Education Loan Eligibility Criteria for Studying Abroad
With a rapid rise in demand for studying abroad, an estimated 2 million Indian students are expected to pursue higher education overseas by 2025. As education costs continue to climb, attending prestigious international institutions often involves significant expenses. Understanding education loan eligibility criteria for studying abroad is essential to make these aspirations financially feasible. Realising the same thing, parents start preparing financially for their children’s education from the time they are kids. From investments to Fixed Deposits to whatnot, they try to save the maximum to provide their kids with the best possible education. But, there are still times when all of these can’t fulfil your dream of studying abroad. In such times, education loans for studying abroad act as your Genie from the Magical Lamp to help you study abroad without any financial hassle. Education loans for studying abroad are typically categorized into secured and unsecured options. At Lorien Finance, we partner with over 15 domestic and international financial institutions, including public and private banks and NBFCs, to provide students with the best interest rates for overseas education. To qualify for an education loan for studying abroad, it’s essential to meet the eligibility criteria set by these financial institutions, ensuring you’re fully prepared to secure funding for your international studies. Let’s go through some of the basic eligibility criteria stated by these institutions for students planning to study abroad with an education loan! Note: Eligibility criteria differ as per each lender’s requirements. The parameters mentioned are some of the common criteria required by almost all lenders. Eligibility Criteria for Applying for an Education Loan for Abroad Studies When applying for a study abroad loan, the following basic eligibility guidelines stated by the lenders need to be met: Eligibility Criteria for Secured Education Loan for Studying Abroad Secured loans for studying abroad are taken against collateral, which in most cases is in the formof property. To be eligible for applying for a collateral loan for abroad education, you must beaware of the following facts: Eligibility Criteria for Unsecured Education Loan for Studying Abroad Unsecured loans for overseas education do not require pledging any collateral in exchange. Banksconsider the student’s and the cosigner’s Income Tax Return (ITR), their CIBIL score as well as the student’s past academic records to offer the loan. To be eligible for applying for a non- collateral loan for studying abroad, you must be aware of the following facts: Documents Required for a Study Abroad Education Loan Now that we are well-versed with the eligibility criteria, it is essential to know all about the documents required for applying an education loan for overseas studies. Let’s have a look: For the Student: For the Cosigner: Salaried Cosigner: Self-employed Cosigner: Extra Documents Required for a Secured Study Abroad Loan To secure a collateral loan for your studies abroad, some additional documents related to the property you pledge are required. These documents include: How to Improve Your Education Loan Eligibility for Studying Abroad? While providing education loans for your overseas education, banks scrutinise every detail anddocument shared. There’s always a way of improving your eligibility in securing an education loan for your abroad studies. To score higher on the lenders’ charts, these are the steps you can follow: Documents Required for First Disbursement of Study Abroad Loan Documents Required for Subsequent Disbursement of Study Abroad Loan Now that we’ve topped the exam on education loans, it’s important to remember factors such asacademic qualifications, availability of collateral, credibility, and creditworthiness. By understanding all these criteria, you can seamlessly start your loan application process for your abroad education and give wings to your dream of gaining an education globally. If any step of this process seems challenging, at Lorien Finance, we are always ready to support you throughout your journey. Whether it’s applying for an unsecured or secured education loan, our loan experts navigate the entire process and help you find the best interest rates in the market to help you finance your study abroad dream. We walk with you every step of the way so that your journey is smooth and hassle-free. FAQs Do I need confirmed admission before applying for a loan? Yes, most lenders require a confirmed or conditional admission offer from your university to process the education loan. Is there a minimum academic score required? Yes, lenders typically expect a minimum percentage or GPA, though it varies by lender. I don’t think my course would be eligible for an education loan. How do I proceed? Lenders usually have a list of courses and universities they cover in abroad education loans. Connect with our team to help you find the best lender for your desired course. Can I get an education loan if I have an existing loan? Having an existing loan does not hinder your chances of securing an education loan for your abroad studies, but it may affect the amount you borrow. Lenders consider your total debt-to-income ratio to ensure you can manage additional loan repayments. Connect with our loan counsellors to know how much you can avail for your abroad education.