“Education is the key to unlock the world. It is the passport to freedom.” Oprah Winfrey
‘Main udna chahta hoon, daudna chahta hoon, girna bhi chahta hoon, bus rukna nahi chahta!’
Does this inspire you and make you think of flying to different countries for your education? Well,
what if we tell you, it is all possible! Any part of the world, the course of your choice, the university of
your dreams!
For those of you who aim to pursue higher studies abroad, but face a lack of sufficient funds, there is a magic carpet that’ll fly you to the study destination of your dreams, anywhere across the globe. And yes, this magic carpet isn’t interrupted by the stressful financial mountains in the way!
Congratulations, Aladdin’s Genie granted your wish!
Realising that securing admission to top-tier institutions abroad can be an enriching experience as they offer innovative learning, exquisite facilities, and premier projects that enable you to get numerous opportunities, education gateway consultancies, like Lorien Finance, intend to take off the immediate burden of financing the applicant’s higher education.
USA, Canada, Australia and the UK have been the top choices for education destinations, but the
Netherlands, Germany, UAE, France, Singapore, Italy and Spain are no behind in terms of learning
opportunities.
You must have researched all about the pros of studying abroad, but let’s get practical and understand the process in depth. To begin with, the tuition fee for an overseas student seems comparatively higher than that of a domestic student, but it’s completely worth it! You’ll have to spend extra for accommodation and other living expenses too. Don’t worry! This isn’t to scare you, but introduce the role of education loans in your journey to make it hassle-free! Don’t let your bank account hold you back from crossing oceans. Dive into your study abroad dreams with a loan!
Types of Education Loans for Students Applying for Abroad Studies
Indian students can opt for two types of loans based on feasibility, income and credit history.
- Secured Loan– A secured loan would require you to pledge collateral (assets, liquid securities) as a guarantee against the education loan. You can apply for a secured loan from the comfort of your home. Due to the collateral, the interest rates of this type are low and has flexible repayment terms.
- Unsecured Loan– An unsecured loan eliminates the requirement of collaterals and instead relies on the borrower’s creditworthiness and the student’s employability potential. The interest rates of this type are high as compared to a secured loan and have a shorter repayment tenure.
- No Cosigner Loan– With a no cosigner loan, the borrower is not required to attach any guarantor against the provided loan amount. Such education loans can be borrowed from international lenders. These lenders look at the borrower’s academic success and career path, rather than their credit history.
How to get an education loan for studying abroad without collateral?
Are you dreaming of pursuing your higher education abroad with study abroad loans, but the thought of collateral is making you ditch your plan? Hold on, while we share a list of Indian and international lenders that help you aspire for gaining international education without the hassle of collateral.
| Lenders | Loan Amount | Interest Rate |
| State Bank of India | Upto ₹75 lakhs | Starting from 10.15%* |
| Union Bank of India | Upto ₹40 lakhs | Starting from 9.25%* |
| HDFC Credila | Upto ₹75 lakhs | Starting from 10.50%* |
| Axis Bank | Upto ₹50 lakhs | Starting from 10.50%* |
| ICICI Bank | Upto ₹1 crore | Starting from 10.25%* |
| IDFC Bank | Upto ₹85 lakhs | Starting from 10.50%* |
| TATA Capital | Upto ₹75 lakhs | Starting from 11.50%* |
| Ascent | 100% cost of education | Starting from 3.79%* |
| Auxilo | Upto ₹40 lakhs | Starting from 11.50%* |
| Avanse | Upto ₹75 lakhs | Starting from 11.50%* |
| Earnest | 100% cost of education | Starting from 3.74%* |
| Incred | Upto ₹60 lakhs | Starting from 11.75%* |
| MPower | Upto $100k | Starting from 12.99%* |
| Prodigy | 100% cost of education | Starting from 11.50%* |
| Sallie Mae | 100% cost of education | Starting from 3.59%* |
With non-collateral loans from public banks like State Bank of India, Union Bank of India and many more, at feasible interest rates starting from 9.25%, the Indian government aids students aspiring to study abroad with accessible education loans. Non-collateral education loans for studying abroad from private banks including Axis Bank, ICICI Bank, IDFC Bank and more start at 10.25%, while Indian and International NBFCs like HDFC Credila, Tata Capital, Auxilo, Ascent, Avanse, Earnest, Incredible, MPower, Prodigy Finance and Sallie Mae offer non-collateral loans starting at 3.59%* and make overseas education accessible for all.
