The tuition fees for higher education are increasing day by day and if you are going to study abroad they can certainly be a factor which can demotivate you. But still you have to think about the dream of your child and for that, the best possible thing there to help you is the education loan. Now here we will give you information on how to take the loan and what are the things you need to keep in mind while applying for an education loan.
If you have earned a scholarship don’t ever think that it will cover everything as you have to still take an education loan as the overall cost of study in abroad may be very high to your liking. Now you may be thinking about what does the education loan covers. It covers usually all like tuition fees, cost of books, and other supply fees, board fees, room rent, health insurance fees, transportation fees, and the expense of living. The bank does not give the money to hand but they transfer the money to the Uni’s account at each year’s start or the start of the semester whichever is required. how to apply for education loan to study abroad in India.
To take a loan, first you have to compare the interest rates of various banks and then choose the bank which suits you.
- For the amount between 4 lakhs to 7.5 lakhs the State Bank of India offers an interest rate of 13.75% and for a loan over 7.5 lakhs, the interest rate is 11.75%. They give a maximum of 30 lakhs as education loan.
- The interest rate of the Bank of Baroda is 12% for the loans over 4 lakhs. The provide a maximum loan of 20 Lakhs.
- For the amount between 4 lakhs to 7.5 lakhs the Canara Bank offers an interest rate of 12% and for a loan over 7.5 lakhs, the interest rate is 9.5%. They give a maximum of 20 lakhs as education loan.
- These are the best banks to take a loan from. Other than them there are some more good banks like the Axis Bank, HDFC Bank, ICICI Bank, and the Indian Overseas Bank.
First while choosing a bank, you need to see that if all your expenses are covering or not. Like a few banks do not cover Short-term programs or the vocational courses abroad.
For the loans above 5 Lakhs, you will need a cosigner. This is a very big commitment as the person will be agreeing to pay your debt on your behalf.
After all of this is checked, you need to apply to the bank of your choice with the identity proof, address proof, and signature proof. Don’t forget to read the clause well before just signing it. Usually, for a loan over 4 lakhs, you need to provide a margin money of 15% to the bank. If you have any more questions, you are free to ask them in the comments section.