Finance & Loan

Finance & Loans

The number of students opting for abroad education has increased exponentially in the past few decades. Also, there is a drastic increase in the number of students opting for overseas education loan due to increase in the expenses of quality education abroad. Today there are numerous lenders offering loans to students for abroad education. There is, however, some difference in the requirements for overseas and Indian education loans. In general, when applying for a study loan abroad, you must keep in mind the following criteria:

  • A co-applicant is a must (could be parents, a sibling or a spouse )
  • For loans between INR 4 – 7.5 lacs, a third party guarantor is required
  • Collateral needs to be provided for student loans above INR 7.5 lacs
  • Loan repayment commences 6 to 12 months after course completion
  • If a student goes abroad, lender recovers the remainder from co-applicant

Lenders have their own criteria developed for the upper limit of the loan, the interest rate to be charged and the period and mode of repayment. Lenders usually have some pre-approved courses and institutions and usually sanction education loans on the basis of the quality of the institution, relevance of the course to career options, credit worthiness of the guarantor or co-applicant.

Education loan for abroad usually covers:

  • Tuition fees
  • Charges for examination, library, laboratory and hostel
  • Cost of purchasing books, equipment, instruments and uniform
  • Travel expenses for study abroad
  • Caution money, refundable deposit, etc.
  • Study tours, exchange programs and project work

Documents required for loan:

  • Mark sheet for last qualifying examination for school and graduate studies in India
  • Proof of admission to the course
  • Schedule of expenses for the course
  • Copy of letter confirming scholarship, if any
  • Copy of Foreign Exchange permit (if available)
  • Two passport size photographs
  • Statement of borrowers bank account for last six months
  • Income tax assessment of last 3 years
  • Brief statement of borrowers assets and liabilities
  • If not a customer of the lending bank, provide proof of identity and residence

If you are a student from India aspiring to study abroad, you can make the process easier by choosing to apply through Pacific Educational Consultants. We have been providing high quality education consultancy service to Indian students for decades & have been helped thousands of students to identify the right studying opportunities abroad. Contact us today for more information on education loan for overseas education.