This article focuses on the frequently asked questions about the overseas education loan, its benefits, eligibility criteria and types of education loans as well. These questions and the respective answers will guide you through the important aspect of Education Loan for abroad studies.
So, go ahead and expand your knowledge.
1. Who should opt for an education loan and why?
Usually, middle-income group people apply for education loans. However, because of:
- Rapidly rising costs of education
- Benefit of Income Tax under the 80 E of IT act
- Students willing to carry their own financial responsibilities to safeguard their parent’s savings
- Build Positive Credit History
- Affluent families are going for education loan as well
2. When is the right time to apply for an education loan - before admission confirmation or after? (for USA and abroad)
Like the famous chicken or egg situation, most students or parents are often faced with a situation; as to what process needs to be tackled first – the admissions or the educational loan? Almost all the banks ask for confirmed admissions before granting the approval letter for the education loan, whilst most universities prefer students with the assured funding.
Also, almost all the colleges do not prefer giving much time between the admissions and the fee payment, which often leaves very little time for loan application and processing and thus forcing you to run around for funds at the last minute. However, education loan specialists now allow you to apply and get loan sanctions even before admission confirmation. This helps in understanding the students and parents loan eligibility in advance.
Advantages of Early Application
- Boosts the odds of getting admission to your dream university since there is fund assurance
- Loan eligibility is known in advance
- The ideal approach to declare 'Assured Funds to Universities'
- Loan Sanction Letter carries a higher value and acceptance as compared to the solvency letter
- Assures no last-minute surprises specially during Visa or fee payment time
3. Do I need to be admitted before I can apply for education loan at a particular university or college?
The answer to this is yes and no both.
In case of Nationalised Bank an offer letter or conditional offer letter is required. If not this then atleast an email confirmation from the University would be required. Only then you can apply for the education loan.
But in case of the NBFCs a good TOEFL or GRE Score can be provided to avail the education loan.
Let us now understand the 2 main kinds of overseas education loan which can be chosen by the study abroad aspirant depending upon the financial capability.
- Collateral Loan (Secured Loan)
- Non-Collateral Loan (Unsecured Loan)
To know more about the overseas education loan requirements, you can walk into any study abroad consultants and seek their assistance in the entire loan process. So, go give it a try and fulfil your dream of study abroad without worry much about the finances.
