Annually, thousands of students from India plan to study abroad. According to the most recent Ministry of External Affairs data, the number of students studying abroad increased even after the pandemic began. According to the report, more than 1.1 million Indian students will be studying abroad by 2021.
According to a report by management consulting firm RedSeer, approximately 1.8 million students are likely to pursue higher education abroad in 2024, with annual spending reaching an estimated $80 billion.
Many of these students seek education loans, but obtaining one is not always as simple as it appears. Obtaining an education loan is usually not an easy or quick process because lenders consider everything from where you will study to the loan amount. Here’s what you can do to make things easier:
Institute’s Reputation:
Students frequently make the mistake of selecting a country or institute that is less expensive but less well-known. This decision is usually influenced by the student’s financial situation. Moreover, depending on the renown and success rate of a university’s alumni, many lenders may sanction a loan with no or low-value collateral.
Banking institutions typically have a list of universities and courses for which students receive special advantages such as lower interest rates or the requirement to put up only low-value collateral.
Lenders Apart From Banks:
When compared to studying in India, the number of lenders available increases when studying abroad. Aside from banks and non-banking finance companies (NBFCs), there are international organisations that provide education loans, such as Prodigy Finance and MPower Financing. Various universities also assist international students in obtaining loans in their home countries. Before choosing a lender, consider the repayment period, interest rate, and other terms and conditions.
Good Credit Score:
A good credit score, like any other loan, increases the likelihood of approval. As a result, make sure you pay off all loans, even small ones like buy now, pay later (BNPL) loans, on time. Paperwork is essential, a Aside from knowing your customer (KYC) documents, keep salary, income tax return (ITR), and collateral paperwork on hand. Before applying for a loan, both the applicant (if previously employed) and the person providing collateral should have ITR documents for the previous few years. Separate the confirmation letter from other documents received from the university.
Explore Scholarships:
Diverse educational organisations and institutions provide partial scholarships. Search for scholarships before or during the application process, as there are various initiatives and opportunities to receive a scholarship in addition to a loan. Organizations such as the Tata Foundation, the Aga Khan Foundation, and others also offer 0% loan products and grants. Organizations like Gyandhan and We Make Scholars assist students with loan and scholarship programmes.
Legal Disclaimer: This article is provided for information purposes only.
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