How to Apply for Student Loans to Study Abroad?

Have you been wondering about managing or arranging finances for international education? Then you must also have considered opting for an education loan. A loan can be advantageous both in cases of availability or unavailability of funds.  The fundamental advantage is its nature of repayment in installments, which also comes with some interest. 

A deliberate consideration of interest rates, moratorium periods and other charges of different lending institutions is required before applying for an education loan. This blog will cover all aspects, from eligibility to getting an education loan.

Eligibility for Education Loan to Study Abroad 

Most lending institutions consider the applicant’s profile ready for processing if their admission to an educational institute abroad is confirmed. The eligibility requirements are a combination of criteria that have to be fulfilled to avail the student loan in India. Checkout the table below for more details:

NOTE – The eligibility criteria for an education loan also considers the co-applicant’s income or assets & the criteria stated above may vary with the lending institution and their specific policies. 

Documents Required for International Education Loan 

Documents required to apply for an education loan include proof of address, scores, financial proof, proof of admission and more.  The list of documents required to study in Canada may vary with the chosen lending institution, but documents valid for most loans are given below.

• Confirmed admission from the international educational institution applied to/ pre-admission sanction/entrance exam scores (like GRE, GMAT), class 12 results.

• Previous mark sheets

• Proof of age & identity 

• Proof of address 

• Latest salary slips of the candidate or co-applicant

• Latest bank statements, audited balance sheet, proof of turnover

• ITR with income computation

• Complete application form with signature

• Latest passport-size photographs

• Appropriate student visa for the chosen country

How to Apply for Education Loan to Study Abroad?

Application for an education loan includes a meticulous compilation of documents and details and choosing the most suitable lending institution. Given below are the steps to apply for a loan with the assistance of leading international consultants.

Processing Time for Education Loans to Study Abroad

Processing time is the time it takes for the lending institution to verify personal, financial and academic details. It takes 14-25 days for an institution to process and sanction the loan. Processing fee typically ranges from 0.5% to 2.5% of the total loan amount and this varies with the bank or financial institute offering it. In some cases, an additional application fee will be charged.  

The processing time for NBFCs ranges from 7 to 45 days, with a processing fee of 1-10%. Both processing time and fee may differ from the given days and percentage according to the loan product and whether or not collateral is involved.   

Considering the processing time, it is smart to apply for an education loan to study abroad 90-100 days before the session begins. The 3-month timeframe allows the candidate and guardians to complete the necessary documentation and timely disbursement of funds to the institute. 

Conclusion 

Student loan application for international education is an important part of the student’s journey with multiple calculations of interest rates, processing time, payment terms, and more. The eligibility criteria are set by the lending institutes like banks and NBFCs, so the application for a loan can be made by checking the suitability of the above given factors, once the candidate stands eligible for a certain loan. 

It is also advisable to apply for it around 3 months in advance from the beginning of the session in the destination country. For assistance on education loan applications, programs and universities abroad, connect in person or virtually with experts at Canam Consultants.