Japan is increasingly becoming a popular study destination for Indian students due to its advanced education system, research opportunities, and cultural richness. However, financing education in Japan can be challenging, given the high tuition fees and cost of living. Aspiring students can finance higher education by applying for education loans to study in Japan. By understanding the loan options, eligibility criteria, and repayment processes, you can plan effectively to fund your education. This guide provides a detailed roadmap for Indian students seeking education loans to study in Japan to make informed decisions.
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Education Loan to Study in Japan
International students can avail of the following education loans for Japan. Study loans can be obtained from government agencies, private organisations, banks (i.e. Government and private) and foundations. Indian banks like SBI, HDFC, and Axis Bank offer loans up to INR 1.5 crores at attractive interest rates. You can easily repay with flexible terms and conditions, including hassle-free EMIs for up to 15 years.
Japanese financial institutions like JASSO Loan Programs and local Japanese Banks also offer low-interest education loans to study in Japan. However, to apply with them, international students must meet the eligibility criteria. You require a local guarantor and may need proof of Japanese proficiency.
Government-Sponsored Loans
MEXT Scholarships: The Japanese Ministry of Education, Culture, Sports, Science and Technology (MEXT) offers international students scholarships for undergraduate, graduate, and research programs. The scholarship period is five years (April 2023 to March 2028), including one year of preparatory education in the Japanese language and other subjects upon arrival in Japan.
JASSO Student Loan: The Japan Student Services Organization (JASSO) provides low-interest loans to international students studying in Japan. These loans have favourable repayment terms and are accessible to students with financial need.
| Scholarship | JASSO Scholarship | MEXT Scholarship |
| Monthly Remittance (JPY) | Up to 90,000 (INR 60,000)(excluding fees) | 117,000 JPY (INR 80,000) (with regional allowances) |
| Duration | Varies | 5 years |
| Coverage | Living expenses | Living expenses, tuition, and more |
| Regional Allowance | Not specified | 2,000 JPY or 3,000 JPY (INR 1158-INR 1737) for designated regions |
Private Education Loans
Bank Loans: Some banks in Japan offer education loans specifically tailored for international students. These loans often require a guarantor, collateral or proof of financial stability.
International Loan Providers: International financial institutions may also offer education loans to students studying in Japan. These loans may have different eligibility criteria and repayment terms.
Check out: Universities in Japan for International Students
How Much Loan is Required to Study in Japan?
To ascertain how much loan is required for an education loan in Japan, it is important to calculate expenses for tuition, living expenses, books, instruments, visa and other study-related costs. Loans may cover tuition or additional expenses, depending on the lender. Understanding the cost of living in Japan helps estimate the loan amount required:
| Expense Category | Cost (Approx.) per Year | Details |
|---|---|---|
| Tuition Fees | INR 4,00,000 to 12,00,000 | Varies by course and institution (higher for private universities). |
| Living Expenses | INR 6,00,000 to 10,00,000 | Includes accommodation, food, and transportation. |
| Miscellaneous Costs | INR 1,00,000 to 2,00,000 | Books, insurance, and other personal expenses. |
- Education loans without collateral or involving interest rates are preferred.
- Corporate entities may offer education loans with conditions such as post-study work commitments.
- Loan applications consider program relevance, academic records, and motivations.
- Craft a compelling application and familiarise yourself with the terms and conditions.
Eligibility Criteria
The eligibility criteria and application process for education loans in Japan may vary depending on the loan provider. However, some common requirements include:
- Acceptance into a recognized educational institution in Japan.
- Valid student visa and residency status.
- Demonstrated financial need or the ability to repay the loan.
- Academic performance and language proficiency may also be considered in some cases.
- Maintain minimum bank balance for Japan student visa.
Must read: Top 4 Japan Scholarships for Indian Students You Never Knew Existed!
Types of Loan Application
Scholarship Loan Application Types and Deadlines:
- Prior Applications (Before Commencing Studies).
- Students can apply for scholarship loans before starting classes.
