Everything You Need to Know About Education Loan for Studying Abroad

According to The Times of India, the number of active education loan accounts in India stands at around 28 lakhs. Additionally, the average amount of loan availed has considerably increased from Rs. 5 Lakh to Rs. 9 Lakh during the financial year 2018-19.

Such substantial increase is directly attributed to the growing demand for higher education. A significant number of students opt to enrol in foreign universities to complete their studies every year.

Consequently, the demand for education loans for abroad studies has also witnessed a remarkable surge in demand. It is mainly because of the huge expenses incurred while studying abroad; many opt to pay for the necessary expenses with the help of an affordable credit.

Alternatively, you can also avail a loan against property to fulfil your financial needs towards higher studies overseas.

Eligibility criteria for education loan

Irrespective of whichever course you plan to pursue abroad, you can always avail an education loan for that purpose. These credits provide adequate financial backing as well as allow you to manage your finances better while studying abroad.

The education loan eligibility criteria are listed as hereunder:

●     The applicant should be a minimum of 18 years of age and must be an Indian citizen.

●     He/she should have secured his seat in a recognized university or college abroad.

●     The student should possess a decent academic background and opt for a technical or professional course for higher studies in a foreign university.

Holding a good academic record is likely to land you with a better career prospect after you complete the course. It lowers the risk associated with lending as you are more likely to repay the debt of an education loan for abroad studies.

Benefits of availing education loan

There are several benefits of applying for a loan against property for education.

●     No end-use restrictions

Unlike education loan, where the loan amount is strictly used for funding your curriculum fee at the college/university, the loan against property education loan for abroad studies has no restrictions on its usage. You can easily fund your living and other related expenses abroad along with your education.

●     Flexible tenor

The ease in repayment of such loans is another added benefit. You can choose to repay it through an extended tenor of 20 years. A longer tenor helps you to repay the amount in a convenient manner without burdening your regular expenses. In addition, you can also choose part pre-payment or even one-time payment of the loan if you desire.

●     Hassle-free disbursal

The loan against property is a secured loan and hence requires minimum documentation and eligibility criteria to avail it. Most financial institutions disburse the loan in just 4 working days after approval. As a result, you get easier and faster access to the education loan for abroad studies, which in turn helps to cover up the initial admission charges as well.

Bajaj Finserv is a financial institution that offers loan against property at affordable rates of interest and at minimum eligibility criteria. It also offers pre-approved offers for the loan to make the process of application easier and faster.

These pre-approved offers are also available on various other financial products such as home loans, personal loans, business loans, etc. you can take a look at your pre-approved offer by providing a few details including your name and contact number.

Education loans are essential for those who would otherwise choose to back out from pursuing their dream education.  Considering this fact, many lenders are offering education loans for study abroad studies to help students overcome their financial hurdle.

Simultaneously, a loan against property can be an apt way to fund your education where you can avail a larger amount easily. Make sure that you apply for the same beforehand considering your current financial status so as to avoid falling into a debt trap later.