Studying in India is far more affordable than in western countries. And, there are quite a few renowned universities in India that enable students to acquire a highly valuable degree in their subjects of interest. Some of these universities have an affordable fee structure that students do not need to apply for an education loan to study abroad. However, for students hailing from lower-income families, the course fees might seem like a financial burden given the current prevailing disparity of currency exchange rates between the Indian rupee and their home currency. For such students, availing the benefits of an education loan to study abroad in India is a lucrative option.
Secured loan vs unsecured education loan
For students seeking to apply for an education loan to study abroad in India, a secured education loan would seem like a good option in which the student is asked for collateral such as a fixed deposit of an asset like property. Such a secured education loan to study abroad is provided by nationalized and private banks of many countries. These loans have lower processing charges as well as interest rate. On the other hand, applying for an unsecured education loan to study abroad in India might have benefits like no need for collateral. But, these are often limiting in their amount. However, such an unsecured loan has higher processing charges and interest rate.
Basic eligibility criteria for an education loan to study abroad in India
Most countries have similar eligibility criteria when it comes to availing an education loan to study abroad in India or any other country for that matter. The basic eligibility criteria include the following:
- A student must be a citizen of its home country.
- The student, if s/he is working, then must submit details like the income statement and other specifications related to the employment, to the concerned bank.
- The student must also submit certain details and income statements of his/her parents or guardians who can support him/her in case of a financial need during the suggested period of studying abroad.
- The student must have qualified the higher secondary level examinations in the home country.
Process for securing an education loan to study abroad in India
Different nationalized and privatized banks along with non-banking financial institutions have their distinct processes that include filling up the initial application forms and submitting all the required documents for verification, as well as going in for a face-to-face interview. To know more about the exact process for securing an education loan, you can approach either the ministry/department of education or banking institutions in your home country. Moreover, educational institutions in India like Sharda University often guide foreign students about the exact processes to apply for an educational loan to study abroad in India.
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