How To Avail An Abroad Study Loan

How To Avail An Abroad Study Loan
Acquiring a foreign qualification was a distant dream for many, even with decent financial backing, with
virtually no loans being available, as the amount required was too much of a burden for most of them.
Things have changed for the good, with banks both in public sector and private sector, offering
educational loans for Abroad Study Loan, which has resulted in increasing number of students from
middle class and lower middle class families materializing their overseas study aspirations, banking on
these loans. However, there are many doubts in the minds of students and parents, especially with
regard to its loan processing, documents required repayment etc. Let us look at the process one by one.
Figure out the total amount you would require
Before applying for an Abroad Study Loan, it is always better to take in to account how much money you
would require for the entire study abroad stint. One has to consider tuition fees, boarding and lodging
expenses, books, insurance, travel cost etc before deciding on the loan amount required, so that even
after getting an education loan passed, you are not cash strapped.
Approach banks
Now that you have clarity on the amount required, the next step would be to approach banks, most
preferably those near to your place of residence, as it would make things smoother as far as the
processing is concerned. Though one can consider public sector as well as private sector banks, Public
sector banks should be your first priority, considering the lower interest rates, repayment options etc
are concerned, whereas new generation banks are known for quick processing of such loans.
Check your eligibility
The most important thing to know is whether you are you eligible for an education loan. Enquire
whether one’s parental income would suffice to meet the eligibility criteria, whether you have sufficient
collateral security like house, flat, non-agricultural land or fixed deposit, to support the loan? These are
vital in determining your eligibility for an education loan.
Have full clarity about the loan
Taking education loan is a big commitment, one which needs proper knowledge about different aspects
of the loan one is taking. One should not only compare the rate of interest. Any decision to select a
loan should be taken in to account consider many factors. Know the terms of your loan? What the
interest rate will be? When the repayment period will begin? One should also consider other factors like
flexibility to pay from abroad, online customer services etc. The golden rule is, do not leave anything to
speculation.
Arrange documents according to the check list

Getting a check list and preparing necessary documents as per the check list can save your precious time
and to expedite the processing. The documents generally required are as follows, but may vary from
bank to bank
Identity and proof of residence if you are not an existing bank customer
Proof of admission to the course
Schedule of expenses for the course
Copies of letter confirming scholarship, etc
Copies of foreign exchange permit, if applicable.
Passport size photographs
Bank account statement for the last six months
Income tax assessment order not more than 2 years old
Brief statement of assets and liabilities of borrower
Get a confirmation on the loan processing period
It normally takes 10 to 30 days for education loan processing, though it can stretch beyond that
depending on particular cases. It is always better to apply for Abroad Study Loan well in advance,
anticipating any such possible delays so that you do not have a problem in securing admission owing to
paucity of funds. Following up with the bank manager once in a week would help you gauge the
movement of your file and take necessary measures accordingly.
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