Many young Indians hope to complete their higher education at foreign universities. They wish to widen their horizons and boost their job offers with an international degree. One common hurdle they face while attempting to achieve this dream is a lack of finances. Apart from paying for their tuition, students must also have enough money for other expenses such as accommodation, living expenses, study materials, and other educational costs. An education loan for abroad studies can help in these situations. Students may apply for a loan to help pay for college and living costs. Let’s look at how education loans can help students achieve their academic goals.
The Two Types of Education Loans
What Conditions Should I Fulfil for an Education Loan for Abroad Studies
Most lenders will decide whether to provide an unsecured education loan based on the following criteria:
Applicant’s Academic Profile
Students who have consistently performed well over the years are far more likely to get approved for unsecured loans. The academic profile helps lenders assess whether a student can find employment in the future and repay the loan as per the agreed terms.
Co-Applicant’s Credit Score
When applying for an education loan, you must provide the details of a co-applicant. The individual should be a parent, relative or guardian with a healthy financial background. The lender will check their credit score before approving your application. If your co-applicant has a good credit rating, you will likely get your education loan.
As a student-centric organisation, Avanse Financial Services takes a different approach to educational lending. We prioritise your employability potential over the co-applicant’s financial background. We’ll look at your academic and entrance exam scores and the pedigree of the educational institution you hope to join to determine your employability potential.
Lenders view some degrees as more reliable than others. You will likely get your education loan approved if the lender approves of the degree. Pursuing courses that align with your existing skills will work in your favour.
When it comes to education, the world is your oyster. You can choose to study in an Ivy League college in America, an Oxbridge college in the United Kingdom, or a business school in the Philippines. However, your chosen destination will have some bearing on whether you will get an education loan for abroad studies without collateral or not. Many lenders will likely approve applications from students heading to well-known learning centres in popular study abroad destinations such as America, England, Australia or Ireland.
Most lenders have partnerships with various colleges and universities across the globe, so it is easier to provide education loans for these educational institutions. Therefore, it’s always a good idea to check if any lender has an existing relationship with your preferred university. It could fast-track your education loan without collateral application.
Is an Education Loan for Abroad Studies Right for Me?
Finances should never stop you from achieving your goals. An unsecured education loan allows you to maintain financial independence while helping you gain a foreign education. Before applying, you should check the eligibility criteria and ensure you meet them to avoid unnecessary delays. If you’d like to apply for an education loan or learn more, visit the Avanse Financial Services website.
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.