Quality education is necessary to fulfil academic and career goals. With the rising cost of education, many deserving students find it extremely difficult to achieve their academic endeavours. Also, students these days prefer to finance their education independently without depending upon their parents. In such situations, an education loan for studying abroad acts as a saviour for them which assists them with the necessary funds.
To put it simply, an education loan is a prudent choice that assists you in financing your education whether you choose to study in India or abroad. It covers the tuition fees, cost of living, study material costs and other educational expenses. Although many reputed financial institutions offer a student loan in India, students must conduct thorough research to know the multiple aspects before applying for an education loan.
Types of education loans for abroad education
Two types of education loans are available based on collateral. These are:
Secured Loan: A secured loan is the one in which an applicant deposits intangible or tangible security as collateral to the lenders. The pledged security can be in the form of fixed deposits, immovable property, bonds and shares. The lenders verify all documents submitted by the borrower before granting the study loan for abroad education.
Unsecured Loan: These loans are unsecured as the borrower does not pledge any collateral. Availing an unsecured loan is the best option when applicants have nothing to pledge as security to lenders.
Important Note: A co-applicant is a must if you want to apply for an education loan. A co-applicant is a person who repays the education loan in case the main applicant fails to repay it due to any unexpected situations.
Education Loan – Eligibility criteria
An applicant needs to meet the following eligibility criteria to get an education loan in India :
Important documents to submit to avail study loan for abroad
An applicant needs to submit relevant documents while applying for an education loan. Some of the important documents are enlisted below:
Procedure to follow
It is advisable to apply for a study loan in India well in advance as it involves a series of steps right from filling out a loan application, verification, and approval to disbursement. Follow the below-mentioned procedure to apply for a study loan:
Things to check while taking a student loan
At Avanse Financial Services, we strive to make the education loan process seamless for you. To know whether you are eligible to apply for an education loan for studying abroad, contact us today.
We always aim to offer you competitive interest rates on your Avanse Education loan.
The rate of interest on your loan is calculated as: Interest Rate = Avanse Base Rate + Spread.
Our current Base Rate is 14.25% (WEF 01.05.2023).
The Spread is floating and is based on analysis of overall credit and course profiling.
This rate is subject to the terms and conditions of Avanse Financial Services Ltd.