How to apply for educational loan in India for foreign studies or to study abroad


Want to apply for education loan in India for foreign studies or to study abroad? Read the following article to know all information you need to know about education loan to study abroad. Eligibility criteria, documents required and rate of interest for availing education loan in India are also given in detail.

Now a days, many Indian students are eager to pursue higher studies in foreign countries as the foreign countries are providing quality education for the students. But studying abroad is a costly affair and majority of the Indian students cannot afford the fees of the foreign course. Many banks in India are providing education loans to the needy students to fulfil their dreams of pursuing foreign studies. Before making any final decision our experts recommend you to know how to choose the best educational loan in India. So here we brought you the complete details for getting the educational loan from Indian banks without any hassle.



Eligibility criteria for getting educational loan in India for foreign studies


In order to avail educational loan from Indian banks to pursue foreign studies, you need to fulfil the following conditions.
  • Student should be Indian national in order to avail the loan from bank.
  • Student who wants to take the loan, should have undergone the admission test i.e., entrance test conducted by the foreign institution or college or university.
  • The student should have been selected for the foreign course by the university or college in order to avail the educational loan.




Documents needed for getting educational loan in India for foreign studies


Following documents are to be submitted by the student who wants to take loan.
  • Admission proof of foreign studies is required.
  • Mark sheet of the student will be required by the bank.
  • Fees structure of the course is required.
  • You should have confirmation letter for the scholarship in order to take the loan.
  • You should take recent passport size photographs with you. Bank generally needs two to three photos.
  • Borrower i.e., parent of the student or student himself if eligible must submit his income tax assessment of previous two years.
  • Borrower should also required to submit the statement showing the assets and liabilities. By this the bank will come to know the paying capacity of the borrower.
  • Address proof is also required if you don't have a bank account in the bank from which you are taking loan.

In general, you need the above documents to take the loan from bank to pursue the education in foreign. But it is recommended for you to check up with the bank officials about the documents required to take the loan.

Margin of educational loan for foreign studies


Following is the margin of educational loan laid out by the Government of India.
  • For four lakh rupees and below there will be no margin.
  • There will be 15% margin for the loan amount of more than four lakhs.


Rate of interest and processing fee charged by the banks on educational loan


Currently almost all banks provide the educational loan upto four lakh rupees with the interest rate of 10.75% per annum. And for the loan of more than four lakh rupees, banks are charging interest rate at 11.75% per annum. However, these interest rates are very fluctuating depending on the RBI policies. So we suggest you to go through the latest bank rates in advance. Also check out the various processing fee charged by the banks well in advance. From doing so, you can have a brief idea of getting the loan from bank which offers you more money with lesser deductions in the form of processing fee and other charges.


Comments

Author: K Mohan28 Sep 2014 Member Level: Platinum   Points : 4

While I appreciate the author for taking pain to bring those details on how to obtain a loan from bank for undertaking foreign studies may look good for reading but in reality it is not that easy to obtain. The conditions, the documentations that are required are very cumbersome, and many students preferred to arrange private money and went abroad for studies. I think the bankers must form a single window system through which the process of obtaining loan should be a easy procedure. Because the students wont have time to wait for the loans once admission is got.



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