Documents Required for Abroad Education Loans
Synopsis: Know more about the documents required for applying for an education loan to study abroad. From basic documents like a valid passport, ID proof to academic documents like standardised test scores, and details of any scholarships to your co-applicant’s bank statements, income tax returns to additional documents for a secured education loan, here’s a detailed list of documents required. If you’re about to start your study abroad journey, we know the amount of excitement you have for the most transformative experience of your life. From the thrill of exploring new cultures to gaining a global perspective, international education provides endless opportunities. But we know the mere thought of financing your dream education abroad might pull you back. Introducing: education loans! The financial gap is no more a thing to tackle with the amazing options of financing provided by Indian and international lenders. While navigating your loan application, one daunting task that you wish you could skip is completing the documentation. Does the never-ending list of documents feel like a hurdle in your study abroad dream? Yes, we feel you! Don’t frown, rockstar! At Lorien Finance, we’re here to help you every step of the way. We’ve prepared a comprehensive guide to assist you with all the paperwork required in the process of securing an education loan for your studies abroad. From the necessary academic transcripts to the nitty-gritty financial proofs, to your cosigner’s details, we’ll bifurcate it all so you can complete your loan application confidently. Documents Required for Applying a Study Abroad Loan To secure an education loan for studying abroad seamlessly, you would require various documents to be submitted to the lenders. These documents can be categorised into various categories like academic documents, KYC documents and financial documents. Understanding the document requirements of the lenders is a crucial step for a student in their study abroad journey. Documents required from the applicant Documents required from the co-applicant Salaried Co-Applicant Self-employed Co-Applicant Additional Documents Required for a Secured Education Loan for Abroad Documents Required after Sanctioning the Study Abroad Loan To formalise the loan agreement and facilitate the disbursal of your loan, the lender provides you with some documents after your loan is sanctioned. These documents include: Documents Required for Disbursement of Study Abroad Loans After your study abroad loan has been disbursed, you will be required to share certain documents with your lender to ensure compliance with the loan agreement. These documents include: FAQs Can I apply for an education loan without a cosigner? Most lenders in India require a cosigner/co-applicant for abroad education loans, especially for higher amounts or unsecured loans. The co-applicant provides additional assurance of repayment. Can I secure an education loan if my co-applicant has a low credit score? A low credit score may affect loan approval and interest rates. It’s advisable to improve the credit score before applying or consider adding an additional co-applicant with a better credit score. At Lorien Finance, we’re here to help fund your abroad education in every way possible. Are there any tax benefits on education loan repayments? Section 80E of the Income Tax Act allows you to deduct the interest paid on education loans from taxable income, reducing your tax liability. How does the moratorium period work for education loans? The moratorium period is a grace period during which you’re not required to repay your loan, typically lasting until the completion of your course plus an additional 6-12 months. Interest may accrue during this period. Can I prepay my education loan without penalties? Many lenders allow prepayment of education loans without penalties, but it’s essential to check the specific terms and conditions of your loan agreement. Lorien Finance ensures you know all these factors while securing your abroad education loan.