Do you need an educational loan for study overseas?
Posted on October 24, 2019
Study abroad is a significant investment that can impact both the student as well as the family involved.
There is a lot that parents do to see their children get the best in education, ensuring a lucrative career down the line.
When you think of studying abroad, there are various expenses that you will have to be prepared for. Coming under the broad category of foreign educational expenses, these include –
- Tuition fees
- Other supplies
- Health insurance
- Boarding fees
- Transportation fees
- Other living expenses
Even if you do secure a scholarship, there is great chance that you will still be requiring additional funds for covering all of your expenses while you study overseas.
Educational loans can come to your aid in situations like these.
What all does an education loan cover?
Generally, an education loan will cover the following –
- Tuition fees
- Cost for books etc.
- Travel expenses to your educational institution
- Caution money
- Refundable deposit
- Project work
- Exchange programs or study tours
- Examination fees
- Charges for using the laboratory, library etc.
What are the requirements for getting an educational loan?
The student applying for an educational loan must be –
- An Indian living in India
- Between 16 to 35 years of age
- Able to provide collateral, if needed. By collateral is meant any asset kept as an assurance for the repayment of the loan taken.
- Able to provide a co-applicant, needed for all full-time programs of study overseas. A co-applicant can be – spouse, sibling, parents, mother-in-law, brother-in-law, father-in-law, or either a maternal uncle/aunt or paternal uncle/aunt.
Things to keep in mind
- Under the Comprehensive Educational Loan Scheme, if eligible, you can get a loan of up to INR 15 lakhs for study abroad.
- Usually, banks prefer giving loans to students pursuing professional or technical courses. The reason being the greater potential for post-academic employability in such students.
- Collaterals, though needed at times, are not mandatorily required by all Banks. Also, even if the same Bank provides different educational loans, while a collateral might be needed for a loan of a specific amount and not for the other.
- The Government of India has barred all non-banking institutions financial institutions and registered banks for keeping any kind of collateral for educational loans that are below INR 7.5 lakhs.
- There is no limit on the maximum educational loan that you can take.
- Most of the band offer maximum loans up to INR 20 to 30 lakhs.
- If the loan amount exceeds INR 20 lakhs, the interest rate will be on the higher side.
Y-Axis offers a wide range of visa and immigration services as well as products to the aspiring overseas immigrants including Concierge Services that include Student Education Loan and Banking Services.
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