Studying abroad is one thing many students dream about. But apart from the good academic report, you need to have a financial backup to fulfill your dream of studying in a prestigious foreign college/university. This article will tell you everything about a loan for foreign studies and the eligibility criteria, and the requirements to apply for one.
Types of Education Loans
There are two types of education loans:
- Unsecured Loan: A Secured Loan is a loan where the applicant does not have any collateral to give while applying for the loan. These kinds of loans have a high rate of interest because they are hard to get through. Banks need some guarantee that if the applicant is unable to return the loan, they can take back the amount through a channel.
- Secured Loan: These are the type of loans when there is collateral like house, land, building, jewelry, etc., against the loan. These loans have a lower rate of interest because they are secured.
Eligibility Criteria to apply for Foreign Education Loan
Below are the criteria that all the Indian banks see before sanctioning the loan application of a student:
- The applicant should be an Indian citizen.
- He/she should have attained 18, or else the loan will be in the parent’s or guardians’ name.
- The applicant must have a good academic report and background.
- He/she should have qualified and gained admission to a university or college abroad.
- The course for which the applicant is applying for a loan should be a professional course that has a maximum job guarantee.
Documents Required for applying for Foreign Education Loan.
Every loan requires some documents to be submitted while applying for it. Here are the documents required for foreign education loan:
- A filled application form
- A passport size photograph of applicant and co-applicant
- Photo ID (ex. Pan card, Aadhaar card, voter id card) of applicant and co-applicant
- Residential proof of the applicant and co-applicant
- Academic documents of the applicant- Marksheets and entrance exam score report
- Admission proof by the university
- Last six months bank statements
- Income proof of the co-applicant
- In case of collateral- papers of the asset
How to Apply for Student Loans and How can Fullerton India help you?
- Students first need to check their eligibility criteria, which are listed on the Fullerton India website or Fullerton India Instaloan app . If they still have issues, they give us a call, and we will assist you in any way possible regarding your confusion.
- When the eligibility criteria are checked, a loan counselor is assigned who tells the student about the loan schemes and what amount of loan they should take.
- Now the student needs to tell the lender that is Fullerton India if he is willing to take up the process further.
- Now is the time to submit the required documents. Any document missing can lead to loan rejection.
- After going through all the documents and doing all the formalities, if the authorities feel that the application is good to go, we sanction the loan.
- After the signatures of both the parties, the loan amount is disbursed in the student’s account.
This is all about the higher education loan. You can also take a personal loan for taking higher education. The loan tenure in the personal loan is much higher than the education loan, which gives you the time to settle properly. Fullerton India personal loan is going to help you in any way possible in achieving all your dreams.