Why and how should one apply for an overseas education loan in India?

The need for obtaining a quality education from a premium institution has encouraged a number of students to move abroad. The reason being; universities in foreign countries have made a name for themselves in providing a quality form of education. However, the only hurdle in front of the students towards fulfilling their educational dreams is the amount of financial costs involved in it. Thus, there are a number of students who aren’t able to pursue higher studies in the educational field of their choice. However, now these students can easily obtain an overseas education loan and complete their studies. There are a ton of advantages of opting for these loans, and a few of them are here as follows:

  • The interest rates charged by the banks and NBFCs (non-banking financial institutions) are way lower than the ones asked by the traditional institutions and loan sharks. Further, the financial institutions even provide you with a discount of 0.5% on the interest rates for an overseas education loan.
  • An education loan helps the students to self-finance their education; meaning, they can now fulfill their study goals without having to depend on anyone else for financial assistance. After all, many-a-time, parents often exhaust their life savings in order to sponsor their child’s education. However, now you can put a stop to all of it by self-financing your studies.
  • An overseas education loan will cover a number of your study-related expenses. The different costs covered by these loans are your tuition fees, living expenses, college expenses, travel expenses, etc. Further, a study loan will even cover the other expenses that you may incur while pursuing an education in a foreign land. The financial institutions providing education loan cover a number of countries such as the UK, USA, Germany, Ireland, and many more; thus, you can easily choose the country in which you want to study further.
  • Further, the new-age financial institutions have even started providing you with flexible repayment options; meaning, you can now carefully plan out and repay your installments over a period of time. These installments are calculated on the basis of the principal borrowed amount, interest rates charged by the financial institutions, and the repayment tenure opted by you.
  • Most of the financial institutions providing you with an overseas education loan, even offer you with the assistance of guidance counselors for free. These counselors have a lot of experience in educational fields and they will help you with your admission process.

But before you think of applying for a study abroad loan, make sure that you fulfill the eligibility criteria set by the banks and NBFC (non-banking financial companies), and it is here as follows:

  • You need to be an Indian citizen in order to obtain an overseas education loan from a financial institution in India. The financial institutions have even set an age limit of 18 years to 35 years (for most of the banks and NBFCs).
  • You also need to provide the financial institutions with a co-signer; this co-borrower can be your parents, siblings, etc.
  • The financial institutions also check your co-signers credit score, history and income. Other than that, you also need to have a letter of confirmation from the university along with a good educational background.

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