Education is important for a fulfilling life. However, owing to the sky-high tuition fees and related expenses, education seems beyond reach for even the most brilliant and capable students.
Although it is every student’s dream, only a handful manage to study overseas. And financial constraints act as the main deterrent. Availing education loan is the most promising way to show sufficient funds in a legible and trustworthy manner. This source of funds is easiest to be verified by the embassy assessing your file to grant the visa.
Education loans have helped many to fulfil their dreams by providing the necessary financial support. Here we magnify some challenges surrounding overseas education loans under the microscope and suggest probable solutions:
Ease of Availing Educational Loans
Sufficient funds and the source of funds are one of the first things that will be assessed in a visa application. Students who are applying for visas for the first time or who got rejected due to insufficient funds can solve this problem by availing loan.
Get the exact picture of expenditures which includes tuition fees, living costs, travel, and miscellaneous expenses. Now, find out how much you want to borrow and how much can be given to you.
Due to the high competition among banks, many have modified their policies in granting loans and made them more suitable for students. If you register your file with the study visa consultants in Gurugram, you can get a loan of up to Rs 65 lakhs from IDFC Bank.
IDFC Bank is catering exclusively to our applicants from Punjab and Haryana. ICICI Bank offers loans of up to 1 crore catering to clients from across India. ICICI extends its loan facilities to clients with GIC and block accounts in Germany.
Salaried applicants should have 30K to 40K monthly salaries, whereas for agriculturists it should be between 45k and 50k monthly, and the latest 6 months bank statement.
Talking about different banks, options include private banks, public sector banks, and non-banking financial sectors (NBFC), each option with its pros and cons. Public banks are stricter and will ask for lots of documents, but are an attraction due to low-interest rates.
Private Banks are comparatively liberal in granting education loans. All those who are facing a shortage of funds can apply for collateral-free education loans from private banks.
Documentation, Academic Credentials for Approval
Consider this how and why someone unknown to you can lend you thousands of rupees. It will be possible only when the lender gets the assurance that you are capable enough to return.
It is the same with us, isn’t it, when we lend money to someone? We want to make sure the person can return the money.
This assurance is given through your academic performance and the documents you provide. It shows that you have the commitment and potential to complete the programme and are responsible enough.
Here is a list of documents that you need to have before approaching a bank:
- Photograph (passport size)
- PAN Card
- Aadhaar Card
- Address Proof (Present & Permanent)
- Offer Letter or I20
- Academic documents (Class 10 onwards)
- GRE/ TOEFL/ IELTS/ PTE
- Work Experience (If any)
- Contact Number and Email Address
There are additional documents required depending on whether an applicant is salaried, self-employed, or has an agriculture background. Pay slips, FORM 16, proof of income, admission letters, evidence of extracurricular activities, and statements of purpose are just some of the papers that can be added to facilitate easy loan approval.
Loan Type and Repayment Method
Just like several students are searching for loans, banks are also looking for customers to lend money. This is the reason for the different combinations of loan types, interest rates, and repayment methods, which are available. It is done to attract customers with different profiles.
If you have property or some asset to provide as security, then the loan can be offered at a lower interest rate, termed a secured loan.
Applicants who are asking for a loan just on a promise that they will pay it, without any form of financial security, pose a greater risk for the lenders, which raises the interest rate, known as unsecured loans. In case you are looking to apply through the latter option, then you can contact the study visa consultants in Gurugram.
Interest rates and repayment methods also come with many ifs and buts, all directed to suit the end consumer. Pick an EMI schedule that does not burden your career start.
Education loan connects the most deserving and brilliant students with the best studying opportunities. Using the right techniques, students should pick a loan that fulfils their needs in the best way.