Acquiring a foreign qualification was a distant dream for many, even with decent financial backing, with virtually no loans being available, as the amount required was too much of a burden for most of them. Things have changed for the good, with banks both in public sector and private sector, offering educational loans for overseas studies, which has resulted in increasing number of students from middle class and lower middle class families materializing their overseas study aspirations, banking on these loans. However, there are many doubts in the minds of students and parents, especially with regard to its loan processing, documents required repayment etc. Let us look at the process one by one.
Figure out the total amount you would require
Before applying for an overseas education loan, it is always better to take in to account how much money you would require for the entire study abroad stint. One has to consider tuition fees, boarding and lodging expenses, books, insurance, travel cost etc before deciding on the loan amount required, so that even after getting an education loan passed, you are not cash strapped.
Now that you have clarity on the amount required, the next step would be to approach banks, most preferably those near to your place of residence, as it would make things smoother as far as the processing is concerned. Though one can consider public sector as well as private sector banks, Public sector banks should be your first priority, considering the lower interest rates, repayment options etc are concerned, whereas new generation banks are known for quick processing of such loans.
Check your eligibility
The most important thing to know is whether you are you eligible for an education loan. Enquire whether one’s parental income would suffice to meet the eligibility criteria, whether you have sufficient collateral security like house, flat, non-agricultural land or fixed deposit, to support the loan? These are vital in determining your eligibility for an education loan.
Have full clarity about the loan
Taking education loan is a big commitment, one which needs proper knowledge about different aspects of the loan one is taking. One should not only compare the rate of interest. Any decision to select a loan should be taken in to account consider many factors. Know the terms of your loan? What the interest rate will be? When the repayment period will begin? One should also consider other factors like flexibility to pay from abroad, online customer services etc. The golden rule is, do not leave anything to speculation.
Arrange documents according to the check list
Getting a check list and preparing necessary documents as per the check list can save your precious time and to expedite the processing. The documents generally required are as follows, but may vary from bank to bank
- Identity and proof of residence if you are not an existing bank customer
- Proof of admission to the course
- Schedule of expenses for the course
- Copies of letter confirming scholarship, etc
- Copies of foreign exchange permit, if applicable.
- Passport size photographs
- Bank account statement for the last six months
- Income tax assessment order not more than 2 years old
- Brief statement of assets and liabilities of borrower
Get a confirmation on the loan processing period
It normally takes 10 to 30 days for education loan processing, though it can stretch beyond that depending on particular cases. It is always better to apply for overseas education loan well in advance, anticipating any such possible delays so that you do not have a problem in securing admission owing to paucity of funds. Following up with the bank manager once in a week would help you gauge the movement of your file and take necessary measures accordingly.
Need more information on overseas education loans, contact Santa Monica study abroad Pvt. Ltd., the trusted overseas education facilitation with over 13 years of experience in the domain, facilitating admission to over 200 universities/institutions to 20 + countries across the world. Contact us on 0484-4140999.