Step-by-step guide to getting educational loans

Study Abroad Team 18/07/2023

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Steps to Getting Education Loans for Study Abroad

With yearly expenses mounting, getting funding to send a child abroad for further studies can be difficult for most families. While studying abroad to pursue higher studies can be a worthwhile path to take in life, getting the funds for it can be stressful. Self-funding for a student in the form of getting an educational loan is a good choice. This way, the funding is taken care of, and the family members do not have to take on the financial strain of sending a child to a foreign land. This can be relieving on so many levels.

Here are the steps for getting an education loan for studying abroad:

Research

The first thing to do is to get the research underway. This means finding out who the quality education loan providers in the market are and whether they fund students who wish to study abroad. Knowing what each education loan offers and the interest rates helps narrow the choices. Today, doing this online is easy, with all loan providers set up shop online.

Admission Letter 

Getting chosen by a foreign university is by itself a considerable achievement. If a foreign university has approved a student to study their favored course, the admission letter will be required to get the education loan approval process underfoot. 

Find and Fill Application Form

The next step is to download and fill out the application form for an education loan for studying abroad. This can be found right on the loan provider’s website and easily downloaded. Next, it is time to fill it up. It is imperative, to be honest in filing the application form and not provide false information. To provide

Attach Documents 

Gathering all documents and attaching them with the application form is also an important step. These documents help the loan provider understand that the student is eligible for the loan. 

Interview Round

The student who wants to study abroad and wants an education loan to finance it will be called for an interview round at the loan provider’s office. The student who wants the loan has to face a set of questions he has to answer personally. The loan provider during this time wants to understand whether the student is a worthwhile loan candidate.

Co-Applicant

Many times, loan providers will ask for a co-applicant. This is because the student probably has no income, and it can be considered a risk. But with a co-applicant, the loan provider will feel much safer giving the student the loan. This way, if the student cannot repay the loan at the specified time, the co-applicant will have to. 

Loan Approval

After passing the many hoops of the education loan process, the provider will finally decide to approve the loan. After this, it may take a few days for the loan to be disbursed to the student’s bank account.

Step-by-step guide to getting educational loans

Documents Required for Getting Education Loan to Study Abroad

When a student dreams of studying abroad, they may often require an education loan to fulfill those dreams. But the loan approval process can be time-consuming and complex. Preparing documents for submission to the loan provider will relieve stress.

Here are the documents that will be required to get a Study Abroad education loan:

  • Crucial Documents: This will be the application form duly filled in and signed by the student as well as the co-applicant, as well as their passport-sized photographs, admission letter or an offer letter from the concerned foreign university, government identity cards and certificate for the last qualification received.
  • Academic Documents: The bank will also need an educational certificate and mark sheets for the 10th, 12th, graduation, or PG course that the student has completed. Proof of admission to the foreign university and the fee structure of the course or program one wants to pursue. The printout form of the particular university ranking must also be provided.
  • Identity: This can be a student or government identity card, as well as the loan eligibility for Study Abroad Education Loan for the student and the co-applicant.
  • Residential Proof: The loan provider must have the permanent address of the student and that of the co-application for the education loan. For this, one can submit a passport, Voter UD card, utility bill, or any other document with their permanent address.
  • Financial proof of the Co-Applicant: The co-applicant must have strong financial proof to show the loan provider for an education loan to study abroad. This can be bank statements for the last few months, ITR files for the last 3 years, and other income proof. The idea is to show the loan provider that the co-applicant can repay the education loan in case the main applicant cannot.
  • Other Documents: There may well be many other documents that have to be submitted to the loan provider to be approved for an education loan depending on the particular lending institution.

Best High-Quality Education Load Providers in India for Studying Abroad

Some of the best education loan providers in India for studying abroad are:

  • State Bank of India
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Central Bank of India
  • Indian Overseas Bank
  • Union Bank of India

Choosing to go through only a registered and well-known bank for education loans is important. Going to a private lender can be unsafe in the short and long term.

Factors Loan Providers Look Into When Giving Education Loans to Study Abroad 

With grants and scholarships few and far between, education loans are the need of the hour for most students who dream of getting an education abroad. Education loans are risky by nature from the point of view of the loan providers, and hence they usually look at several factors before granting a candidate:

  1. Student Profile: The first factor must be the student’s personal profile. How the student is and what kind of schooling they had is an important consideration. This helps the loan provider determine whether they are a good candidate for such a loan.
  2. Loan Profile of Student: Whether the student is suitable for a loan is necessary to understand. This often depends on the financial status of the parents. For some, financial proof can mean providing bank account statements; there may be a need to show collateral. The loan provider will want to have a good idea about whether the student can repay the loan.
  3. Employability: Most loan providers will organize a personal interview for Student Education Loan to test whether the candidate is indeed employable. 
  4. Placement Record of University: The loan provider will also check to see the track record of the particular foreign university and how many students they have placed in previous years. What kind of pay packages these students got will also be analyzed.

Getting an education loan to go study abroad can be the start of a great professional career. It can open up new doors of opportunity for any candidate.

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I want to study mba in usa?. What is the procedure?
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Manivannan Posted on 09/04/2024
  • Neha Answered on 09/04/2024

    To study MBA in the USA, you need to follow these steps: 1. Research and select the universities you want to apply to based on your preferences and eligibility. 2. Take the required exams such as GMAT or GRE, and TOEFL or IELTS if you are an international student. 3. Prepare a strong application package including transcripts, essays, letters of recommendation, and resume. 4. Apply to the universities of your choice following their application deadlines and instructions. 5. Upon acceptance, apply for a student visa and make necessary travel arrangements. Please note that the specific requirements and procedures may vary by university, so it is important to carefully review the information provided by each institution.

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