If you’re planning to study abroad and need financial assistance, an overseas education loan can cover tuition fees, living expenses, travel, and more. The process is simple: first, determine the loan amount you need, check your eligibility, and gather the required documents. Then, compare loan options from different lenders and apply for the one that best suits your needs. Complete the application form, sign the agreement, and begin repayment after the moratorium period. Let’s dive into the key details and answer the most common question—how to get an education loan for studying abroad.
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Steps to Secure an Education Loan for Studying Abroad
Thinking of taking out an education loan after the 12th or for the first time to study abroad? Don’t worry if you’re not familiar with the process—you’re not alone! Getting a student loan might seem intimidating at first, but once you break it down, it’s pretty straightforward. Here’s a simple roadmap to guide you through the process-
Figure Out How Much You Need
Before you even think about loan applications, start by figuring out the total cost of your studies abroad. You’ll need to account for things like tuition fees, accommodation, travel expenses, and any other costs related to your education. Once you have a clear idea of the amount you need, you’re ready to move to the next step.
Compare Loan Schemes
Now, it’s time to explore your options. Banks and financial institutions offer a variety of loan schemes with different interest rates, repayment terms, and loan amounts. It’s important to compare at least two to three schemes that match your needs. This will help you make an informed decision and pick the best deal.
Check Your Eligibility
Each bank has its eligibility criteria, but generally, you need to be an Indian citizen, have secured admission to a recognized university, and meet age and academic requirements. Double-check these criteria before you apply to avoid surprises later. Here are the basic eligibility criteria-
- You must be an Indian citizen.
- You must be at least 18 to apply for an education loan independently. If you’re under 18, your parents or guardians will need to apply for the loan on your behalf.
- You must have secured admission to a reputable foreign university, institution, or college.
- You must have a solid academic record. This increases your chances of getting the loan approved and may also influence the loan amount offered.
Get Your Documents Ready
Once you know which loan options are right for you, it’s time to gather your paperwork. Be prepared to submit:
- Your academic transcripts and certificates
- Admission letter from a foreign university
- Income proof of your co-applicant (usually a parent or guardian)
- Other KYC documents like ID and address proofs
- Having everything organized will speed up the application process.
Submit Your Application
Now comes the fun part—applying for the loan! Fill out the application form (either online or at the bank) and submit all the required documents. Banks and NBFCs will take a little time to process your application, but once they verify your documents, they’ll approve the loan and send the funds your way.
Loan Disbursement
After the bank verifies everything, the loan amount will be disbursed. Typically, the funds are sent directly to the institution for tuition fees, while living expenses and other costs may be transferred to your account.
And just like that, you’re all set to head abroad and focus on your studies, knowing that your finances are taken care of!
Also Read: Planning to pursue MBBS? Check out the details on education loans for MBBS from Russia.
How to Apply for an Education Loan to Study Abroad?
There are several ways to apply for an education loan. Let’s break it down into three main methods, so you can choose the one that suits you best:
Visit the Bank Branch
If you prefer the traditional route or have specific questions that need personal attention, visiting the bank branch is a great way to go. You can meet with a loan officer who can walk you through the entire loan process.
Whether it’s about the interest rate, collateral, or repayment terms, you can ask all your burning questions in person and get immediate clarifications. If you need to submit documents or want help with filling out the forms, you can do that on the spot, making the process quicker.
Here are the steps to apply for an education loan by visiting the branch-
- Visit the bank branch with your documents in hand.
- Discuss your loan requirements and eligibility with the bank officer.
- Submit your documents and complete the formalities.
Tip: Make sure you’ve already checked the bank’s eligibility criteria online, so you’re prepared!
Online Application via the Lender’s Website
For tech-savvy students, applying online through the bank’s official website is the most convenient option. Banks today offer fully digitized loan application processes, which makes the entire experience fast and hassle-free.
You can start your application from the comfort of your home, without needing to go anywhere. Most banks offer an education loan tracking status feature so you can check the status of your application anytime. You’ll receive updates and alerts through email or SMS regarding your loan status, document verification, or approval.
Here are the steps to apply for an education loan online-
- Visit the bank’s official website (e.g., HDFC, SBI, ICICI).
- Navigate to the education loan section and fill out the application form.
- Upload the required documents (admission letter, marksheets, etc.).
- Submit the form, and wait for a confirmation email.
Make sure your documents are scanned clearly and correctly, as any mismatch can delay the process.
Vidya Lakshmi Portal
If you want to explore a government-backed platform that simplifies the entire education loan application process, then Vidya Lakshmi Portal is the way to go. This is a one-stop shop for education loans in India, and it connects you with multiple lenders, including both banks and financial institutions.
The portal gives you access to several banks and financial institutions offering education loans. You can compare their interest rates, repayment terms, and eligibility criteria—all in one place.
It provides detailed information on the loan process, eligibility, and documentation, so you won’t have to chase down the information yourself.
Once you’ve applied, you can track your loan status directly through the portal. Follow the given steps to apply for an education loan to study abroad via Vidya Lakshmi Portal-
- Visit the Vidya Lakshmi Portal.
- Create an account and fill out your loan application form.
- Browse the loan offers from various banks and choose the best option for you.
- Submit your documents and wait for approval.
