Pursuing an international degree from an overseas university is not just about expanding career horizons but it is also about having an experience of a lifetime. With the increase in number of overseas education aspirants, majority of the students are considering applying for an overseas education loan to fund their bachelor’s degree from an international university.
There are various financial institutions in India and overseas offering foreign education loan. Right from private banks, nationalized banks, international lenders and NBFCs - they all offer an education loan to study in a foreign country. When it comes to availing an overseas education loan, there are two major types of loans. They are namely:
Secured Overseas Education Loan: Secured Overseas Education Loan is the type of loan that is availed against a tangible security. If a student is willing to pledge a piece of land or a house against the education loan, then in such case the property market value should be high and up to 70% to 80% of the education loan is sanctioned against the market value of the property. Hence, students must show additional property (attached collateral) for up to 20 to 25 lakhs of the estimated value of the project.
•In a secured overseas education loans, the maximum loan amount offered by the major banks like SBI, BOB is up to 1. 5 Crore.
•The Rate of Interest offered by the government banks is less that is not beyond 10% whereas the ROI of the private banks and NBFCs goes up to 12%.
•There is a fixed processing fee of Rs. 10,000 that is charges by the government on the processing of secured overseas education loan.
•Almost all the government banks offer an interest-free moratorium period whereas private banks do not offer this benefit.
•For secured overseas education loans for bachelor’s studies, the government of India has introduced a couple of education loan subsidy schemes as well.
•Nationalized banks offer gild child concession to the female applicants whereas private banks do not offer this concession.
Unsecured Overseas Education Loan: Unsecured Overseas Education Loan is the type of loan that does not require any tangible security against the loan amount. Private and government banks hesitate to offer this type of education loan for bachelor’s degree as the waiting period for the loan repayment is longer i.e., 4 to 5 years including moratorium period.
When students are very specific about availing an unsecured education loan only then it is compulsory that the monthly income of the parents of the student should be around 1 lakh without any liabilities. In such cases, students are offered the direct EMI option and only NBFC and Private Banks offer this type of loan. International lenders offer unsecured education loan only for 3rd and 4th year, provided the university should come under their School Partner Listing. However, there are very limited chances of getting an unsecured education loan.
NBFC for Unsecured Overseas Education Loans: A Non-Banking Financial Corporation provides unsecured overseas education loan to the applicants. The four major NBFCs in India namely, Avanse, Incred, HDFC Credila, Credenc and Auxilo do provide an unsecured overseas education loan to the applicants.
•Co-applicant’s income profile: While availing an unsecured education loan from NBFC, the financial profile of the co-applicant plays an important role in deciding whether a student will get an unsecured education loan or not. It is important that the co-applicants have a fixed income source and they are regular taxpayers.
•World ranking of the University: The global ranking of the university plays an important role in deciding whether students will be availed an unsecured education loan or not. NBFCs usually have a list of universities that are the top-most and known for their high employment rate.
•Course the student has opted for: NBFCs tend to offer an unsecured overseas education loan for the courses that promises job security after the successful completion of the program. This in some way guarantees the return of the education loan by the students.
•Academic Record of the Applicant: NBFCs give an emphasis on the academic profile of the applicant. The percentile of the applicant in his/her X, XII, degree and English Language Standardized Tests and GMAT, SAT scores must be excellent.
If an applicant is opting for an unsecured overseas education loans at bachelors’ level, we would recommend applying at the NBFCs for the same. Here is why!
•Faster processing time: The processing time of an unsecured overseas education loan at the NBFC is less comparative to that of the government or nationalized banks. 7-8 working days are enough for the processing of unsecured loan via NBFC.
•Easy disbursement: NBFCs immediately disburses the loan amount according to the university and the student’s requirements.
•No Loan Margin: Applicant’s are not required to show the proof of funds as they do not impose any loan margin on the total loan amount.
In the last couple of years, E’LAN Loans has assisted over thousands of students in their overall education loan application process. We are working in this sector for a while now and it is our transparent work that attracts students.
Our loan experts give one-on-one guidance to the students and explain them every minute details resolving all their queries. Apply for an overseas education loan for bachelor’s degree via E’LAN Loans and be rest assured.
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