While Indian lenders mandate the availability of a cosigner for non-collateral loans, International lenders including MPower and Prodigy Finance offer non-collateral loans without a cosigner. They provide study abroad loans on the basis of your credit history and academic performance.
At Lorien Finance, we have partnered with 15+ financial institutions to help you with the best
education loan for abroad studies. From lowest possible interest rates to non-collateral loans to loans without any cosigner, we have it all!
The process of applying for a non-collateral loan with Lorien Finance is just the easiest. Let’s walk you
through the same:
- Connect with our team stating all your requirements and an education loan counsellor would reach out to you to understand your situation and help you with everything related to non-collateral loans.
- You will be required to share all your necessary documents and other details either with our loan
counsellor or on our dashboard, to proceed with your loan application. - On sharing your application for a non-collateral study abroad loan with your chosen lenders, the loan counsellor will negotiate with the lender to help you secure a better interest rate.
- Upon approval from the lender on your application, you receive a notification with the approved
amount. If satisfied, you can finalise by signing the agreement, leading to the disbursal of the
required funds.
Benefits of a Study Abroad Education Loan
- Reduced financial burden– Taking an education loan for studying abroad covers 100% of the cost of your education, keeping your parents’ savings intact, also eliminating the need for liquidating your parents’ assets for your education.
- Tax benefits under section 80E– Under the Chapter VI-A of Section 80E of the Income Tax Act of India, the interest payments made for an education loan will fall under ‘deductions’. These tax benefits on education loans are a driving force for students to take an education loan.
- Easy repayment strategy-Education loans come with flexible repayment terms, including a moratorium period, allowing you to start repayment after completing your education or finding suitable employment.
- Financial prudence- Taking on an education loan is a great opportunity for students to pay for their own education, without needing to depend on family. Besides, when your child repays a loan, they also start building their credit history. A good credit profile will help them get cheaper loans in the future.
Types of Education Loan Providers
Banks– Banks are financial institutions regulated by the Reserve Bank of India (RBI), which provide all financial services. Banks in India can be categorised as public and private sector banks. Public sector banks like State Bank of India, Punjab National Bank, Bank of Baroda etc. are owned by the government, while private banks like HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, etc.
are owned by private entities. With a more extensive documentation and verification process, public and private banks in India offer to cover 100% of your education cost with their collateral and no collateral loans.
At Lorien Finance, we have partnered with leading public and private banks from India, including State Bank of India, Union Bank of India, Axis Bank, ICICI Bank and IDFC First Bank to help you find the best education loan for your study abroad journey.
NBFCs– NBFCs (non-banking financial company) are financial institutions other than banks that offer various types of loans without holding a banking license. By screening your academic profile before offering the study loans, NBFCs are redefining the norms of lending education loans. With offerings like collateral as well as non-collateral loans, NBFCs offer a higher loan amount if you meet the criteria. NBFCs also have quicker loan processing and disbursal time as compared to banks, as they are not subject to the same level of regulatory check.
At Lorien Finance, we have partnered with leading Indian and International NBFCs including HDFC
Credila, Auxilo, Avanse, Tata Capital, Incred, Prodigy Finance, MPower Financing, Earnest, Sallie Mae
and Ascent to help you secure your study abroad education loan seamlessly.
How to Choose the Right Education Loan for your needs?
When pursuing your higher education abroad, its essential to find the right financial support. Education loans are increasingly gaining popularity as a means to fund your abroad education. But how do you choose which study abroad loan is best for you? Let’s guide you through the right information required for securing the most suitable education loan for you!
- University and course eligibility
Before applying, ensure your chosen university and course are eligible for an education loan with the lender you choose. Most lenders cover a wide range of universities and curses abroad. - Understanding interest rates
The most important parameter to be examined when looking for an education loan, interest rates can be fixed or floating. Fixed rates stay constant during the entire loan term while floating rates differ as per the market scenario. At Lorien Finance, we offer education loans for studying abroad at interest rates starting as low as 3.69%*. - Repayment options
Opting for loans with flexible repayment options is best suited in any scenario. Most lenders offer a grace period after the completion of the course before you start repayment. - Cosigner availability
Applying for a loan with your parents or guardian as cosigners can increase the loan amount eligibility. It also helps in securing a lower interest rate and flexible repayment periods. - Margin money
Some lenders mandate a margin amount, which is a percentage of the total amount you are required to pay. Confirm all the policies before finalising your loan.
