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Education Loan for Abroad Studies: Step By Step Process for Foreign Study Loan

  • Highlights

  • Conventional Student Loans Have Long-winded Procedures

  • Leverage Your Property To Get A High Value Loan For Education

  • Avail Loan Against Property For Education On Low Interest

  • Bajaj Finserv Disburses Money In 4 Days On Approval

According to a recent report, as of 2018, the annual tuition fees for a bachelor’s degree in engineering in Australia were between Rs.12 and Rs.17 lakh. Similarly, annual tuition fees in Canada were between Rs.8 and Rs.20 lakh. Moreover, the cost of overseas education is increasing by 15% every year. Added to this is the living expense, which varies across countries but is sure to set you back by another Rs.50,000 to Rs.1,00,000 annually. With such extravagant expenses to tackle, age-old practice of setting aside funds may not be enough to cover the cost of overseas education and living expenses.  

As a parent, investing your money in various options is a good way to plan for it, but it also helps to look at other avenues to secure funding. Therefore, it may be time to consider borrowing through options such as an education loan. But, what is an education loan?

Student Loan In India For Higher Studies

Conventionally, an education or student loan in India is a financial offering that you can avail from a financial institution to fund tuition costs. As a parent or guardian of the student, you can borrow this loan on their behalf or they can borrow it themselves. However, you or your child must adhere to strict eligibility criteria in order to qualify for the loan. Generally, the main education loan requirements are excellent academic scores, and a high value course from a reputed institution. Following which, you must provide proof of admission in order to start with any loan processing procedures.  

When it comes to borrowing via an education loan, information is of prime importance. This is because it can be easy to overlook or miss out on important details. For example, when learning how to apply for an education loan, you may miss out on the fact that you get a grace period of up to 1 year, post which you start repaying instalments.  

As you may notice, this loan, while beneficial, can be time-consuming and difficult to obtain due to its stringent requirements. Thankfully, other financial options are also available in the market. You can not only qualify for such loans basis simpler eligibility terms, but also avail a quick sanction of a hefty amount. To know more about these solutions, read on.  

Best Way To Avail An Education Loan For Abroad Studies In India

An alternate option can be a personal loan. Being an unsecured sanction, it is easy to apply for and obtain a personal loan for education-related expenses. Moreover, when used for the purpose of education, you can claim tax exemptions basis your repayments under Section 80E of the Income Tax Act, just like a conventional education loan. However, the loan amount may not always be enough to fund the course fee and other expenses completely.

This is where the Loan Against Property comes in to your rescue. In order to access this loan, you can pledge your high-value asset or property with a lender and apply for a loan. Even though the final loan amount will depend on the value of your property, you can get up to 80% of your security’s worth as a loan. Since it is a secured borrowing option, applying for the loan is easy and with security at stake you can repay the loan basis a longer tenor ranging up to 20 years. Additionally, depending on the lender you choose, you can benefit from relaxed eligibility criteria, making it easier to secure the funding you need. What’s more, you benefit from lower interest rates with this secured loan as opposed to a collateral-free option.

Some offerings even have additional value-added features to maximise your borrowing experience. For example, when you opt for the Loan Against Property as an education loan for abroad studies, you benefit from the Flexi facilities that come with it. This helps you borrow from your sanction as and when you require funds. Here interest is charged only on the amount you actually withdraw and not the entire sanction. The applications of this feature are plenty, especially if your child is studying overseas, as you may not be able to predict all expenses. You can also choose to repay the loan basis interest-only EMIs and pay the principal only at the end of the tenor. This further lowers the EMIs by up to 45% and allows you to tackle other expenses with ease and manage your cash flow better.

Now that you know of an efficient way to secure funding for education-related expenses, the next step is research. In order to identify the right option, you must scout the market for the most suitable education loan interest rate in India. Conducting your own research is of prime importance; however, with a commitment of this magnitude, it is best to ensure you have all your bases covered. So, here is a detailed breakdown of how you can go about it.

How To Choose An Education Loan With A Low Interest Rate In India

In order to settle on the best education loan interest rate, you must first start out by shortlisting a few top-tier lenders. Then use education loan calculator to accurately compute your total interest payable for a suitable tenor. This dictates the total cost of the loan and so, the lower the better. However, simply finding a low interest rate offering isn’t enough to keep your costs low. This is because certain lenders may have higher fees and hidden charges. Therefore, the Bajaj Finserv Loan Against Property for Education is a smart choice to consider because it offers a competitive interest rate and has no hidden charges.

Unlike conventional education loan interest rate, which may vary between 8.45% and 15.2% per annum the Loan Against Property interest rates are competitive, owing to its secured nature. Also, on lower rates you can get a hefty sanction of up to Rs.3.5 crore, which you can repay via a tenor of 20 years. Additionally, you can get approval within 24 hours and have the entire sanction disbursed to your account within 4 days. Further, availing a floating interest rate loan allows you to enjoy zero part-prepayment and foreclosure charges.  

Now that you know about this affordable financial option, the next step in your borrowing journey is to learn how to get low interest on an education loan. In the instance of the Bajaj Finserv offering, the application process is straightforward and easy to follow. Here is how you can go about it.

Loan of up to Rs 3 crore against property in just 4 days

How To Apply For A Bajaj Finserv Loan Against Property For education

The most important thing to you must follow when decoding how to apply for an education loan are the lender’s eligibility criteria. In this case, you can qualify for the loan basis simple criteria. Here is what it entails.

As a salaried applicant:

  • You should be an Indian resident

  • You should be between 33 and 58 years of age

  • You should be employed in an MNC, a private or public company

As a self-employed applicant:

  • You should be a resident Indian

  • You should be between 25 and 70 years of age

  • You should be residing in one of the approved cities

  • You should have a regular source of income

Once you meet these eligibility terms and conditions, furnish the following documents when applying for this student loan in India.

For salaried individuals:

  • Recent salary slips

  • Last 3 months’ bank account statements

  • PAN card and Aadhaar card

  • Residential proof

  • Copy of your property’s documents

  • Income tax return

For self-employed individuals:

  • Last 6 months’ bank account statements

  • PAN card and Aadhaar card

  • Residential proof

  • Copy of your property’s documents

How To Apply For An Education Loan For Abroad Studies

Just like the simple eligibility process, applying for this loan is also easy. With Bajaj Finserv, you can enjoy a simple Loan Against Property application process. All you have to do is follow these easy steps.

  • Visit the official Bajaj Finserv website

  • Fill up the online application form and submit it

  • Wait for a Bajaj Finserv representative to contact you within 24 hours

  • If approved, submit all the necessary documents to complete the application

You will get an approval on your application within 48 hours, post which money will be disbursed straight to your account.

Apart from all the benefits and features, opting for a Bajaj Finserv Loan Against Property allows you to use funds from your sanction as per your discretion. Unlike an education loan, where the course fee is directly transferred to the institute, a Loan Against Property for education-related expenses is disbursed to your account. This means apart from the course fee, you can use the funds to meet other auxiliary expenses for your child, be it living and transport costs, travelling expenses, course books and electronics and more.

Additional Read: Tax Benefits on Education Loan on Property

This greatly helps your child adapt to the new environment and reduces any incoming stress caused by financial insecurity. To get started on your loan application online, check your pre-approved offer by simply entering personal details such as your name and phone number. Expedite your fund needs and access a substantial sanction hassle-free, on convenient terms.

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The material contained in this site and on associated web pages is general information and it is not intended to be advice on any particular matter. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. The decision with respect to any financial product or opportunity or nature or suitability or choice or the viability of any product or service shall always be sole responsibility and decision of the subscriber and user.

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