Education loans are like any other loan. You borrow money and then you pay it back with interest. But instead of paying the money back to a bank, you pay it back to your school.
Education loans are a way to pay for school. They are given out by banks and other financial institutions. You can use higher education loans to pay for college, university, or other types of school.
Education loans have some of the lowest interest rates among all types of borrowing. The repayment period can be up to 25 years. This makes education loans more attractive than other types of loans.
A personal loan for education gives borrowers more time to pay them off. Some lenders may even provide special forbearance periods. In this period, payments are not necessary, and the interest rate is stable.
Types of Education Loans in India
- Loans for Career Development
A lot of people who have worked at a job for a few years take a career break. They go to school to learn new skills. This helps them to get a better job. Such people would strive to get admission to prestigious technical and commercial schools. They perfect their skills and enhance their careers.
- Undergraduate Loans
This loan helps students pay for college. A college degree lasts 3 to 4 years. A college degree makes it easier to get a good job and start earning money.
- Loans for Postgraduate Studies
Many students decide to get a post-graduate degree. A post-graduate degree is an advanced degree. To get a post-graduate degree, you need to study for two years. A post-graduate degree will help you understand the field you are studying much better.
- International Education Loan
These loans let students attend a foreign university to pursue their desired degree. If they meet the conditions, students who wish to study abroad may apply for a loan. The loan will cover their airfare, accommodation, and tuition.
- Domestic Education Loan
Students may apply for this loan if they plan to study in India. Approval from an Indian educational institution is necessary before loan approval.
- Assurance from a Third Party
The student may be able to get an education loan with the aid of a guarantee letter from a bank employee or a home bank.
- Loan against Assets, Deposits, and Securities
You may add assets like equity shares, fixed deposits, real estate, flats, houses, and more. You can even put up gold deposits.
Education Loan Eligibility
To be eligible for an education loan, you must meet the following requirements:
You must be an Indian citizen.
- You must have been admitted to a reputable university in India or overseas.
- Your age must fall between 18 and 35.
- You must be undergoing a graduate, post-graduate, or post-graduate diploma.
- Your enrollment in a school connected with the University Grants Commission (UGC). Or, The All India Council for Technical Education (AICTE), the government, etc.
- Full-time students must have a co-applicant.
- The co-applicant needs to have a steady source of income.
- A solid academic background speeds up the process.
What Will Increase Your Eligibility for a Student Loan?
Banks are careful while assessing loan eligibility. It guarantees that financial help reaches deserving students. Some of the assessing points are:
- Good marks in the qualifying examinations
- Having a strong academic record
- Admission to a prestigious institution
- Co-borrower with a strong financial background
- Possessing promising future income generation potential
How Can You Apply For Abroad Studies?
Applying for studies abroad in India can be a daunting process for many students. However, with the right guidance, the entire process can become easier.
The first step in applying for studies abroad in India is to find a suitable institution. Research different universities and programs. Find the best fit for your academic and career goals.
It would help if you considered factors such as:
- School’s reputation
- Courses offered
- Cost of tuition
- Availability of scholarships
You can find this information online through university websites or an education consultant.
Apply for Admissions
Once you have found the right university you must apply for admission. The admission process starts by filling out an application form. This form is on the university’s website.
After that, you must submit documents. Some of them are academic transcripts, letters of recommendation, and a purpose statement.
Also, depending on the university, you may need to take an English proficiency test.
If your application is accepted, you will receive an acceptance form and a letter of the offer. Please review them before accepting. It may have restrictions that you need to be aware of.
After receiving the offer letter, the next step is to apply for your student visa.
You must assemble the necessary paperwork. Each nation has its unique requirements that you must fulfil. You should keep the following documents ready.
- Passport (with six-month validity)
- Student visa application form
- Passport pictures
- Proof of admission
- Evidence of financial means
- Civil documents
- International student health insurance
- Previous university records
Make your flight reservations as soon as possible. Always be on the lookout for cheaper fight tickets. You should also confirm with the airline about the maximum luggage allowed.
The campus may or may not provide accommodation. You may need to find a place to live while studying abroad. Looking for a room on rent or a local host would be best. The price will vary from city to city.
Let’s say you decide to rent an apartment. You may need to pay for tenant’s insurance and extra utility costs like power, internet, and water. (in some housing areas).
Applying for studies abroad from India involves several steps, besides evaluating higher education loans. It includes thorough research, analysis, document submissions, and studying for the admission tests.
If in doubt, consider consulting an institution like Piramal Finance. Their experts can help you calculate how much you need to borrow and how much EMIs you need to pay when taking a personal loan for education. You can check out more helpful articles like this on their site for free.