Opting for an education loan is a prudent way to finance your education independently, enabling you to earn a self-made badge. An abroad study loan can further empower your academic journey by bridging the gap between you and your academic aspirations. So, let’s dive in to understand student loan planning for international students.
Key highlights:
- Benefits of Student Loan Planning for International Students
- Education Loan Plan: Key Elements
Benefits of Student Loan Planning for International Students
Proactive planning of your education loan is essential because it allows you to find the perfect financial solution and plan your estimated EMIs, ensuring you repay your education loan responsibly. Ultimately, student loan planning will lead to a financial roadmap, where you can make well-informed decisions. If you are a first-time borrower of a study abroad loan, you must familiarise yourself with the education loan nuances.
Education Loan Plan: Key Elements
Developing a structured student loan plan is a vital step for any student aiming for an international degree, as it enables a seamless education loan journey. Below is an elaboration on the key elements required for a robust plan.
Choose Between a Secured and an Unsecured Student Loan
You need to decide between a secured loan, which requires collateral such as residential property (apartment/house) or fixed deposits, and an unsecured loan, which is collateral-free. Depending on your financial requirements and preferences, you can select between the two.
Understand The Total Cost
A common mistake is planning only for tuition. However, a successful student loan plan for abroad studies must account for the comprehensive costs, including tuition fees, accommodation costs, travelling costs, living costs, cost of learning devices and other education-related costs. You can try the College Course Expense Calculator to understand your potential college expenses.
Research to Find a Perfect Education Loan Provider
Most students make a common mistake of prioritising just low education loan interest rates. Instead, you must evaluate the Turnaround Time (TAT), costs covered, benefits and features extended by the lender too.
Therefore, keeping in mind your financial requirements, you must conduct research to find a financier that meets your financial needs and provides great benefits and features.
Understand Eligibility Criteria and Documentation
Some Basic Eligibility Criteria
- Students can apply if they:
- Are Indian citizens who are 18 or older
- Have a confirmed admission before the final disbursal
- Have a co-borrower who earns in India
- Co-borrowers also need to meet the following criteria:
- Must be an Indian citizen and should be a parent, legal guardian, sibling or other blood relative
- Must have a bank account in India that allows them to sign cheques
- Must be the primary debtor
Some Important Documents
- For students:
- 2 colour passport-sized photos
- Photo ID
- Residence proof
- Date of birth proof
- Signature verification
- Academic documents
- Proof of admission
- Fee structure
- For co-applicant:
- 2 colour passport-sized photos
- Photo ID
- Residence proof
- Date of birth proof
- Signature verification
- Income proof
- Collateral documents (only for a secured student loan)
- 8-month bank statement
- Relationship proof
Apply Early
Applying for a loan should ideally happen 4–5 months before your intake or as soon as you get your confirmation of admission from your university. Early application ensures you have the required funds for flying abroad as per your course commencement date. Starting early also gives you the leverage of not being stressed when you should ideally be planning to fly to your chosen destination and focusing on your studies.
At Avanse Financial Services, you can apply online in just 4 steps – fill out the online application form or visit the nearest branch office, speak to our education loan consultant, share the documents, and if you tick all the boxes, your student loan will be approved.
Create Emergency Fund
Even with 100% financing, you must establish an emergency fund. This fund acts as a safety net, enabling you to continue with your EMIs even during contingencies such as a pandemic or unexpected medical expenses. Therefore, you must spend judiciously and set aside an amount towards your emergency corpus. Also, many study abroad students opt for part-time jobs, which allow them to fund their lifestyle abroad and save some for unexpected expenses too.
Creating a comprehensive education loan plan is not merely about securing funds but about building a strategic foundation for your academic life and professional career. Ultimately, a well-executed plan ensures that you remain “Atmanirbhar”, allowing you to focus entirely on your education while safeguarding your long-term financial health.
At Avanse Financial Services, we offer student loans with 100% finances, quick loan sanctions and flexible repayment options. Our student loans cover the holistic cost of education, including tuition fees, accommodation costs, travelling expenses, living costs, cost of learning devices and other education loan-related expenses.
You can try our education loan EMI calculator to find the best suitable estimated EMIs. If you have any questions, please feel free to contact us. We would be glad to partner with you on your academic journey.
Also Read: Education Loan for Nursing Students: What You Should Know
