Loan is an amount of money or assets which is shared with the applicant. It is a liability that an applicant promises to repay in future within the stipulated timeline. This is a simple definition of a loan, even though the financial system has created a more technically complex definition for it now. By and large, it means the same. Talking specifically about the education loan or study loan, it is defined as an amount borrowed by students to fund their education or pursue their career goals through courses for which they have applied. Education loan in India for study abroad has become quite popular with the students and professionals, alike.
Study loans can be for domestic education as well as for abroad. In this blog, the focus shall largely remain on study loan for abroad.
Types of Education loan in India for study abroad based on the type of course
- Study loan for abroad for degree/graduation
- Study loan for abroad for diploma/professional courses
- Study loan for abroad for post-graduation/doctoral/post-doctoral courses
Types of study loan for abroad based on collaterals/guarantee
- Secured loans- With collateral
- Unsecured loans-Without collateral
Education loan for abroad: how does it work?
Education loan in India for study abroad is meant to financially aid those students who are willing to take their leap of faith for the career, but lack funds to do so. Study loan for abroad is meant to sponsor not just your basic tuition fee, but also other connected expenses, such as travel, purchasing equipment and hostel fee. Provision of student loan is meant for repayment of interest amount than the original amount. The study loan EMIs or instalments are meant to be paid against student’s loan.
How to choose the best study loan for abroad?
It is not so simple to choose an education loan that is not too pricey. The process where you find the education loan in India for study abroad with the lowest rate of interest can be rather intimidating. Here are the top factors that you must pay attention to-
- Interest rate
- Loan Amount
- Processing fee and time
- Loan duration
- Expenses covered
- Margin money
- Moratorium period
Reasons why a loan may be declined
If you choose Eduloans as your loan partner, there are rare chances for your education loan to be declined by the bank. Our loan experts help you overcome all obstacles ad complete your documentation so that there is faster loan disbursal. Traditionally, if you approach a bank directly and your loan gets rejected, here are a few reasons why that may have happened-
- Poor CIBIL score
- Incomplete collateral documents
- Low income of borrower
- Conditional or no letter of acceptance from university you’ve applied to
- Institute/university not listed with the bank
- Course not listed with the bank
Benefits of borrowing study loan for abroad from registered banks
- Insurance facility is made available to you.
- There is complete accountability of all transactions.
- Rate of interest for overseas education loan is comparatively lower than NBFCs.
- You get additional features, such as health cover and part-payment.
- You get tax rebates and interest rate subsidies.
Benefits of borrowing study loan for abroad from NBFCs/non-registered banks
- Low processing time
- Option of Unsecured loans possible
- 24-hour loan disbursal, in certain cases
- Extra features, such as loan against bullion or movable property
- Wider eligibility for course and institutes
- Low moratorium period
Eduloans has helped over 15000 + students for getting the best education loan. We are a free platform and have had over 150+ google review’s . We are the best platform and helps you give further details about education loan in India for study abroad. You may hit us up for further guidance and redressal to your problems.