The Vidya Lakshmi Portal also provides student counselling services and guidance on scholarships, so it’s a great place to explore all your funding options.
Also Read: Check here all the details about how to remove NPA from education loans. Know the effective steps to repay your education loan properly.
Is it Worth Taking an Education Loan to Study Abroad?
When the dream of studying abroad feels out of reach because of rising costs, an education loan can make it possible. A loan allows you to focus on your studies instead of stressing over finances. Taking a study abroad education is truly worth it. Check out the reasons below-
- You get financial flexibility to cover a wide range of expenses
Imagine being able to cover your entire tuition fees, living expenses, and other costs—without the need to dip into your savings or borrow money from friends and family. That’s what an education loan does! You get the freedom to pay for everything related to your studies, so you don’t have to worry about going broke.
Education loans are designed to cover much more than just your tuition fees. Here’s what you can fund:
- University tuition fees
- Accommodation & living expenses
- Books and study materials
- Travel expenses, airfare, and baggage insurance
- Cost of laptop or other equipment
- Flexible EMIs allow hassle-free repayments
Repayment is never a one-size-fits-all deal. When you take an education loan, banks offer flexible repayment terms to fit your post-study situation. You get a moratorium period (usually up to a year after completing your course) to secure a job and get financially stable. After that, you can start repaying the loan in instalments, which are often tailored to your income level. This makes it easier to repay the loan without feeling burdened.
- You can claim tax benefits on interest paid on education loans
Here’s one you might not know: income tax rebates on education loans come with tax benefits under Section 80E of the Income Tax Act. This means you can claim a tax deduction on the interest you pay on your loan. Over time, this can add up and reduce your taxable income, leading to lower taxes! It’s a small but significant financial advantage that can make a big difference.
- You can build an impressive credit report
Taking out an education loan isn’t just about funding your education—it’s also a smart way to build a strong credit history. By making timely repayments, you show that you’re a responsible borrower. This will be incredibly useful when you apply for other loans in the future, like car loans, home loans, or personal loans. A solid credit score means you’ll get better terms and interest rates from banks.
- You are investing in your future
Unlike other loans that may be used for depreciating assets (like buying a car or electronics), an education loan is an investment in your future. The knowledge, skills, and qualifications you gain from studying abroad will enhance your career prospects and earning potential. The return on this investment is huge—often far more than the amount you borrowed. In other words, an education loan helps you set the foundation for a successful future.
Also Read: Know how exchange rate volatility affects student loans for international students. Check out the ways to deal with and manage finances wisely.
Education Loans to Study Abroad with Fly Finance
Getting an education loan for studying abroad can make your dream of higher education a reality. However, it’s important to carefully assess your financial needs, compare loan options, and understand the terms and conditions before applying. By following the right steps and submitting the necessary documents, you can secure a loan that will support your academic and personal goals abroad.
If you need more personalized assistance, you can also seek guidance from education consultants or bank representatives who can help you navigate the loan process smoothly.
Fly.Finance offers fast, convenient, and accessible loan options to students. We specialize in helping students secure education loans for studying abroad, ensuring a smooth and hassle-free experience. Whether you are pursuing undergraduate, postgraduate, executive, or pathway programs, Fly Finance offers tailored solutions to meet your financial needs. Here’s how Fly Finance can help you:
- You are assigned a dedicated loan expert. They guide you through the entire loan process, from understanding requirements to selecting the right lender and facilitating loan disbursements.
- You can get unsecured loans up to INR 1 crore, making it easier for those without assets to get loans.
- With interest rates starting from 9.25%, Fly Finance ensures that you get the best possible rates based on your profile, saving money in the long term.
- We help you get your education loan processed in as little as 24 hours, with approvals in as fast as 3 days—ensuring quick access to funds.
- We offer free support to students with no service charges, making it an accessible and cost-effective solution for securing education loans.
To learn more about education loans, the best bank accounts for students, forex, 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
To apply for an overseas education loan, you need to determine the loan amount, check your eligibility, and gather the required documents. Then, compare loan options from different lenders and apply for the one that best suits your needs.
Eligibility typically requires being an Indian national, having secured admission to a recognized foreign university, and meeting academic requirements. Some banks may also require a co-applicant or collateral.
With most banks, you can get education loans based on your financial needs. Loan amounts can range up to INR 1 crore and up to INR 3 crore with banks like ICICI for secured loans. The exact amount depends on the course, university, and financial profile.
For loans above INR 7.5 lakhs, banks usually require collateral, such as property or fixed deposits. Loans below INR 7.5 lakhs may not require collateral but require a guarantor.
Common documents include your passport, academic records, university admission letter, income proof of the co-applicant, bank statements, and collateral documents (if applicable).
You can apply for an education loan through bank branches, online portals, or educational loan platforms like Fly Finance. Make sure to compare various loan schemes before applying.
Interest rates typically range from 8.5% to 14%, depending on the bank, the loan amount, and the co-applicant’s financial profile.
Loan approval can take anywhere from 1 to 3 weeks, depending on the bank’s verification process and the completeness of your application.
The loan amount is typically disbursed in instalments, with tuition fees paid directly to the university, while living expenses and other costs may be credited to the student’s bank account.
Yes, education loans are available even for students from low-income families. However, the loan amount and approval will depend on the co-applicant’s financial standing, collateral, and the university.
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