With opportunities growing across the world, more and more Indian students are willing to study abroad at various universities. Studying abroad brings in promises of high-flying careers, with the sky being the limit.
Institutions across the world offer different type of courses and students have various options to choose. Many universities offer scholarship programs and financial aid in some cases to students, which only improve their job opportunities.
The best form of financing is to avail an education loan for foreign studies. Banks in India offer various schemes depending on the institution selected and the course of study. Most education loan schemes come with flexible repayment options and allow the borrower to plan his finances accordingly.
Education loans carry a moratorium or holiday period which is very beneficial as the borrower is given a period of around six months after the completion of the course. The education loan repayment can be started after this period or as soon as the borrower has found a job.
Expenses Covered
- Fee payable to College/Institution/University/Hostel/Mess charges
- Examination/Library/Laboratory fee
- Purchase of books/equipments/instruments/uniforms
- Personal Computers/Laptops wherever required
- Caution deposit, Building fund / Refundable deposit supported by institution bills/receipts, subject to condition that the amount does not exceed 10% of the total tuition fees for the entire course.
- Purchase of computers, if essential for completion of the course.
- Insurance premium for student borrower
- Any other expenses required to complete the course-like study tours,project works,thesis,etc.
- Travel expenses/passage money (to and fro)
- Cost of external coaching/tution is NOT to be considered.
Note: The details of expenses for the entire course period to be obtained from college/institution.
Features of Education Loan:
Any individual aged between 18 and 35 years can avail an education loan to pursue studies at any approved university abroad.
Students can procure education loans for management courses, engineering courses, medicine, and graduate and post graduate degrees, arts, architecture, pure science, hotel management, etc.
The expenses covered under an education loan include tuition fees, exam fees, lab and library fees, caution deposit, travel, books and equipment, projects and study tours.
Borrowers have to bring in a margin of 5% to 15% for loans taken for foreign studies.
During the moratorium period, borrowers have to pay the interest, with the principal payment starting when the loan tenure begins.
Education loans can be repaid in monthly instalments through ECS or via post-dated cheques to the bank.
Generally, banks sanction education loans with tenure upto seven years, inclusive of the moratorium period.
A co-applicant has to be selected for education loans taken for full time courses. Co-applicants can include siblings, spouse, parents or other family members.
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