There is a extensive demand for education loan for studying abroad. It increased exponentially in the past two decades. No of students opting for overseas education drastically increase in the present era. Demand for foreign education loan also increases in the same manner. Today there are various major lenders offering education loan or we can say that international student loan. A student can apply from the following major banks like National Bank, State Bank of India, South Indian Bank, Andhra Bank, ICICI Bank, Bank of India, ING Vysya Bank, Syndicate Bank, Corporation Bank, and AVANSE, etc.
For the purpose of education loan for abroad studies student must opt for Master in Management courses, Technology courses, Medical and Engineering Courses. Bank does not provide loans for students with Bachelors in Arts and Masters in Arts. Basically, courses where employment opportunity is less, banks will not provide loans for that particular course.
Documents Required for Education Loan:
Documents required for the purpose of education loan for studying abroad with student loan application are as follows-
- Mark sheets of last qualifying examination.
- Proof of admission scholarship.
- Schedule of expenses for the specified course.
- Bank A/C statement for the last six months.
- Income tax statement for the previous 3 years his/her and co-borrowers also.
- Brief statement of assets and liabilities of the co-borrower.
- Copy of foreign exchange permit.
- Passport size photographs.
- Proof of Identity and Residence.
Banks will provide some schemes for student loan forgiveness. If there is any scheme related to the same will be applicable at the time of loan.
Expenses Covered in Education Loan:
Education loan for studying abroad will consider following expenses.
- Tuition fees
- Charges are taken for examination
- Charges for library
- Charges for laboratory
- Hostel charges or Stay Charges.
- Cost of purchasing books.
- Cost of equipments used in the study.
- Instrument cost.
- College uniform cost.
- Travel expenses for study abroad.
- Caution money if applicable.
- Refundable deposits.
- Cost of study tours.
- Exchange programme cost.
- Project work cost.
- Industrial tour cost.
Types of Education Loan:
Student can select one of the following types of loan for the purpose of study abroad.
Pre-Visa Disbursement Loan-
If you already have a confirmed admission or your I-20(USA), this loan will help you secure your visa. The actual loan amount is disbursed into your bank account, so you can demonstrate as a 'proof of funds' to study abroad at the time of your visa interview.
This education loan for studying abroad covers all education expenses related to Exam Prep Classes, for SAT/GRE/GMAT entrance exam fees, cost of applications for admission to universities abroad, actual course fees, living abroad expenses, and costs of books, computer and other educated-related expenses.
This loan is beneficial for meritorious students. Score-Based Loans provide special benefits for deserving students. For instance, for students pursuing a science course stream in the USA and who have scored so well in GRE 300 and above marks, offers special privileges in terms of an unsecured loan and Preferential Interest Rates.
This is an education loan sanction that helps in securing confirmation of Admission to the Institute/University abroad. This loan is a 'proof of funds' to cover your course fees and living expenses abroad.
As the name suggests, this is an express loan. This helps you speed up your admission process for any higher studies abroad course, at the time of application, if that is your requirement. But Fast-Track Loan will be costlier than any other loan.
Certificate of Availability of Funds-
This is not a type of loan but this certificate will be provided by the bank as a confirmation. This certificate demonstrates that you have adequate funds to pursue a course abroad and pay for the course fees and living expenses. It will require showing adequate funds in books of accounts instead of taking the loan.