects
• Graduation/post-graduation/diploma courses/professional courses

Expenses included in the education loan are:

• Airfare/travel expenses
• Admission /tuition fees
• Boarding and lodging expenses
• Books and stationary expenses
• Instrument/equipment’s etc. required
• The other educational expenses

Eligibility:

• The student ought to be an Indian national
• He ought to have secured admission to an expert/technical courses in abroad
• Age of the scholar must be between 18-35 years

Quantum of Loan:

• For studies abroad, the highest limit for a loan sanction is Rs.15-20 lakhs by banks
• Above Rs. 20 lakh loan is often sanctioned by some financial institutes and personal banks

Security Collateral:

• Up to Rs.4 lakhs – No security required for nationalized banks
• Above Rs.4 lakhs and up to Rs.7.5 lakhs–collateral as the satisfactory third party guarantee (Blood Relative)
• For loans more than Rs. 5 lakhs, one could deposit (Fixed Deposit /LIC) half of the specified loan sanction amount as collateral.
• Above Rs.7.5 lakhs – a combined responsibility of parents/guardian along with the tangible collateral security of appropriate price together with an assignment of future earnings of the scholar for the payment of instalments.
• Partial collateral is accepted by some financial institutions and banks.

Acceptable Collateral

• Residential/business property
• Fixed Deposit of the full loan amount with bank
• National Savings Certificates (NSC)/ Life Insurance Corporation (LIC) policies (Surrender value is taken into consideration)

Applicant & Co-applicant

• Documents ought to be executed each by the scholar and guardian as a joint receiver.
• The applicant is the student opting studies abroad
• A co-applicant is parent/guardian.

Tenure

• Repayment period would be 5-10 years
• Interest and principal are to be paid monthly later the primary disbursement made by few financial institutions even in case student has not yet travelled
• Repayment of principal to begin six months or twelve months posterior the completion of the course or on obtaining employment whichever is earlier
• Interest repayment is suspended within the moratorium period by few banks

Margin

• 15% of the loan amount is borne by the scholar on loans more than Rs.4 Lakhs.
• 85% is sanctioned by the bank
• 100% sanction is given by some establishments

Who are often a co-applicant?

• Any earning member of the family like Father/Mother/Brother/Sister/Spouse or Father in law/ Mother in law/Sister in law/Brother in law/Paternal/Maternal Uncle/Aunt

Tax Deduction

Education loans are eligible for tax deductions as per the Income Tax Act

As mentioned earlier, we hope that you’ve got a good understanding of the different ways to secure a loan. And also, if you are planning to enroll into your dream University, don’t hesitate to consult Global Opportunities.