Everything You Need to Know about Education Loan for Studying Abroad
Nelson Mandela once aptly said, “Education is the most powerful weapon which we can use to change the world.”
In today’s competitive world, earning a degree from a reputed institution is a must to lead a successful life. With the mushrooming of the education loan market, any meritorious and deserving student can avail a Higher Education loan from an NBFC to finance his or her studies. The benefits include easy availability, entire coverage of education-related expenses, availability for a wide range of courses and flexible tenors and prepayment options. It also has certain benefits under Section 80E of the Income Tax Act.
The key factors to be kept in mind while availing a Personal Loan for Higher Education purpose is the personal loan interest rate, collateral, loan margin, processing fee, co-applicant requirement, repayment duration and moratorium period. For example, NBFCs like Bajaj Finserv offers personal loan for higher education up to Rs. 25 lakh for which you pay up to 45% lower EMI. It boasts of instant approval and loan disbursal in 24 hours, and a Flexi loan facility for which you pay only interest as EMI and prepay the amount at your convenience.
Course Eligibility Criteria
While most of the NBFCs offer loans to students for their academic pursuits across full-time or part-time, undergraduate or postgraduate, degree or diploma, at a government or private institution abroad, it is prudent to do your own research and check if the lender has its own list of reputable and pre-approved universities.
Your finance provider needs to be sure that you not only complete your course but also get a job, when you’re borrowing funds from it. Some of the eligible institutions that are preferred abroad include:
- Universities of good repute and standing
- CPA in USA, CIMA-London, etc
The courses include but are not limited to the following:
- Hotels and Hospitality
- Fine arts and design
- Vocational training and technical training courses such as aviation and air-hostess training
Student Eligibility Criteria
The first thing is to check whether you are eligible to apply for the loan or not. For instance, the eligibility for personal loan for higher education in Bajaj Finserv is as follows:
- You must be between 25 and 58 years of age.
- You must be a salaried individual employed with an MNC, public or private company
- You must be a residing citizen of India
- Your minimum net salary should meet the specific criteria as per your city of residence
So while you’re contemplating to opt for the education loan, here’s handy checklist for the documents you require to submit to set the loan process rolling:
For your Know Your Customer(KYC), you’ll need to provide a self-attested photo ID and an address proof. Run a check to see if you have one each of the following:
- Photo ID proof-
– Pan card
– Aadhar card
– Driving license
– Voter’s identity card
– A signed verification letter from a recognized public authority or public servant for your identity and residence
- Address Proof-
– Bank account statement
– Ration card
– Aadhar card
– Voter’s ID card
– Telephone bill/ water bill/ electricity bill
– Allotment letter issued by a government department
You’ll also need to provide your last three months’ salary account statement, your Employee ID card and salary slips of the previous two months. Also, don’t forget to carry along the originals as well!
Additional Reading: Education Loans for Indian Students to Study Abroad
Education loans boost careers and enhance the growth and development of the citizens and the country. Once you receive the offer letter from your dream university, take ample amount of time to do your own research and shortlist education loan providers, accordingly. Get in touch your education loan provider, should you have any concerns. And let your mirrors turn into windows as you secure funding for your studies abroad!
You could apply online and follow these simple steps:
- Fill in your personal, financial, and employment details
- To get instant online approval, select the required loan amount and tenor
- Submit the required documents with the representative, who will reach out to you
- Receive the money in your bank account within 24 hours