Student Loans to Study in Italy: Check Rates, Apply

Many overseas students move to Italy to continue their education. The country is well-known for having a long history of higher education. The majority of study programmes are taught in Italian, however, the number of English language programmes is increasing with each passing year. One of the most difficult issues that international students face when studying in Italy is arranging funding. The cost of studying in Italy might be prohibitively expensive, and not everyone can afford it. So, in this blog, we will provide you with all the information on student loans in Italy.

Must Read: Benefits Of Education Loans: Features And Advantages Of Why You Should Take An Education Loan!

Types of Student Loans in Italy

The various types of student loans that are available to students studying in Italy include the following:

• Secured Education Loan: An education loan with collateral, often known as a secured loan for education, is one that requests security from the borrower. Both movable assets, like fixed deposits and LIC insurance, and immovable assets, such as non-agricultural land and residential or commercial property, can serve as this security. It is important to note that almost all public banks in India need collateral before approving an education loan for international studies.  

• Unsecured education loan – An unsecured student loan is one for which the borrower is not required to pledge collateral as security. The interest rates on these loans are often higher than those on secured student loans since the lack of security raises the risk for the lending company. These loans also need a co-applicant or co-signer. The co-applicant’s income and CIBIL score are used to determine the loan amount.

Must Read: Secured vs Unsecured Education Loans

Cost to Study in Italy

• Before approaching several lenders for education loans to study in Italy, let us first assess the average cost of studying in Italy. It is critical to understand this since it will assist you in obtaining the appropriate loan amount from your selected lender. The table below shows the average cost –

Expense	Average cost
Tuition fees	13,000 EUR per year (INR 11.53 Lakh)
Student visa	116 EUR (INR 10,292)
Accommodation	750 EUR per month (INR 66,549)
Transportation cost	7 EUR per day (INR 621)
Food	25 EUR per day (INR 2218)
Utilities	247 EUR per month (21,916 Lakh)

How to Get Student Loans in Italy?

International students planning to study in Italy with the assistance of an education loan should begin their application procedure at least 7 to 8 months before the commencement of their programme. You can also begin your loan application procedure in conjunction with your university acceptance application. 

Here are some simple steps you must take to obtain an education loan in Italy:

• Investigate the banks that offer overseas education loans, as well as their qualifying criteria and documentation needs.
• Determine how much financing you will need and how much you will finance yourself.
• Obtain an admission letter from the admissions office of the relevant Italian university.
• Compare the various loan alternatives offered by various banks for studying in Italy and select the one that best meets your needs.
• Fill out the loan application form once you’ve made your selection about the bank and the loan amount.
• Submit documents such as your address proof, birth certificate, passport copy, identification evidence, and so on.
• When the bank approves your loan, it will produce loan paperwork that includes numerous loan terms.
• After you sign your loan agreement, the bank will pay you the agreed-upon amount in instalments or in one lump sum.

Must Read: What Are The Reasons For Education Loan Rejection? Read To Know Them All!

Factors to Consider Before Applying for a Loan

Before applying for a student loan to study in Italy, you should know how much money you will need and how much you will pay out of pocket. Other critical factors include:

• Determine the institution where you want to study and the course you want to take.
• Add up all of the costs associated with studying abroad in Italy.
• Make a list of all the documents that will be necessary during the loan application process.
• Prepare the guarantor.
• As soon as you obtain your offer letter, apply for student loans in Italy.
• Calculate the disbursement time.

Eligibility Criteria

Check to see if you meet the qualifying requirements for the loan before applying. Different money lending institutions have different eligibility requirements. The following are the common eligibility requirements used by most banks:

• Any Indian resident can apply for an education loan.
• The student should ideally have completed his 10+2 (12th Standard). 
• The student should have secured admission/invitation to an authorised university/college in a degree/diploma course 
• Documents demonstrating regular income are required for the co-applicant (parents/siblings/guarantor)

Documents Required

• Documents for KYC
• 10th, 12th, and graduate exam mark sheets
• Admission letter 
• Fee Structure
• KYC and income verification for co-applicants
• If the collateral is required, further documents may be asked.
  • Accepted Security and collateral
  • Residential/commercial property/non-agricultural plots
  • Fixed-income investments.

Eligible Countries

Students from all around the world travel to Italy to study at the top universities in Italy. Here is a list of universities that are eligible for student loans in Italy:

• University of Padua
• University of Bologna
• Sapienza University Rome
• University of Milan
• University of Naples Federico II
• University of Turin
• University of Pisa
• University of Florence
• University of Trento
• University of Milano-Bicocca

Must Read: Education Loan Sanctioned? Here Are The Issues You Can Expect After The Sanction!

Lenders Who Provide Student Loans in Italy

• There are numerous lenders who can provide you with a secured or unsecured college loan to study in Italy. Public banks, private banks, NBFCs, and international lenders are among the various lenders who can give you education loans in Italy. A comparative analysis of different lenders has been performed so that you may obtain a better understanding of all of the lenders and the loan services they offer. 

Lender	Loan Amount in INR	Interest Rate
Secured education loan
SBI	Up to 1.5 Cr	10.65% – 11.50%
UBI	Up to 1.5 Cr	9.55% – 10.80%
Unsecured education loan
Axis Bank	Up to 40 Lakhs	11.00% – 11.50%
ICICI Bank	Up to 50 Lakhs	10.85% – 12.50%
IDFC First Bank	Up to 35 Lakhs	11.75% – 13.25%
HDFC Credila	Up to 25 Lakhs	12.00% – 12.75%
Incred	Up to 20 Lakhs	12.50% – 13.50%
Avanse	Up to 20 Lakhs	12.50% – 13.50%
Auxilo	Up to 20 Lakhs	12.50% – 13.50%
Prodigy Finance	Up to 100,000 USD(INR 82.44 Lakh)	12.00% – 14.00%

Must Read: Know All About The RBI Guidelines For Education Loan 2023

Expenses Covered in an Education Loan

Depending on the institution or university, tuition fees, as well as up to 100% of other costs like

• Living and lodging costs, 
• Expenses for travel, examinations, 
• Fees for the library and the lab, and 
• Expenses to buy books, supplies, uniforms, instruments, computers, or laptops. 
• The lender might also provide you with travel expenses, but only for one round-trip ticket in the economy between India and the student’s country of origin.

FAQs

This was all about student loans in Italy. If you wish to apply for education loans for studying abroad, connect with FLY.FINANCE and let us help you through the process and make it easier for you. For more information, subscribe to our page.