Education loan abroad are limited to higher education only in India. Student loans for those who wish to go abroad and study, are available for those who are pursuing professional or technical courses that are approved by government bodies. Loans for students studying abroadare made available for the ones who have completed their SSC, i.e., 10th standard and HSC, i.e., 12th standard education. Getting a loan for your higher education for abroad could be one of the safest ways to finance your dreams without diving head-on into your savings. There are several factors that banks may consider before giving you education loan. Merit or percentage of a student is a good enough factor, albeit it does not restrict someone from securing education loan abroad.
Among the obvious factors such as collateral requirement and credit score of borrower(s), the banks take into consideration certain academic and merit factors, which are as follows-
Student’s merit
There are certain factors that need to be filled while applying for the education loan abroad. Apart from academic background, a student’s percentage, grades, achievements and recognitions need to be filled out.
Value of your course
Before a bank approves your loans for students studying abroad, the value of course is taken into consideration because it is this factor that will determine your repaying capacity and job prospects. This value is computed by the educational institution while deciding the education loan abroad in terms of repayment to the free available income. In most cases this ratio is like 60%.
Value of chosen college
How valuable is your college is an important factor that must be kept into consideration for calculating loans for students studying abroad. This helps the banks in figuring out repaying capacity and everything else. Higher ranked colleges are generally more expensive but banks are more ready to provide loans for studying abroad.
Do you need a minimum percentage for securing education loan abroad?
As such, there isn’t any rule which dictates whether or not a minimum percentage is required for the loan. You must however, have a secured admission in the university of your choice, along with the conditional letter of admission. As long as you have these two things, there wouldn’t be any trouble in applying for your education loan abroad.
Having said that, a good academic record is an edge for the students. Those with excellent merit background and great percentage secure overseas education loan from banks without any hindrances.
A good percentage is a determining factor for gauging earning potential
Having a good percentage is just a factor taken into consideration by banks since it helps them analyse your earning potential. Having a strong academic record helps your lender in gauging how much is your earning ability and this is important for them to understand the repayment.
A student’s profile is an important, but not conditional record or documentation that determines loans for students studying abroad. Of course, it provides a sense of security to the bank if you have good percentage, but in spite of that, you can secure overseas education loan if you have offer letter from your university.
Eduloans can help you figure out details of your education loan abroad in order to make the right decision. You can contact our financial counsellors and loan experts for the in-and-out of the process and we would be most ready to help you get the best deal in terms of Eligibility, Cost and Convenience.