Financial Assistance

Education Loan - For Studying Abroad

If you are interested to studying abroad in top Universities or Colleges, it can be expensive and if you are not eligible for scholarships then you can think of the option of a bank loan. A complete educational loan scheme has been established by the Government of India in association with Reserve Bank of India and Indian Bankers Association.

Educational Loan can help you in pursuing the course of your choice in the best overseas University. Loans are a very simple way to finance education abroad and easy to secure and also hassle free. The cost of education can bear by the loan from any Nationalized Bank and leading Private Banks.

The good part is that the rate of interest of the loan is lower than commercial rate. Loan repayment starts 6 months after course completion. Most students repay their education loan easily with 2 years after working abroad.

With the help of this scheme students can avail Bank loans up to Rs.20 Lacks, for higher studies depending upon the Banks terms & conditions and as per RBI Policy.

The Bank loan covers the expenses of:

  • College or University Fees
  • Living Expenses
  • Examination Fees
  • Expenses of Books, equipments, uniform etc.
  • Any other expenses required to complete the course like library, study tours, project work etc.

Procedure for getting Educational Loans:

No margin for education loans up to Rs.4 lacks & for loans above Rs. 4 lacks 15% margin for higher studies in abroad. As a security of education loan – Different banks have different requirements but:

  • Up to Rs.4 lacks No security at all
  • Above Rs.4 lacks up to Rs.7.50 lacks suitable third party Guarantee
  • Above Rs.7.50 lacks up to Rs.20 lacks 100% collateral security should be there in any of the form of:

Movable and Immovable prosper e.g. NSC/ units of UTI/ LIC Policy/ RBI Bonds, property or any Transferable Government securities.

All Banks have different procedure and terms & conditions for repayment and educational loans. Maximum Repayment period of loan & generally the loan have to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time extension of time of completion of course may be permitted for a maximum period of 2 years.

Disbursement of loan/ loan disbursement letter:

The loans will be disbursed in stages as per the requirement/ Demand directly to the institutions/ vendors of books/ equipments/ instruments.

All documents as per bank rule should be given. e.g. fees invoice, equipment invoice, etc.

Some of the basic are:

Eligibility

To obtain a bank loan from India a student should be an Indian national & should have the admission letter from a recognized college, University institution abroad for a professional / Technical course and should be aged between 16 to 35 years.

Documentation Required for Education loan:

Each bank has its own set of requirements but in General bank require following documents

From Student

  • 2 photographs.
  • Copy of passport.
  • Copy of IELTS.
  • Copy of all academics certificates.
  • Offer letter/ proof of admission.
  • Fee schedule.
  • Letter of scholarships, if any.

From Father

  • 2 photographs.
  • Income Tax Returns for last 3 years.
  • Copy of pan card.
  • Copy of residential proof.
  • Bank statement of all accounts (for last 6 months) with balance only.
  • GPF balance  (if government employee)
  • Proof of residence.

From Mother

  • 2 photographs.
  • Income Tax Returns for last 3 years.
  • Copy of pan card.
  • Copy of residential proof.
  • Bank statement of all accounts (for last 6 months) with balance only.
  • GPF balance (if government employee).
  • Proof of residence.

From Third party

  • 2 photographs.
  • Income Tax Returns for last 3 years.
  • Copy of pan card.
  • Copy of residential proof.
  • Bank statement of all accounts (for last 6 months) with balance only.
  • Proof of residence.

Follow up

Bank can contact college university authorities to send the program report at regular intervals in respect of students who have availed loans.

Contact our Visa Valley Advisors for full guidance & assistance regarding any query or mail your query, we will reply you ASAP.