Studying abroad can be a life-changing decision, but it is not simple.
Those who want to pursue higher education abroad but cannot get funding now have the option of paying for their education.
Not just that, as a student, it is essential for you to figure out your accommodation during the term of your education.
For example, a student living in Glasgow or Birmingham will have to look for student accommodation in Glasgow or student accommodation in Birmingham, which needs to be affordable and readily available.
As a student, your finances should sustain your overall stay during the term of your course.
This post will go over every element of school loans for studying abroad. Be it the loan application process, eligibility, or the paperwork required.
We will also discuss other aspects of student loans, such as Indian banks providing student loans and the role of a guarantor – and we will cover every detail for anyone seeking an education loan to study abroad.
Criteria for Applying for an Education Loan
The initial and most crucial step is determining whether you are eligible to apply for an education loan.
The general terms and conditions generally followed by any bank when obtaining an education loan are listed below.
Remember that each bank may have its own eligibility rules that must be followed when applying to that specific bank:
- The pupil must be a citizen of the country you are applying from.
- The student must be at least 18 years old, or their parents must take out the loan.
- The applicant must have a solid academic record.
- The applicant must have been accepted into a reputable foreign university/institution/college.
- Since banks favor job-oriented courses, the applicant’s intended course must be technical or professional.
What Documents Are Required?
The candidate must be fully aware of the documentation required to apply for a study loan in another country before applying for an education loan.
To apply for an education loan for international study, you must have the following documents:
- Completed application form
- Passport-size pictures of the applicant and co-applicant
- Photo ID: The applicant’s and co-photo applicant’s ID. It could be a PAN card, a driver’s license, a voter ID card, an Aadhar card, or a passport.
- Proof of residency: The applicant and co-applicant must provide proof of residency.
As well as academic papers, such as:
- The applicant’s grade sheet and certificates
- Mark sheet (Score Report) for GRE, GMAT, TOEFL, IELTS, and other relevant exams.
- Admission proof: A letter of acceptance from the university or college.
- Bank statements The co-bank applicant’s statements for the last six months.
- Income verification: Income verification for the co-applicant.
Procedure to Secure an Education Loan for Studying Abroad
The loan process takes time, from loan application to approval and disbursement. Thus it is always best to apply for a loan a little early.
To apply for a student loan, follow these steps:
- Determine whether or not the course you intend to pursue is recognized by banks.
- Determine how much financing you will need and how much you will arrange on your own.
- Compare the student loans offered by several banks for studying abroad and choose the one that best meets your demands. Fill out the loan application form and visit your bank after you’ve decided on a bank and a loan amount.
- The bank will provide paperwork outlining the loan terms when your loan is accepted. Following the execution of the loan agreement, the bank will disburse the monies in installments or as the university requests.
Things to Consider When Obtaining an Education Loan for Study Abroad
The borrower is not required to make any payments to the bank. This period varies between banks and may last for some time after completing the course.
Typically, banks do not pay the total cash required to fund the education, that is, 100%.
The majority of public sector banks lend 90% of the total amount, with the remaining 10% arranged by the candidate.
Currency Rate Effect
Always calculate the amount you will receive at the time of distribution since any fluctuation in the exchange rate can vary the amount you receive.
Although you can obtain a student loan as an international student, you should not. Other funding sources may be more reasonable and assist you in staying out of debt.
Before applying for a private foreign student loan, look at scholarships, grants, and school-based financial help.
Your native country may potentially offer loans or other forms of aid that are easier to obtain than an international student loan.
As a student moving to another country to study, there are many aspects to take care of, right from finances to accommodation.
Having the right house has a lot of impact on your overall experience of studying abroad.