Studying overseas is a decision that will see your benefits in the future. One cannot deny that studying overseas is expensive and some students find it difficult to fund this endeavour. Scholarships and bursaries are available to ease the burden of finances but can be extremely competitive and in some cases rare.
Loans come as a respite to students who find it difficult to arrange for funds to aid their study abroad. Through this article we will guide you through the process of a loan application, documents required, eligibility and more.
Loan Eligibility
Checking if you are eligible to apply for an education loan should be the first step in the process. Loans are extended to meritorious students to meet their expense of higher education.
We have listed common points on the basis of which Indian loan providers assess a candidate’s eligibility for a loan.
- The applicant must be an Indian citizen
- The student should have an admission confirmation from legitimate educational institutions abroad
- Candidates of age 18 years to 35 years are eligible
- The course in pursue should be at levels of graduate, post-graduate or A PG Diploma.
- Loans for full-time courses require a co-applicant. The applicant could either be a parent or guardian. Married candidates may co-apply with their spouse or in-laws
Loan Documents
To help shorten the process of application, documentation is kept to a minimum, ensuring students are granted loans without going through lengthy application processes.
This aspect of the application process can be conducted online and students do not have to make multiple bank visits for the same.
The application process differs in criteria across banks or loan disbursing bodies.
List of mandatory documents a student is required to provide the banks with in order to progress with their student loan
- Accurately filled and attested application form
- 2 passport size photographs
- Copy of academic mark sheets – 10th/12th or the most recent education certificate
- A statement declaring the cost of study
- Aadhaar Card and Pan Card the co-applicant.
Identity Proof and proof of age
- Copy of either-
- Aadhaar Card
- Voter ID
- Passport
- Driving License
Proof of residence
As a proof of residence, you need to submit either –
- Rental agreement
- Copy of Ration card
- Electricity Bill
- Telephone Bill
- 6 months bank statement the student or co-borrower/guarantor
Proof of income
- Form 16 or Salary slips of the parent/ guardian/ co-applicant
- Either a bank statement or an updated passbook copy of the applicant
- 3 years ITR or IT assessment order of the parent/guardian or co-applicant
- Documents reflecting assets of the applicant or co-applicants
Must Read: International Education Counselling.
How can you improve your eligibility for a loan?
To ensure monetary assistance reaches deserving candidates, banks stringently assess candidates. If you plan on making your dream of overseas education further, here are some points to consider improving your eligibility of being granted an education loan –
- Impressive academic record
- Securing good scores in qualifying exams – TOFEL, IELTS, GMAT, GRE (whichever applicable)
- Receiving offers from acclaimed universities
- The strong monetary capacity of parents or guardians
- Promising future employment and income prospects