There is no doubt that the trend of studying abroad is booming at a tremendous pace with more students embracing the increasing opportunities than ever before. The number of aspirants for study abroad in developing countries like India is colossal for sure. However, it is also true that attaining higher education in abroad is a costly affair and often beyond decent limits of affordability.
This is where student loans for abroad study come into the picture as a way out. Availing a student loan for abroad study can very well be the bridge between a student’s dream of pursuing education in abroad and that dream turning into a reality. In fact, it is a common practice for students to avail a student loan for abroad study. Once a student finishes his or her degree or diploma abroad, they can easily get rid of student debt from their wages. After all, higher wages and better career prospects are among the top benefits of studying abroad.
Now, the real question is, how to get a loan for abroad studies? What are the prospects for loans to support education in abroad and what is the best way forward? If you have similar queries or are likely to have these queries in the near future, this blog is for you. In this blog, we elaborate on the process of getting a student loan for abroad study.
How can you get a student loan for education in abroad?
- Essential Requirements
Firstly, let us try and understand the fundamental requirements of getting a student loan for studying abroad. The requirements are listed below.
- The borrower must be a citizen of the country from where the loan is being applied.
- The primary borrower is the student while parents/spouse can be the co-borrowers.
- For the disbursement of the loan, the financial condition of the borrower must be stable.
- To apply for the loan, a letter of acceptance from an accredited institution abroad is needed.
- A parent or guardian must be present with the borrower (student).
- Required Documentation
Next, it is important to understand which documents are needed to apply for a student loan for study abroad. The list of documents is mentioned below.
- Academic records of the student
- Letter of admission
- KYC documents
- Income proof and KYC documents of the designated co-applicant
- Bank statement
- Photo ID proofs
Moreover, on a case-to-case basis, the bank authorities may also ask for some additional documents to supplement the application for the loan.
- The Procedure
Going further, we come to the actual procedure of applying for a student loan for study abroad. A concise overview of the overall procedure of applying for a student loan is explained by the pointers mentioned below.
- The first step is to determine whether the course you are applying for is recognized by the banks or not. There is little possibility that banks will sanction a loan for a course or program that they do not recognize.
- Next, compare the rates of interest along with the other terms and conditions of the banks to figure out which bank suits your needs the best.
- Once you have decided upon a bank to proceed with for your loan application, make sure that you run a check for the eligibility criteria set by the bank. You can always reach out to the bank to assist you with the eligibility criteria or you can access the information on the official website of the bank. HDFC Bank, ICICI, State Bank of India and Axis Bank are among the reputed banks offering student loans for education in abroad.
- Now, all that you are left with is to fill out the loan application form of the bank and from there, the bank personnel will take it forward.
- Once the loan is approved, a loan document will be generated. You need to crosscheck the document and sign it. What follows is the loan disbursement.
The Bottom Line
Applying for a student loan needs you to be very informed and proactive in terms of comparing banks and their policies. Moreover, you need to have comprehensive information about the prerequisites and essential documents while applying for a student loan. Having that knowledge will ensure that you can arrange the necessary documents beforehand. The more informed you are, the more actively you approach it and the better the prospects of making the right decision with respect to your student loan.
However, the easier and smarter way of doing it is to consult a reputed overseas education consultant. A good overseas education consultant will not only guide you through the entire process of applying for a student loan for study abroad but will also guide you with the right choice of bank. There is a possibility that the consultant may even have some sort of collaboration with a bank already.
Author Bio: Shivam Garg
As an entrepreneur working in the domain of education with the vision of empowering young learners to be future leaders, I love to share my insights and views quite passionately through my pieces of content which too are aimed at bringing a positive difference. With 10 plus years of experience entrepreneurship, mentoring and writing, there is a lot I have to share with the youngsters around.