Eligibility Criteria for Studying Abroad
The following factors are a mandate to be eligible to apply for an education loan in India:
- The applicant must be an Indian national.
- The applicant or the co-borrower (parent or spouse) must have a bank account in any bank in India.
- The applicant must possess a strong academic record.
- The applicant must have an acceptance letter from a recognised university or college abroad.
Documents Needed for Studying Abroad
Let’s run our eyes over the list of documents required for a study overseas education loan in India.
- Loan Application Form
- Academic documents (transcripts and standardised test scores)
- Identification and related documents (KYC, Aadhaar card, PAN Card, birth certificate)
- Income proofs and bank statements
- Residential proof
How to get an Education Loan for Abroad Studies?
The education loan application process differs for each lender and can be filled out both offline and online. In both scenarios, the applicant is required to submit the application along with the required paperwork, post which the lender contacts the applicant and proceeds with the loan application.
If you feel the loan application process is quite daunting, reach out to us at Lorien Finance, and we’ll take care of the entire process for you, while you focus on other important stuff!
Common Myths about Education Loans Debunked
Education loans are one of the most common means of financing your higher studies abroad. Whilen applying for an education loan, you will hear a lot of misleading facts that can create confusion and anxiety. Let’s solve that dilemma for you and ease the financing step:
- It is better to self-finance your higher education abroad.
Opting to finance your education yourself than taking an education loan might sound better initially, but in reality, it means using your contingency funds, money that you can instead use to secure your future. An education loan lets you invest your savings simultaneously, so that you get the best
education with a strong financial profile. Moreover, you can reap attractive tax benefits that can’t be availed when self-funding your studies. - You need a high credit score to apply for an education loan.
While a good credit score helps you secure an education loan easily, it isn’t a mandate for securing an education loan for your abroad studies. Lenders focus more on your academic performance as well as the university’s reputation rather than the credit score. - Without collateral, an education loan is simply not possible. Almost all financial institutions offers education loans without requiring a collateral. Such loans areoffered on the basis of your academic performance, university’s reputation, and the student’s earning potential to repay the loan in time.
- An education loan would just cover your tuition fees.
Most lenders cover the 100% cost of your education abroad, including your tuition fee,
accommodation, living and travel expenses. It’s important to review the lender’s policies to ensure all your financial needs are met.
Alternatives: Study Abroad without an Education Loan
If you feel education loans are not your cup of tea, there are other alternatives to finance your education abroad, including:
- Self-funding
Utilising your personal savings to finance your abroad education is viable if you have substantial savings or access to funding from your family. It provides the advantage of graduating debt-free and offers greater financial independence after completing your studies. - Scholarships
Scholarships for studying abroad are provided by the Government or foreign institutions based on merit and other criteria. You need to conduct a thorough research, at least an year prior to your plan of studying abroad, to apply for these scholarships that offer financial aid for your study abroad dreams.
Why choose Lorien Finance to help you secure a study abroad loan?
We ask ‘Why not?’ Being the overseas education consultancy of today’s contemporary world, we accept that even though studying abroad has its share of expenses to bear, it’s surely not out of reach with the right planning as well as guidance. Lorien provides you with personal counselling along with assistance in all documentation procedures and the best interest rates from top financial institutions.
Here’s a brief overview of the key reasons you should choose Lorien:
- The privilege of paying post learning program
The goal is for you to focus on your learning and eliminate financial worries. With easy repayment schedules and EMI payment options, you can comfortably repay your loan on course completion or once you secure employment. - Covers all expenses!
We understand being in a foreign land, you’ll have a lot more expenses. Worry not, our loans do not just cover your tuition fee, but back your living and travel expenses along with study material costs. - Makes you financially independent
When you repay the loan yourself upon securing employment, this would enable you to be more capable and independent financially, building your credit history. Get in touch with us today to fly you to your dream education destination and achieve big!
