Why student loans remain the best way to fund your overseas studies

Funding your child's overseas studies can be hard but a good way to overcome it is by taking an Education loan with a bank offering low-interest loan. Know how you find such a bank, important points to keep in mind while taking such a loan and what are your options in India.

Students do not want to compromise on the quality of their education. This desire pushes them towards top-notch universities overseas. Student loans are the best way to fund overseas education costs, with estimates suggesting the number of Indians applying to universities abroad via student loans will increase substantially by 2024.

What is a student loan?

A student loan, often called an 'education loan', is an amount borrowed by students from a bank or a financial institution to finance their higher education and related expenses. There are several types of student loans, and various repayment methods allow them to defer payments while in university.

What are the types of student loans available in India?

Indians can choose from domestic and abroad education loans. They can avail themselves of domestic education loans to finance their studies in India and abroad education loans to finance their studies abroad.

How to apply for a student loan?

Before applying for student loans, it is always advisable to know your future EMIs (Equated monthly instalments). A student loan EMI calculator can help you make this assessment with ease.

You need to enter details such as the loan amount, rate of interest, course duration, and loan tenure – which can be done easily using the sliders offered by IDFC FIRST Bank – and the EMI calculator will estimate your EMI amount. It is also essential to research the interest rates of various education loans to choose the best lender. You can apply for a IDFC First Bank student loan by following these steps:
  • Fill out the application form: As a first step, students must fill out the application form for the loan and produce their passport size photographs and graduation, high school, or secondary school certificates.?
  • Personal discussion: The bank or financial institution conducts a personal discussion with the student. It is aimed at gauging the student's past performance, academic record, and details related to the university where the student has applied.
  • Furnishing additional documents: Additional documents include your ID, address proof, age proof, signature proof, KYC (Know Your Customer) documents like Voter ID and PAN card, parents' income proof, and any documentation required for pledging collateral.
  • Approval / Rejection of loan: If the student is compliant with the eligibility criteria for applying for a student loan and has a guarantor whose credit history complies with the terms put forth by the bank or financial institution, the loan is approved and disbursed.

Which is the best student loan in India?

The best education loan caters to every requirement of a student in India or overseas. IDFC FIRST Bank's education loan is highly recommended. It has been designed to fit the requirements and solve the challenges faced by Indian students. IDFC FIRST Bank education loan offers solutions beyond education finance and provides help and guidance to students on decision-making on destinations, institutes and courses with IDFC FIRST Bank UNI app https://firstuni.in/


Author: Umesh11 Aug 2022 Member Level: Diamond   Points : 1

This is a very detailed and exhaustive article regarding the education loan offered by the banks in our country.
Planning and aspiring for education courses abroad is a costly affair and everyone cannot afford that. Education loans are the only solution in such a situation.

  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name: