Indian students can secure education loans and overcome hurdles to study abroad by applying for public and private loans. Nationalised banks in India, private banks, and non-banking financial companies (NBFCs) offer viable study abroad loans to finance the aspirations of students.
In recent years, there has been a significant surge in education loans in India. According to Credit Rating Information Services of India Limited (CRISIL), there will be a 40% increase in NBFC education loans. This surge will amount to nearly INR 35,000 crores in 2023-24. Furthermore, CRISIL states that 90% of this amount will be used for education abroad.
The rise in study abroad education loans in India can be attributed to the increasing options for reskilling, vocational education, and upskilling courses abroad. The rising popularity of executive programmes abroad also drives student loans among Indian students.
Loan Choices to Overcome Barriers to Study Abroad
Moreover, Indian students can opt for the following loans to finance their abroad education dreams:
- Government Education Loans: Indian government support students going abroad for higher education at favourable interest rates. The government offers loans via nationalised banks. These banks provide flexible repayment options and often extend loan repayment tenures.
- Private Education Loans: Private banks in India offer study loans for abroad to cover tuition fees and living expenses. These loans often require a co-signer or collateral security.
- NBFC Education Loans: Non-banking financial companies also cater to Indian students studying abroad. They offer flexible repayment options and relaxed eligibility criteria.
- Scholarships and Grants: In addition to loans, students can apply for scholarships and grants for financial aid.
Tips to Overcome Financial Barriers to Study Abroad
Finally, here are some tips to beat financial hurdles in abroad studies:
- Research and comparison of public and private loan givers.
- Also, compare different types of loans on the basis of interest rates, processing fees, terms of repayments, and student reviews.
- In addition, compile all necessary documents. Some essential documents include acceptance letters, academic transcripts, bank statements, visa documents, passports, and income proof.
- Finally, it is important for international students to understand the terms and conditions of loans.
- After availing of loans, students must make timely payments to build a strong credit history.
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