How to get a loan to study abroad? Read this
Education loans and the loan providers play an important role in society. These loans play a very vital role in the development of a career. Banks are the biggest source for the Education loan in India. Especially for those students who want to go abroad for their higher studies. Banks provide various kinds of loans to the students with many options. Students must be fulfilling certain requirements to get the loan from the bank.
Eligibility requirements for the students
Bank is a risk averse organization like all, so in order to get the education loan for your foreign study some essential criteria must be filled up. Some of the essential criteria are good academic track record, the demand of the course that you have applied for. A good academic record gives the bank required confidence in you as you will be going abroad for study. The market demand for the course will help the bank to analyze your future earning potential.
Banks will try to understand if the course will help you to get a good career monetarily. Banks will assess if the university or the college has a good reputation in their own country. They will look at the accreditation status of that college or university and only give a loan if it is of good repute.
Banks also need to understand your credibility. At the end of the day you need to pay back money to the bank. Banks may ask for guarantor or collateral in this process. Most of the time the guardian or the parents become guarantor for the loan. Most of the banks verify the earning potential of the parents if they are the guarantor.
List of Documents you Will require for the foreign education loan
Identification Documents:-
- Aadhaar Card
- Voter’s ID card
- Valid Passport
- PAN Card
Address Proof:-
Driving License
Or any of the above
Age Proof:-
Birth Certificate
Or any of the above
Co-applicant identification:-
- KYC Documents
- Residence proof
- Consent Letter
- Power of Attorney (for NRI Co-borrower)
- Copy of Visa for NRI Co-borrower (approved/stamped by competent authority)
- Copy of work permit (for NRI Co-applicant)
Proof of Admission:-
Conditional Admission Letter or,
Unconditional Admission Letter
Previous academic record:-
- Marksheets of qualifying examination (Class 12, Graduation, Post-graduation as applicable)
- Degree/Certificate copy of CA, ICWA, CPA etc.
- Supporting academic documents for study abroad
- Admission exam score cards of GRE, GMAT, LSAT, SAT, TOEFL, IELTS, HSK, etc.
Immovable Collateral Documents (not mandatory for NBFCs):-
- Land or property title deed
- Property Sale agreement
- Allotment Letter By Municipal Corporation / Authorized Govt. Authority
- NOC from Builder or Mortgage
- Extracts 7 or 12 of the property, land or otherwise
- Encumbrance certificates
- Bank Documents
Account Statement: at least 6 months, at most last 3 years
Copy of Bank Passbook
Third-party guarantee certificate/agreement
Movable property documents (not mandatory for NBFCs):-
- Original Bond certificate (Gold bonds, Bearer bonds, etc.)
- Original Policy document (Insurance)
- Portfolio Statement- DMAT
- Original Fixed Deposit or Recurring Deposits certificates
Proof of income:-
- Salary Slips (min: 6 months, max: 3 years)
- Accounts and Tax Statements of Business approved by CA (min: 1 year, max: 3 years)
Immigration and Foreign University documents:-
- Student acceptance letter (I-20 for USA, CAS for EU, etc.)
- Visa approval forms (F-1, J-1, H-1 for USA, Short Stay/temporary stay visa in Europe, etc.)
- Indian Income Tax Returns (ITR): Min. last 2 years, Max: last 4 years
- International Scholarship award certificate (if applicable)
- Copies of Demand letter for fees from educational institution (not mandatory for NBFCs)
- Copies of receipts for payment of academic fees (not mandatory for NBFCs)
- Minority caste certificate issued by relevant govt. authority
- Documents regarding disability/illness (degree of disability)
- Merit and extra-curricular certificates (if applicable)
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