Gone are the days when candidates from wealthy families and high-class societies used to go to internal educational institutions for higher studies. Nowadays, students from average-earning families go abroad for further studies with the help of foreign education loans. An education loan takes care of the tuition fees and other expenses concerning abroad studies, which came as a savior for candidates who want to study in international educational institutions but can not do so because of financial crunch. Before applying for an education loan, you can check cibil score free. Suppose you are an Indian candidate who wants to go abroad for higher studies and is considering taking an education loan. In that case, you can scroll down, read, and learn what you must know about foreign education loans for studying abroad.
Privileges of an Education Loan
Education loans have become an outstanding choice for financing higher studies, especially for students who find it challenging to fund higher studies. The privileges of an education loan are as follows:
- Keep Savings Safe
Indian parents spend much of their hard-earned income on their kids’ education. Even if you or your parents can fund education abroad, opting for an education loan is a good choice and keeps your personal savings safe for emergencies. Emergencies are uninvited guests, and no one predicts when such a situation will arise.
- Tax Privileges
After repaying your education, you can get tax privileges if you file income tax returns. Education loans are eligible for tax deductions under the Income Tax Act of 1961.
- Repayment After the Programme Ends
Repaying your education loan after the course program ends can relieve numerous students who focus only on completing their education during the course tenure without stressing about repayments and finances.
- Personalized Loans
The eligibility to select from numerous personalized loan products is another privilege of an education loan. Education loans cover all expenses concerning studies and lenders of multiple loan schemes according to varying requirements. Depending on your needs, you can get personalized education loans.
- Aid in Boosting Credit Score
If you repay your education loan on time, it will aid you in boosting your credit score. You can check cibil score free. Improving your credit score is a way that will help you in future borrowings.
Eligibility Criteria for Education Loans
The eligibility criteria mentioned below are general ones. Different lenders have various eligibility criteria. The eligibility criteria for education loans are as follows:
- You must be an Indian citizen.
- If you are below 18 years, your parents will take the education loan.
- Your academic record must be strong.
- A reputed international institution must accept your admission.
- Your selected course should be technical or professional because banks prefer professional and job-oriented courses.
Education Loan Options in India
Two types of education loans are available in India. You can opt for any one of them. The salient characteristics of education loans are as follows:
- Secured Education Loans
Secured education loans are a loan where you can attach collateral while applying. If your documents are current, getting approval for such documents is relatively straightforward. The bank will evaluate your documents and examine the collateral. It has a low-interest rate and long repayment term. To apply for such loans, you do not need parental income.
- Unsecured Education Loans
If you do not have collateral to offer while applying for secured education loans, you do not have to get upset because you can still apply for education loans. In the case of unsecured education loans, you do not need collateral. You can fulfill your dream of studying abroad by applying for unsecured education loans. The interest rate is high, and the procedure is complicated. Unsecured education loans are a good option if you are an earning student because you must repay some amount during your study period.
Documents Required for Education Loans
The documents required for education loans are as follows:
- Identification proof
- Proof of Residence Proof
- Marksheets of higher, higher secondary, and your last qualifying exam
- Admission letter from your targeted college
- Preceding six months’ bank account statement
- Fee structure and expenses concerning your study during your course duration
- If you got a scholarship, you could attach a letter informing the lender about the same.
Conclusion
An education loan for studying abroad is a trustworthy source of funding for education in recent times. With an increase in multiple foreign impositions, including sanctions on student VISA and control on the diversified intake of students, it is the most effortless method to control candidates to cross borders and attain a good education. A hike in academic fees worldwide reflects the yearly intake of diverse candidates. Despite sanctions on student visas, students still apply for international educational institutions taking help from banking establishments through education loans. Before applying for an education loan, you can check cibil score free.
