Benefits of Enrolling in Approved Foreign Universities for Overseas Education Loans

When considering a study abroad loan in India, students often find themselves navigating a sea of options from Nationalized Banks, Private Banks, and NBFCs. The primary goal of these loans is to make overseas education accessible to every aspirant.

While education loans are available for students attending any foreign institution, there’s an added advantage when you choose ‘Prime Listed Universities’ or ‘Approved Foreign Universities.’ These institutions come with exclusive perks that make the loan process smoother and more valuable.

So, what exactly are these Approved Foreign Universities, and how can they benefit you? In this article, we’ll answer these questions with detailed insights to help you understand all your questions better!

What are Approved Foreign Universities & Colleges for Overseas Education Loan?

Approved foreign universities and colleges are institutions recognized by banks and NBFCs for overseas education loans. Each financial institution maintains its own list of approved foreign universities for education loans, which meet specific academic and accreditation standards.

These lists often include top universities from countries like the USA, UK, Canada, Australia, and more. Ensuring that your chosen university is on this list is essential, as it provides access to a range of benefits.

Wondering what they might be? You'll find all the information you need next.

Benefits of Enrolling in an Approved Foreign University for Overseas Education Loan

If your university is listed under the Prime List of your chosen bank or NBFC, you’re eligible for several exclusive benefits when applying for an overseas education loan. Here’s what you can expect:

100% Funding Assured
Prime-listed universities ensure that students receive full financial coverage for their education. This means your tuition fees, living expenses, and other associated costs will be entirely taken care of by the loan.
Property-Free Loan Sanctions
For many, arranging collaterals can be a challenge. However, students enrolled in approved foreign universities are often offered education loans without collateral, making the process smoother and more accessible.
Concessional Interest Rates for Students
Students who enroll in approved universities often benefit from lower interest rates on education loans. For example, at Bank of Baroda, the interest rate for loans to students attending prime-listed universities is 9.80%, while for non-prime universities, the rate starts at 10.50%.
No Requirement for Co-applicant or Guarantor
Some lenders waive the need for a co-applicant or guarantor entirely if the student’s chosen university is in the Prime List. This simplifies the process and makes it ideal for students who may not have access to a guarantor.
No Obligation for Interest Payments During Studies
Students can focus entirely on their studies without worrying about paying interest during the course period. Interest obligations begin only after the completion of the course, offering significant financial relief.
Loan Eligibility Based Solely on Student Profile
When applying for loans linked to prime universities, the focus shifts to your academic profile and admission status. This means your education loan eligibility doesn’t rely on family income or property ownership.
Parent's CIBIL Score Not Considered by International Lenders
Many international lenders exclusively assess the student’s profile, leaving out the parent’s credit score. This is especially beneficial for students whose parents may not have a strong financial or credit history.
Loan Sanction Amount Exceeding Property Value
Lenders for prime universities may approve loans that exceed the value of the collateral or property. However, for non-prime universities, the loan amount is typically lower than the property's value to mitigate any risks.
Consideration of Cash Income for Loan Eligibility
For families with cash-based income sources, some lenders offer flexibility by considering cash income for loan eligibility. This inclusivity widens access for students from diverse financial backgrounds.
Loan Sanction Based on Bank Statements
In some cases, a student’s or family’s bank statements are sufficient to qualify for a loan. This streamlined approach eliminates the need for complex documentation..
Simplified Loan Processing for Quick Approvals
Loans for students admitted to prime-listed universities are processed faster due to streamlined procedures. This ensures you can focus on your visa and travel arrangements without delay.
Processing Fee Refund After Disbursement
Some banks refund the loan processing fee once the loan amount is disbursed. This makes the process cost-effective and student friendly.
Easier Approvals for Prime Listed Universities
Prime-listed universities are often pre-vetted by lenders, leading to faster and smoother approvals. This eliminates much of the uncertainty and stress associated with loan applications.
No Need to Show Income Tax Return
Enrolling in a prime-listed university offers the advantage of not requiring an Income Tax Return for overseas education loan applications. This is because these universities are recognized for their credibility, reducing the need for additional financial documentation
Co-applicant's or Guarantor’s CIBIL Score Not Mandatory for Some Lenders
Certain lenders are flexible regarding the co-applicant’s or guarantor’s credit score if the student’s university is on the Prime List. This reduces challenges for students with limited financial support.
Free Loan Sanction Letters by Select Banks
Some banks offer free sanction letters, saving students from additional charges. These letters can be used to confirm your financial ability during the visa application process.
Extended EMI Tenure Options
Prime-listed students often benefit from flexible repayment terms with longer tenures, making monthly EMIs more manageable after graduation.
Convenient Doorstep Services
Many lenders provide doorstep services for document collection and verification, saving students and parents the hassle of visiting the bank multiple times.

As you can see, applying to an approved foreign university provides numerous advantages in education loan for abroad studies!

However, the list of such institutions is not always readily available on every bank's website. So, if the list isn't accessible, how can you determine if your chosen university is approved by your lender? Keep reading to find out.

How to identify Approved Foreign Universities & Colleges for Overseas Education Loan?

After reading all the benefits, you must be excited about applying to an approved foreign university. But you might be wondering: Where can you access the lists; we’ve been talking about throughout this article?

Well, you have two options:

Option 1: Visit Banks Individually
You could visit each bank separately and ask for their list of prime universities. Sounds simple, right? But it is time-consuming. You’ll need to contact multiple banks and still may only get a partial view of the options available. It’s a lot of effort for potentially limited results.
Option 2: Approach Élan Overseas Education Loans
Here’s the smarter option: approach Élan Overseas Education Loans. We give you access to the lists of approved foreign institutions from all the leading banks under one roof! Yes, you heard that right — every you need, all in one place. Not only will we help you identify prime listed universities, but we’ll also ensure you get the lowest interest rate on your education loan along with many other benefits.

Why go through the hassle when you can have everything you need with ease? Connect with Élan Loans today — we’ve got you covered every step of the way!