- Applications are accepted through the schools where students are enrolled the year prior to commencing studies.
- Post-Entry Applications (After Commencing Studies).
- Applications are accepted through the schools where students are currently enrolled.
- Notification for application is typically provided every spring.
- Emergency Applications (Category 1 Loans) and Temporary Applications (Category 2 Loans).
- Scholarship loan applications can be submitted anytime through the schools where students are currently enrolled.
- These applications are meant to address sudden changes in the financial situation of students’ families due to events such as unemployment, personal bankruptcy, company bankruptcy, sickness or death and disasters like fires, earthquakes, storms or flooding.
Documents required
The following are the documents required for an education loan:
- Completed loan application form.
- Proof of admission to a Japanese university or educational institution.
- Passport and student visa documents.
- Academic transcripts and certificates.
- Financial documents such as bank statements, income certificates of sponsorship letters.
Education Loan Application Process
To apply for an education loan to study in Japan, it is important to understand how to proceed. You must start by researching and comparing the education loan interest rates of various banks and NBFCs. Once done, identify which lender provides loans based on your financial needs and requirements. Check out their eligibility criteria and gather the necessary documents.
Step 1: Research and Compare Loan Options
- Compare interest rates, repayment tenures, and processing fees of various banks.
- Check for special schemes for studying in Japan.
Step 2: Gather Required Documents
| Document | Purpose |
|---|---|
| Admission Letter | Proof of acceptance into a Japanese university. |
| Fee Structure | Details of tuition fees for the entire course. |
| Financial Statements | Demonstrates repayment capacity. |
| Academic Records | Verifies eligibility based on prior education. |
Step 3: Submit Application
- Apply online or offline with the required documents.
- Wait for approval, which can take 1–3 weeks depending on the lender.
Step 4: Loan Disbursement
The loan is disbursed directly to the institution or into the borrower’s account for personal expenses.
Also Read: Japan Visa Application Fees for Indians
Tips for Securing an Education Loan:
To increase your chances of securing an education loan for studying in Japan, consider the following tips:
- Start your research and application process early to allow ample time for gathering documents and meeting deadlines.
- Maintain a good academic record and demonstrate your commitment to your chosen field of study.
- Explore scholarships and grants that can help reduce the overall financial burden.
- Create a comprehensive budget plan that covers both tuition fees and living expenses.
- Seek guidance from education loan advisors or financial aid offices to understand the available options and make informed decisions.
Studying in Japan offers immense academic and cultural opportunities for international students. By understanding the various education loan options and diligently preparing your application, you can alleviate the financial burden associated with studying abroad. Remember to research and compare different loan providers, explore scholarships and seek professional advice to make the best choices for financing your educational journey in Japan.
This was all about Education Loans for Japan. And if you wish to read more about finance-related blogs. Follow Fly Finance, your trusted companion in all matters about financial prowess. To learn more about education loans, the best bank accounts for students, forex, and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
FAQs
You can get up to INR 1.5 crore from Indian banks depending on your course and collateral. Some of the popular banks include SBI, ICICI Bank, and HDFC Bank offering attractive interest rates and flexible loan terms.
International students can explore government-sponsored loans (such as MEXT scholarships and JASSO loans) as well as private education loans from banks or international loan providers.
Key documents include admission letters, fee structure, financial proof, and academic records.
Collateral is required for loans exceeding ₹7.5 lakhs in most cases.
Some bank loans in Japan may require a guarantor or collateral, but not all loan options have this requirement. It depends on the specific loan provider.
Yes, seeking guidance from education loan advisors or financial aid offices can help you understand available options and make informed decisions.
Yes, scholarships like MEXT and JASSO provide tuition waivers and stipends.
Yes, but they often require a local guarantor and Japanese language proficiency.
Tips include starting the application process early, maintaining a good academic record, exploring scholarships, creating a comprehensive budget plan and seeking guidance from loan advisors or financial aid offices.
Banks disburse the loan in INR, which is converted to Japanese Yen as per university requirements.
Yes, students can apply for post-study work permits to support loan repayment.
